Explore BrainMass
Share

# Preference of Bond and Justification

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Consider the following bonds:
a. [7] What is the duration of a five-year bond with a 6.5 percent semiannual coupon if the yield to maturity (ytm) is 7.125%?

b. [3] What is the duration of a 20-year zero coupon bond with a yield to maturity of 7.625%

c. [2] You expect a sudden, but widely unanticipated, increase in the market rates of interest due to a change in position by the Federal Reserve. Would you rather be holding in your asset portfolio the bond from a. above (BOND A) or the zero from b. above (BOND B)? Which bond would you prefer, and why?

#### Solution Preview

See the attached file. Thanks

"Consider the following bonds:
a. What is the duration of a five-year bond with a 6.5 percent semiannual coupon if the yield to maturity (ytm) is 7.125%?
"
The cash flow are
Coupon Rate 6.5%
Coupon payable Semi-Annual 2
Time to maturity 5 Years
Yield to Maturity 7.125%
Face Value of Bond \$1,000

Cash Flows
t CFt t*CFt

1 \$32.50 \$32.50
2 \$32.50 \$65.00
3 \$32.50 \$97.50 ...

#### Solution Summary

This post shows how to determine the duration of a bond with step-by-step calculations in excel format.

\$2.19

## STABILITY AND CHANGE IN ANTISOCIAL BEHAVIOR: THE TRANSITION FROM ADOLESCENCE TO EARLY ADULTHOOD

Summarize the attached journal article using these questions.

Q1. What is a summary of the research study? Does delinquency behavior spills over into young adulthood?

Q2. What theoretical approach did the author utilize? Latent trait and life course models (Page 371)?

Q3. What is the hypotheses being tested? (Page 375). Is there a positive relationship between adolescent involvement in delinquency and adult involvement in criminal behavior. There is a negative relationship between adolescent involvement in delinquency and social bonding in both adolescence and adulthood. The relationship between adolescent delinquency and adult criminality will be attenuated when adult social bonds are statistically controlled.

Q4. What are the results of study?

Q5. What are some strengths and weaknesses of the study?

View Full Posting Details