Question

Suppose you will go to graduate school for 2 years beginning in year 5. Tuition is $34,956 per year, due at the end of each school year. What is the Macaulay duration (in years) of your grad school tuitions? Assume a flat yield curve of 0.04.

Assume annual compounding. In the above description, if you see a flat yield curve of 0.08 for example, then it means that the yield at all maturities is 8%.

Answer #1

**SEE THE IMAGE. ANY DOUBTS,
FEEL FREE TO ASK. THUMBS UP PLEASE**

Suppose you will go to graduate school for 2 years beginning in
year 4. Tuition is $28,359 per year, due at the end of each school
year. What is the Macaulay duration (in years) of your grad school
tuitions? Assume a flat yield curve of 0.06. Assume annual
compounding. In the above description, if you see a flat yield
curve of 0.08 for example, then it means that the yield at all
maturities is 8%.

1) Suppose you will go to graduate school for 3 years beginning
in year 5. Tuition is $25,109 per year, due at the end of each
school year. What is the Macaulay duration (in years) of your grad
school tuitions? Assume a flat yield curve of 0.03.
Assume annual compounding. In the above description, if you see
a flat yield curve of 0.08 for example, then it means that the
yield at all maturities is 8%.

Suppose you will go to graduate school for 3 years beginning in
year 4. Tuition is $31,964 per year, due at the end of each school
year. What is the Macaulay duration (in years) of your grad school
tuitions? Assume a flat yield curve of 0.05. Assume annual
compounding. In the above description, if you see a flat yield
curve of 0.08 for example, then it means that the yield at all
maturities is 8%.

Suppose you will go to graduate school for 3 years beginning in
year 5. Tuition is $25,109 per year, due at the end of each school
year. Assume a flat yield curve of 0.03.Assume annual compounding.
In the above description, if you see a flat yield curve of 0.08 for
example, then it means that the yield at all maturities is
8%.Suppose, the tuition obligations have a Macaulay duration of
5.14 in years and a present value of 42,661. In...

Background: Suppose you will go to graduate school for 3 years
beginning in year 5. Tuition is $25,109 per year, due at the end of
each school year. Assume annual compounding. In the above
description, if you see a flat yield curve of 0.08 for example,
then it means that the yield at all maturities is 8%.
Question: Suppose in the question above, the tuition obligations
have a Macaulay duration of 6.36 in years, and that you wish to
immunize...

You are saving money to go to graduate school. You've taken your
first job and you plan to save $628 each month into the bank
account that pays 6.69% compounded monthly for the next five years
for your grad school fund. How much money will you accumulate by
the end of year five?
Please round your answer to the second decimal without dollar
sign. e.g. 1.11

You want to go to grad school 3 years from now, and you can save
$5,000 per year, beginning immediately. You plan
to deposit the funds in a mutual fund which you expect to return 9%
per year. Under these conditions, how much will you have just after
you make the 3rd deposit, 3 years from now?

10.
Assume you have a portfolio comprising 5 zero-coupon bonds that
have 2 years to maturity and 6 zero-coupon bond with a maturity of
20 years. Assuming semi-annual compounding and that all bonds have
a face value of 100 and that the yield curve is flat at 5% pa, what
is the modified duration of this portfolio?
Group of answer choices
None of the answers provided are correct
7.752
13.711
10.732
7.609

7. Suppose that you buy a 5-year zero-coupon bond today with a
face value of $100 and that the yield curve is currently flat at 5%
pa nominal. Suppose that immediately after purchasing the bonds,
the yield curve becomes flat at 6% pa nominal. Assuming semi-annual
compounding and that the bond is sold after 3 years, what is the
annualized holding period yield on this bond?
A. 6%
B. 7.13%
C. 8.997%
D. 9.433%
E. 4.34%
8. Suppose that you...

You plan on going to school for 2 years. This venture will cost
$29,116 each year you are in school. If the interest rate is 2%,
how much money do you need today to fund this venture? Assuming
that you start today and pay tuition by the end of each year. Round
your answer to 2 decimal places.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 27 minutes ago

asked 41 minutes ago

asked 46 minutes ago

asked 50 minutes ago

asked 53 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago