Ask Question, Ask an Expert


Ask Basic Finance Expert

problem1: Compute the effective duration of a bond to a 100 basis point change in interest rates with a 6-1/4 coupon, 10-years remaining to maturity, & an asking quote of 110.7811 [decimal, not 32nds].

problem2: Compute the effective convexity to a 100 basis point change of the bond in problem 1.

problem3: Compute the total percentage price change [duration & convexity] to a 65 basis point decrease in interest rates for the bond in problems 1 and 2.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918832

Have any Question? 

Related Questions in Basic Finance

Suppose that a study shows that 90 of people who have

Suppose that a study shows that 90% of people who have contracted Zika fever have mosquito bites prior to contracting the disease. Zika fever is rare; suppose only one in a million people have the disease. If you are bit ...

Jack and jill corporations year-end 2009 balance sheet

Jack and Jill Corporation's year-end 2009 balance sheet lists current assets of $259,000, fixed assets of $809,000, current liabilities of $186,000, and long-term debt of $291,000. What is Jack and Jill's total stockhold ...

Fed policy focused on long-term interest rates why might

Fed Policy Focused on Long-term Interest Rates: Why might the Fed want to focus its efforts on reducing long-term interest rates rather than shortterm interest rates during a weak economy? Explain how it might use a mone ...

Assignment questions-a list and briefly describe the three

Assignment Questions- A. List and briefly describe the three general areas of responsibility for a chief financial officer (CFO) of a selected non-financial company which is listed on Australian Stock Exchange (ASX). Exp ...

Homework set2015 strayer university all rights reserved

Homework Set 2015 Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied, further distributed, or otherwise disclosed in whole or ...

What is a budgetcontrolling costs is an important aspect of

What is a Budget? Controlling costs is an important aspect of business. Some individuals may determine that this is the single most important aspect of a financial position in an organization. A budget is an estimate of ...

Inflation was 8 percent during the most recent year and

Inflation was 8 percent during the most recent year and your organization's investment in land rose 12 percent. If the beginning appraised land value was $1,000,000, what increase in specific prices over general price le ...

Mtu corporation it stand for made this up had sales last

MTU Corporation (it stand for " Made This Up") had sales last year of $1,000,000. They sell heat shields to place on your lap for stupid McD's customers who insist on placing a cup of hot coffee between their legs. The m ...

Zig and zag c-mart has daily sales of 36600 costs of 28400

Zig and Zag C-Mart has daily sales of $36,600, costs of $28,400, depreciation expense of $3,100, and interest expense of $1,500. If the tax rate is 34 percent, what is the daily operating cash flow, OCF? a. $7,013 b. $6, ...

Impact of credit crisis on risk premiumsexplain how the

Impact of Credit Crisis on Risk Premiums: Explain how the credit crisis affected the credit risk premium in the commercial paper market.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate