suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $83. what was the dividend yield and the capital gains yield?

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Answer 1

Suppose a stock had an initial rate of $ 74  consistent with the share and paid a dividend of $1.65 consistent with a percentage at some stage in the year.

The capital gain Yield is 12.16%

The dividend Yield is 2.23%

The capital benefit Yield is 12.16%

A stock is a widespread term used to explain the ownership certificate of any employer. A proportion, on the other hand, refers back to the inventory certificate of a particular agency conserving a specific organization's percentage makes us a shareholder. Description: shares are of kinds not unusual and favored.

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Related Questions

Which of the following is NOT an element considered in the design of a store?
A. Layout
B. Signage
C. Graphics
D. Attention getting feature areas
E. Recruitment

Answers

Recruitment is not an element considered in the design of a store.

What is a store's design?

A business's floor plan and the positioning of its merchandise make up the store layout. When done well, store layout can have a significant impact on a customer's behavior, making it a crucial tactic for a company's success. Shape, color, space, form, line, value, and texture are among the basic components of any visual design or elements of design.

Together, these design concepts produce aesthetically beautiful products that enhance user experience. Site layout: This diagram illustrates how the building ought to be positioned. The department sizes in each block are displayed. Shows how furniture and workstations are arranged in the various departments in a detailed layout. Displays the layout of a workstation.

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when presenting your reason or explanation in a bad-news letter, when is it appropriate to be specific?

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So if u subtract 5-5 u get 0

which one of the following items is not a component of contributed capital? select one: a. preferred stock b. retained earnings c. common stock d. additional paid-in capital e. all of the above

Answers

A component of contributed capital are not the retained earnings. Thus, option (b) is correct.

What is contributed capital?

The amount of money that stockholders put in a firm in exchange for newly issued shares of stock is referred to as contributed capital. Contributed capital, also known as terms of investment, refers to money and other assets donated to a corporation by stakeholders in exchange for a share.

The basic components of contributed capital are ordinary shares, preference shares, and additional capital; however, net profit were not included. The retained earnings are calculated using the industry's indirect and direct expenses.

Hence, the significance of the contributed capital, are the aforementioned.

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Other things equal, which of the following might shift the demand curve for gasoline to the left? A. the development of a low-cost electric automobile B. a large decline in the price of automobiles C. the discovery of vast new oil reserves in Montana D. an increase in the price of train and air transportation

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The demand curve of gasonline may shift to the left because of the development of a low-cost electric automobile (A).

Demand curve represents athe relationship between the product price and the quantity demanded for a given period of time. Demand curve can shift to the left and right depending on the market condition. The shift of demand curve can be caused by changes in tastes, population, income, price of subtitute or complementary goods, and market expectation about future conditions and prices.

Let's discuss every scenario we have.

The development of a low-cost electric automobile might shift the demand curve for gasoline to the left. A low-cost electric automobile is the subtitute product of a regular gasoline-based automobile, which is the main contributor for demand of gasoline in the market. When the market shifts its preferrences from the gasoline-based automobile to a low-cost electric automobile, the demand for gasoline will also be shifted to the left.

A large decline in the price of automobiles will raise the demand for gasoline in the market. Many people will increase their purchase of automobile because of the decline in the price. An increase in the automobil will lead to the increase of the gasoline demand and shift the demand curve to the right. It happens because automobile is the main contributor for the gasoline use.

The new discovery of vast new oil reserves in Montana will increase the gasoline supply in the market. The supply curve will be shifted to the right because the gasoline price would be cheaper since the quantity of gasoline supplied increase. The shift in the supply curve will also move the demand curve to the right where people will try to purchase their spending on the available products.

An increase in the price of train and air transportation will indirectly shift the demand curve for gasoline to the right. Train and air transportation as the subtitute of gasoline main user, gasoline-based automobile, will face decrease in their demand since the price increase. Directly, the decrease of the train and air transportation demand will affect the demand of gasoline-based automobile, then affecting the demand for gasoline as well.

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elaine's original basis in the hornbeam partnership was $40,000. her share of the taxable income from the partnership since she purchased the interest has been $70,000, and elaine has received $80,000 in cash distributions from the partnership. elaine did not recognize any gains as a result of the distributions. in the current year, hornbeam also allocated $1,000 of tax-exempt interest to elaine. calculate elaine's current basis in her partnership interest. $fill in the blank 1

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Elaine's original basis in the Hornbeam partnership was $40,000. Her share of taxable income has been $70,000 and her cash distribution from the partnership is $80,000. Hornbeam allocated $1,000 of tax-exempt interst to Elaine. Elaine's current basis in her partership interest is $31,000.

