Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 4SQ
(MDURATION) What was the modified duration of the Treasury 8.5s? How would modified duration differ if the coupon were only 7.5%?
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Mf4.
. Assume that you bought a Treasury bill at price=92.450 and sold two days later at 92.550.
What is your holding period return?
What is your annualized return?
You are given the following information: Term
(days) Rate DBP 180 6.00% 0.9709 360 6.20%
0.9416 540 6.40% 0.9124 720 6.60% 0.8834
What is the quoted fixed coupon rate?
(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas.
Asman
Salinas
$10
$30
12
28
11
32
13
35
Time
1234
3
4
How would you interpret the meaning of the annual rates of retur?
The rate of return you would have eamed on Asman stock from time 1 to time 2 is%. (Round to two decimal places.)
The rate of return you would have earned on Asman stock from time 2 to time 3 is%. (Round to two decimal places.)
The rate of return you would have eamed on Asman stock from time 3 to time 4 is%. (Round to two decimal places.)
The rate of return you would have earned on Salinas stock from time 1 to time 2 is%. (Round to two decimal places.)
The rate of return you would have earned on Salinas stock from time 2 to time 3 is %. (Round to two decimal places.)
The rate of return you would have earned on Salinas stock from time 3 to time 4 is %. (Round to two decimal places.)
Chapter 3 Solutions
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 3 - (PRICE) In February 2009, Treasury 8.5s of 2020...Ch. 3 - (YLD) On the same day, Treasury 3.5s of 2018 were...Ch. 3 - (DURATION) What was the duration of the Treasury...Ch. 3 - (MDURATION) What was the modified duration of the...Ch. 3 - Prob. 1PSCh. 3 - Bond prices and yields The following statements...Ch. 3 - Prob. 3PSCh. 3 - Bond prices and yields A 10-year German government...Ch. 3 - Bond prices and yields Construct some simple...Ch. 3 - Spot interest rates and yields Which comes first...
Ch. 3 - Prob. 7PSCh. 3 - Spot interest rates and yields Assume annual...Ch. 3 - Prob. 9PSCh. 3 - Prob. 10PSCh. 3 - Duration True or false? Explain. a....Ch. 3 - Duration Calculate the durations and volatilities...Ch. 3 - Term-structure theories The one-year spot interest...Ch. 3 - Real interest rates The two-year interest rate is...Ch. 3 - Duration Here are the prices of three bonds with...Ch. 3 - Prob. 16PSCh. 3 - Prob. 17PSCh. 3 - Spot interest rates and yields A 6% six-year bond...Ch. 3 - Spot interest rates and yields Is the yield on...Ch. 3 - Prob. 20PSCh. 3 - Prob. 21PSCh. 3 - Duration Find the spreadsheet for Table 3.4 in...Ch. 3 - Prob. 23PSCh. 3 - Prob. 25PSCh. 3 - Prob. 26PSCh. 3 - Prob. 27PSCh. 3 - Prob. 28PSCh. 3 - Prob. 29PSCh. 3 - Prices and yields If a bonds yield to maturity...Ch. 3 - Prob. 31PSCh. 3 - Price and spot interest rates Find the arbitrage...Ch. 3 - Prob. 33PSCh. 3 - Prices and spot interest rates What spot interest...Ch. 3 - Prices and spot interest rates Look one more time...
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Chapter 8 Risk and Return; Author: Michael Nugent;https://www.youtube.com/watch?v=7n0ciQ54VAI;License: Standard Youtube License