User Homework Solutions

CH 13 QUIZ 54 A terminal wealth table generates the ending value of the investment at the end of the year, assuming that the bond A. Has a maturity date corresponding to that year B. Has a maturity date corresponding to the next year C. Is a zero-coupon bond D. None of the above

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 55 Compute the duration for the data in this problem using a discount rate of 12%. A. 3.00 years B. 2.95 years C. 2.85 years D. 2.75 years E. 2.65 years

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 56 You have invested $1,000 in a 12% coupon bond that matures in three years. You are investing the interest income in a fund earning 8%. At the end of three years, what will be your portfolio sum? A. $1,120.00 B. $1,249.60 C. $1,360.00 D. $1,389.57 E. $1,540.73

Other / Other University of Phoenix / Other 02 Sep 2015

CH 13 QUIZ 57 You have invested $1,000 in a 12% coupon bond that matures in three years. You are investing the interest income in a fund earning 8%. At the end of three years, what was your annualized rate of return? A. 8% B. 12% C. 13.4% D. 39% E. 11.6%

Other / Other Other / Other 02 Sep 2015

AC 302 Week 8 EXAM Quiz Question 1 Which type of accounting change should always be accounted for in current and future periods? Question 2. Question : Which of the following disclosures is required for a change from sum-of-the-years-digits to straight-line depreciation method? Question 3. Question : On January 1, 2012, Nobel Corporation acquired machinery at a cost of $1,200,000. Nobel adopted the straight-line method of depreciat

Other / Other allied-american-university / AC 302 02 Sep 2015

CH 13 QUIZ 58 Compute the duration for a bond with a 8 percent coupon rate maturing in five years. A discount rate of 10 percent should be applied.

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 59 A 10 percent coupon rate, five-year bond is currently selling to yield 12 percent and is priced at $927.50. a) Recalculate the price of the bond based on a 7 percent yield to maturity and calculate the percentage price change. (use annual compounding) b) If this bond has a duration of 3.40, how would you approximate the change in price of the bond for a 5 percent change in the yield to maturity?

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 21 For a bond selling at par of $1000, when the coupon equals the yield to maturity in the current market, duration then is equal to the bond maturity in years.

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 22 One of the problems with duration is that it often assumes a parallel shift in yield curves.

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 23 It is possible that a bond with a shorter maturity than another bond may actually have a longer duration and be more sensitive to interest rate changes.

Other / Other ashford university / Other 02 Sep 2015