What would you like to do?

How is Modified Duration calculated for a Zero Coupon Bond?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

3 years zero coupon bond. face value $100 and present market value $75. What will be its Macualay Duration and Modified Duration?
Thanks for the feedback!

Why is duration of bond important?

Duration is the weighted average number of years necessary to recover the initial cost of the bond • It allows comparison of effective lives of bonds that differ in maturi

What is so special about Zero Coupon Municipal Bonds?

Zero Coupon Municipal Bonds are special because, unlike other bonds, they have no periodic interest payments. Rather, the investor receives one payment at maturity. This payme

How do you calculate leaf area duration LAD?

LAD= [(LAI1 + LAI2)/2] x Number of days LAI is Leaf Area Index. That number is usually given, if not it can be found by Leaf Surface Area/Soil Surface Area.

Distinguish between deep discount bond and zero coupon bond?

the main difference between deep discount bond and zero coupon bond  is that in case of zero coupon bond no int is payable periodically  while in case of deep discount bond

How do you calculate modified system 36 point?

System 36 is normally based on handicap of the day. However when a tournament uses System 36 Modified, the organisers need each golfers DECLARED handicap. They then calculate

What is the relationship between coupon rate and bond price?

The Bond price is the amount of the bond when it becomes mature. The coupon rate is the amount of interest payable on the bond. Bonds have three major components The first

How did Kelvin calculate absolute zero?

This is just the rough answer, as I am looking for more details myself... but Kelvin was trying to discover at what temperature the ideal gases turned to liquid (He, H, etc),

Can you compute the price of a 5-year zero coupon bond from 2 5 year coupon bonds?

Five-Year Zero Coupon     If the 2 5 years are exactly the same with the exception of having coupons (same lender, same claims, same everything) then yes you should b

How do you get coupons?

Coupons are available with numerous online websites, Coupons help  you to save money and purchase products at discounted price.   Buy using online coupons and deals, you

What is the taxation of zero coupon bonds held to maturity?

Zero coupon bonds issued by the US Treasury are issued at a  discount to face value. An investor holding zero coupon bonds is  paid the full face value when the zero coupon