for finance homework help, Accou

[accountsA1]

Email me your accounting homework & accounting assignments & I will send you back the solutions. In addition to Accounting homework help & accounting assignments help, I also help in online accounting exams, online accounting tests & tutoring, accounting word problems, accounting case study & accounting essays.

Send me your accounting & finance assignments and i will send you back the answers. I also help in projects, papers and essays.

I also help in:-
(a) accounting homework help
(b) finance homework help
(c) managerial accounting assignment solutions
(d) net present value, future value & compounding
(e) bonds, stocks, options, derivatives homework
(f) financial management homework help
(g) statistics homework help
(h) homework ratio analysis & cash flow statement homework
(i) income statement & balance sheet & shares & debentures
(j) marginal costing, standard costing & variable costing
(k) marketing homework help
(l) economics homework help
(m) accounting-finance homework
(n) activity based costing , break even point & cvp analysis
(o) lifo, fifo, weighted average & journal entries homework & trial balance

please visit or email me on

 

[Denis]

Please DO NOT look for business at sites like this one.

 

[mary12]

hello,

I am new in this forum. If someone could help me with this problem I have.

THanks


A 12.75-year maturity zero coupon bond selling at a yield to maturity of 8% has convexity of 150.3 and modified duration of 11.81 years. A 30-year maturity 6% coupon bond making annual coupon payments also selling at a yield to maturity of 8% has nearly identical modified duration-11.79 years-but higher convexity of 231.2. (hint: portfolio duration is weighted average of individual asset’s duration)

a. Suppose the yield to maturity on both bonds increases to 9%. What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration –with-convexity rule?
b. Repeat part (a), but this time, assume the yield to maturity decreases to 7%.
c. Compare the performance of the two bonds in the two cases, one involving an increase in rats, the other a decrease. Based on their investment performances, explain the attraction of convexity.