GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
11th Edition
ISBN: 9781260201550
Author: Bodie
Publisher: MCG
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Chapter 16, Problem 9PS

A

Summary Introduction

To calculate: The duration of the zero-coupon bond.

Introduction: The duration of the bond is the total of the weighted average of time at which the investor gets its full payment after the completion of maturity period. The value of weights is proportional to the value of the payment.

B

Summary Introduction

To calculate: The market value and face value of the bond.

Introduction: The face value is the initial price value of the bond. It is decided by the firm to promote the bond and to increase the selling of the bond. This price is always less the market price. Market rice of the bond is decided by the market fluctuations. It contains the profit or loss compared to the previous values.

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