financial calculation question

What is the duration of a bond with a par value of $10,000 that has a coupon rate of 6.5% annually and a final maturity of two years? Assume that the required rate of return is 6% compounded semi-annually. What is the duration of a two-year zero coupon bond that pays $10,000 at maturity and is priced to yield 6% with semi-annual compounding? Why do the durations differ?
Click here to have this paper written by a professional writer

Popular posts from this blog

Competency vs. Insanity

Image
Competency to stand trial demands that a defendant understands the purpose and nature of the legal proceedings and be able to cooperate effectively with counsel in defense. To appreciate the proceedings, a defendant has to be able to understand the charges and the penalties if convicted. On the other hand, sanity refers to the defendant mental status while committing a crime. A defendant is considered insane if the act’s commission was due to mental defect or disease, and thus lacking, the capacity either to conform his act to the law’s requirement or appreciate the wrongfulness of his act (Stafford  & Sellbom, n.d.). Place Order Now The legal standard employed to establish competency through evaluation demand that a forensic psychiatrist employ mental status examination to evaluate the general mental health of the defendant. This includes cognitive ability, memory, judgment, understanding and appreciation. The psycholegal questions that need to be address include the cu...
Read more

Apple’s New Strategy

Apple’s New Strategy             Apple is one of the big companies that create and sell computer software, electronics, and personal computers worldwide. The company has successfully been able to stand out against its competitors like Samsung due to its current competitive strategies. Varied products such as iPads and iPhones have been recognized as Apple’s main sources of competitive advantage due to high brand awareness that the company creates related to these products. Apple’s managers are aware that they can attract more customers in the market by presenting new products to them through extensive innovation. The innovation strategy developed must in this sense seek to remain the best over those used by its close competitors. One new innovation strategy for Apple that is geared towards maintaining an edge in the industry is to create iPhone 5S that has a bigger screen and more software than Samsung products (Bloomberg, 2013)....
Read more

Fort Mitchell, Alabama Adult Day Care Center

Image
Executive Summary Fort Mitchell Alabama Adult Day Care Center targets people seniors with an annual income of more than $30,000. In addition, it targets caregivers who have incomes of more than 50,000. Therefore, the company would advertise its services through direct mail, newspapers advertisements, and other publications that target the elderly. The center expects to reach a large number of potential clients using the above advertising means. The center would face stiff competition from other centers. Therefore, it would devise innovative programs that meet certain client needs. The center would provide dance therapy lessons, physical, speech, occupational therapy, and support services to caregivers. The center would ensure that it has enough trained professionals who would meet the needs of the clients. Market Analysis Organization and Products The ageing population of the U.S. has necessitated the development of numerous adult day care centers to care for the needs of th...
Read more