B consists of a 5.95-year zero-coupon bond with a face value of $5‚000. The current yield on all bonds is 10% per annum. (a) Show that both portfolios have the same duration. (b) Show that the percentage changes in the values of the two portfolios for a 0.1% per annum increase in yields are the same. (c) What are the percentage changes in the values of the two portfolios for a 5% per annum increase in yields? a) The duration of Portfolio A is Since this is also the duration of Portfolio
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78 D 4 $635.52 1). The yield to maturity on bond A is . a. 10% b. 11% c. 12% d. 14% e. none of the above 2). The yield to maturity on bond C is . a. 10% b. 11% c. 12% d. 14% e. none of the above 3). A coupon bond that pays interest annually is selling at par value of $1‚000‚ matures in 5 years‚ and has a coupon rate of 9%. The yield to maturity on this bond is a. 6.00% b. 8.33% c. 9.00% d. 45
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Chapter 4: The Valuation of Long-Term Securities 1. What is the market value of a $1‚000 face-value bond with a 10 percent coupon rate when the market’s rate of return is 9 percent? Answer: More than its face value. 2. If an investor may have to sell a bond prior to maturity and interest rates have risen since the bond was purchased‚ the investor is exposed to __________. Answer: interest rate risk 3. Beta Budget Brooms will pay a big $2 dividend next year on its common stock
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Density of Bromine = 3.103 g/ml[2] Mass of Bromine = (0.25ml) X (3.103g/ml) = 0.78g Molar mass of Bromine = 79.9g/mol[2] Number of moles of bromine = (0.78g) / (79.9g/mol) = 0‚0097 mols Acetanilide is the limiting reagent -To find the heoretical yield of p-bromoacetanilide: Number of moles of p-bromoacetanilide =0‚0049 mols Molar
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Chapter 5‚ 6 Review 1. You invested $1‚650 in an account that pays 5 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually? A. $849.22 B. $930.11 C. $982.19 D. $1‚021.15 E. $1‚077.94 2. Today‚ you earn a salary of $36‚000. What will be your annual salary twelve years from now if you earn annual raises of 3.6 percent? A. $55‚032.54 B. $57‚414.06 C. $58‚235.24 D. $59‚122.08 E. $59‚360.45 3. You hope to buy your dream
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years has a yield of 6%. A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on the corporate bond? Maturity = 10 years rtbond = 6% rcbond = 9% liquidity premium = 0.5% rd= r* + IP + DRP + LP + MRP Default Risk Premium (DRP) = 9% - 6% + 0.5% = 2.5% (5-7) Renfro Rentals has issued bonds that have a 10% coupon rate‚ payable semiannually. The bonds mature in 8 years‚ have a face value of $1‚000‚ and a yield to maturity
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Data Collection and Processing Aspect One -2.00grams of Sr(NO3)2 used -2.00grams of CuSO4 -Reactants: Sr(NO3)2 and CuSO4 Trial Mass of Beaker (g) Mass of Beaker with Sr(NO3)2 (g) Mass of Beaker (g) Mass of Beaker and CuSO4 (g) Mass of Filter Paper (g) Mass of Filter Paper and Contents (g) 1 111.08±0.01 113.08±0.01 111.1±0.01 113.1±0.01 1.28±0.01 2.93±0.01 2 111.1±0.01 113.1±0.01 111.23±0.01 113.23±0.01 1.27±0.01 2.98±0.01 3 111.26±0.01 113.26±0.01 111.09±0.01 113.09±0.01 1.27±0.01
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Title: Preparation of Cyclohexene from Cyclohexanol Aim: To prepare an alkene‚ cyclohexene‚ by the dehydration of an alcohol‚ cyclohexanol‚ and better understand the processes that take place during this reaction. Introduction: One of the common ways of preparing an alkene is through the dehydration of an alcohol. In this experiment cyclohexanol is dehydrated to prepare cyclohexene while using sulfuric acid as a catalyst. A bromine test can be later done to ensure that the end product is
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Corning Glass Company focused on commercial products until the 1960s when it entered the consumer market. One of Corning’s exceptional technologies in this market was Z-Glass. After several successful years of producing Z-Glass at the Harrisburg plant‚ yield output began a steady decline in July 1977. In late 1977‚ a Manufacturing and Engineering (M & E) team from Corning’s corporate staff was assigned to the plant to evaluate the recent declines in productivity. In March 1978‚ the M & E division’s leader
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Introduction: The purpose of the first experiment was to practice obtaining accurate and precise results by doing combustion analysis to find the amount of carbon dioxide and water released and the amount of fuel consumed. To identify the amount of carbon dioxide‚ water and burner consumed there were three equations used to find it. Equation 1 shows how much carbon dioxide was released. Mass of carbon dioxide = m2 - m1 Equation 1 was used as an experimental procedure created to help find out
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