Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 16, Problem 15PS

A

Summary Introduction

To calculate: The time period of the investment when it obligate.

Introduction: A time period is a weighted average duration in which the total payment is done by the bond and the value of weights is depends on the present value of the payment.

B

Summary Introduction

To calculate: The amount which is placed in each bond if the plan uses 5 years and 20 years zero-coupon.

Introduction: The investment bond value for future years depend on the present value of the annuity value. The amount is the product of the present value with weight of the bond.

C

Summary Introduction

To explain: Face value of the holdings.

Introduction: Face value is related to the share amount. Face value is first price which is assigned to the share holder and this price is fixed for all the time.

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