subject
Business, 14.08.2019 08:20 martinhannaheovgtjp

A12.75-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 150.3 and modified duration of 11.81 years. a 30-year maturity 6% coupon bond making annual coupon payments also selling at a yield to maturity of 8% has nearly identical modified durationâ-11.79 yearsâ-but considerably higher convexity of 231.2. a. suppose the yield to maturity on both bonds increases to 9%. what will be the actual percentage capital loss on each bond? what percentage capital loss would be predicted by the duration-with-convexity rule? (do not round intermediate calculations. round your answers to 2 decimal places.) b. suppose the yield to maturity on both bonds decreases to 7%. what will be the actual percentage capital gain on each bond? what percentage capital gain would be predicted by the duration-with-convexity rule? (do not round intermediate calculations. round your answers to 2 decimal places.)

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 06:00
Cash flow is often a problem for small businesses. how can an entrepreneur increase cash flow? a) locate lower-priced suppliers. b) forego sending in estimated tax payments to the irs c) shorten the terms on a bank loan to pay it off more quickly d) sell more low-margin items.
Answers: 1
question
Business, 23.06.2019 01:10
Match the steps for conducting an informational interview with the task involved in each step or its purpose. 1. research your chosen career field. 2. identify someone to interview. 3. prepare for the interview. 4. conduct the informational interview. 5. follow up with your interviewer. a. learn more about a company that interests you. b. encourage the interviewer to do most of the talking while you take notes. c. write a handwritten -you letter to express that you want to stay in touch. d. make contact through email, a phone call, or mail to arrange the meeting. e. choose a conservative, professional ensemble to wear.
Answers: 3
question
Business, 23.06.2019 01:20
Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms.if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.
Answers: 2
question
Business, 23.06.2019 03:00
On december 31, 2016, the decarreau, andrew, and bui partnership had the following fiscal year-end balance sheet: cash $10,000accounts receivable $20,000inventory $25,000plant assets - net $30,000loan to decarreau $18,000total assets $103,000accounts payable $14,000loan from bui $15,000decarreaua, capital (20%) $32,000andrew, capital (10%) $23,000bui, capital (70%) $19,000total liab./equity $103,000the percentages shown are the residual profit and loss sharing ratios. the partners dissolved the partnership on january 1, 2017, and began the liquidation process. during july the following events occurred: * receivables of $18,000 were collected.* all inventory was sold for $15,000.*all available cash was distributed on january 31, except for$8,000 that was set aside for contingent expenses.the book value of the partnership equity (i.e., total equity of the partners) on december 31, 2016 isa. $58,000b. $71,000c. $66,000d. $81,000
Answers: 1
You know the right answer?
A12.75-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield)...
Questions
question
Mathematics, 08.04.2021 01:00
question
Mathematics, 08.04.2021 01:00
question
Health, 08.04.2021 01:00
question
Mathematics, 08.04.2021 01:00