Friday
March 27, 2015

Homework Help: Finance

Posted by Danielle on Saturday, April 10, 2010 at 2:16pm.

You will be paying $11,000 a year in tuition expenses at the end of the next two years. Bonds currently yield 11%.
What maturity zero-coupon bond would immunize your obligation?

I found the duration, but am having trouble finding the face value.
Duration: 1.4739
Face Value: ?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

finance - 1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual ...
investing - You work for an insurance company. You have an obligation to pay $1 ...
FINANCE - Current yield and yield to maturity A bond has a $1,000 par value, 10 ...
Finance - 2. You are now considering adding a corporate bond to your investment ...
Duration - Find the duration of a 6% coupon bond making annual coupon payments ...
Finance - 1.You buy a SML Bond for $980. The bond has a face value of $1000 and ...
accounting - As in previous homework, assume you work for a company that has to ...
Finance - A 20-year, $1,000 par value bond has a 9% annual coupon. The bond ...
finance - Coles Inc's bonds currently sell for $1,180 and have a par value of $1...
Finance - Some institutional investors prefer zero coupon bonds over coupon ...

Members