What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annualinterest rate of 5%?It can be calculated using the below formula,Macaulay Duration Formulat-C-M+(1+y)(1+y)Current Bond PriceMacaulay DurationMacaulay =Duration Formulatx C+(1+ y)nxM(1+ y)nCurrent Bond Pricewww13

Step 1:This is calculated as (1*1 / (1+0.05) + 2*1 / (1+0.05)^2 + ... + 10*1 / (1+0.05)^10) /…

Answered: What is the Macaulay duration of a $1…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Qw.12.a A fully amortizing mortgage loan is made for $104,000 at 6 percent interest for 20 years. Required: a. Calculate the monthly payment for a CPM loan. b. What will the total of payments be for the entire 20-year period? Of this total, how much will be the interest? c. Assume the loan is repaid at the end of eight years. What will be the outstanding balance? How much total interest will have been collected by then? d. The borrower now chooses to reduce the loan balance by $5,400 at the end of year 8. (1) What will be the new loan maturity assuming that loan payments are not reduced? (2) Assume the loan maturity will not be reduced. What will the new payments be?
H3. Show proper step by step calculation
fx D. Amount of loan: %24 50,000 Annual payment: %24 10,000 Interest rate: 8% 6. How many years will it take to pay off the loan?
What is the interest rate on a loan of $52,000 for 54 days that yields $780.00 interest? Group of answer choices 110% 0.3% 0.1%10%
What is the present value of a debt of $1,245 to be paid in 24 months, at a discount rate of 10% per year? Question 4 options: 996 1297 1037 1323
Explanation it correctly Q)Which of the following interest rates is usually the highest? Multiple Choice 30-year mortgage rate 20-year Treasury bond rate consumer credit-card rate prime rate of banks
Question 1: Part A. The current 10 year treasury note is approaching the important threshold of: a) 2.75% b) 2.95% c) 3.25% d) 2.0% Part B. In a real estate investment, you may want to obtain a mortgage. In so doing, which year would you expect to see the highest amount of principal pay-down (in a payment mix of principal and interest)? a) year 15 b) year 20 c) year 10 d) year 25Part C. In a Fast Market, you would rather sell a stock using a: a) Market Order b) Market On Close Order c) Limit Order d) Market On Open OrderPart D. Given that equity markets are asymmetric in their respective moves, markets are said to take________________________ a) the slow grind higher into perpetuity b) the stairs down and the elevator up c) the stairs up and your mom home d) the stairs up and the elevator down Part E. It is said that traders have come to employ the use of technical analysis potentially for all of the following reasons except:…
Ques What is the future value (FV) of $50,000 in six years, assuming the interest rate is 4% per year? A. $53,776 B. $56,939 C. $32,500 D. $63,266

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