Lucky Star Inc. just issued a bond with the following characteristics: Maturity = 3 years...
50.1K
Verified Solution
Link Copied!
Question
Finance
Lucky Star Inc. just issued a bond with the following characteristics:
Maturity = 3 years
Coupon rate = 8%
Face value = $1,000
YTM = 10%
Interest is paid annually and the bond is noncallable.
Calculate the bonds Macaulay duration (10 points) ?Round "Present value" to 2 decimal places and "Duration" to 4 decimal place.?
Calculate the bonds modified duration (5 points)
Assuming the bonds YTM goes from 10% to 9.5%, calculate an estimate of the price change without considering convexity (5 points).
Calculate the convexity of the bond.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.