Partnership interest is the percentage of a parternship owned by a member or individual. The interest represents each partner's right to make business decisions.

The basis of a partnership interest is the amount of cash plus the adjusted basis of any contributed property.

In Elaine's case, her original basis is $40,000. Her share of the taxable income is $70,000 and she has received $80,000 in cash distributions. Elaine then receive $1000 of tax-exempt interest. Then, Elaine's current basis in her partnership interest is:

Partnership interest basis = Original basis + Taxable income - Cash distributions + Tax-exempt interest

Partnership interst basis = $40,000 + $70,000 - $80,000 + $1,000

Partnership interest basis = $31,000

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how did ceo dismissals related to ethical concerns change between 2008 and 2018? multiple choice question. fewer ceos were fired for misconduct. more ceos were granted immunity. no ceos were fired for misconduct. more ceos were fired for misconduct.

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The answer is: more ceos were fired for misconduct.

What is misconduct?

Cheating is any wrong, inappropriate, or unlawful act motivated by deliberate or deliberate intent or by a stubborn indifference to the consequences of one's actions. Actions that are prohibited or neglected to do what is required. Cheating can harm the health and well-being of others.

Fraud is of particular concern in professional settings (lawyers, doctors, military personnel, etc.), workplaces, and various institutions (schools, prisons, etc.). Cheating comes in her two categories: sexual cheating and public cheating. In the context of school discipline, "misbehavior" is commonly taken to mean student behavior that does not violate criminal law, but is unacceptable to school officials, such as absenteeism, tardiness, bullying, and inappropriate language. understood. Misconduct at work generally he falls into two categories. Minor misconduct is considered unacceptable but not a crime (e.g. tardiness, misrepresentation of eligibility). Serious misconduct can lead to immediate dismissal as it can be serious and punishable.

Therefore, The answer is: more ceos were fired for misconduct.

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Which of the following by definition directly adds to a country's GDP (gross domestic product)? Click or tap a choice to answer the question.

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option D Increased commercial travel directly adds to a country's GDP(gross domestic product).

This activity will have a direct impact on the GDP because it is directly a component of the personal/ private consumption. The money spent on travelling by people on commercial flights generates direct revenue for the country and thus it holds a direct influence on the gdp. Gross domestic product (GDP) is the most commonly used calculate the size of an economy. GDP can be compiled for a country, a region or for many countries together, as the case of the European Union (EU).India's Central Statistic Office calculates the nation's gross domestic product (GDP).  GDP is calculated with two various ways, one based on economic activity (at factor cost), and the second is expenditure.

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The complete question is:

Which of the following by definition directly adds to a country's GDP (gross domestic product)? Click or tap a choice to answer the question.

A - Growing population

B - Increased government borrowing

C - Discovery of untapped oil reserves

D- Increased commercial travel

Personal finance questions, answers in complete sentences please. Any help is appreciated :)


1. Define FICO score here: (What does a high or low score show? What is FICO abbreviation for?)


2. Can missing a payment on credit cards, check into cash loans, or rent payments affect your Credit Score? If yes, why?


3. Will credit pulls (hard pulls) affect your credit score?


4. Borrow as little as possible and pay it in full on time wil effect your credit score in what way?


5. Will staying under 30% of your credit limit help your credit score?

Answers

1. The FICO Score is used by lenders to make fast credit risk decisions

The abbreviation means Fair Isaac Corporation.

2. Missing a payment on credit cards, check into cash loans, or rent payments affect your credit score in a negative way.

3. A hard credit inquiry could lower your credit score by as much as 10 points

4. Borrow as little as possible and pay it in full on time wil effect your credit score in a positive way.

5. Yes. Staying under 30% of your credit limit help your credit score.

What is the credit score about?

Lenders use the FICO Score to help them make accurate, dependable, and timely credit risk decisions throughout the customer lifecycle. The credit risk score ranks consumers based on their likelihood of meeting their credit obligations on time.

On-time payments are the most important factor influencing your credit score, so missing a payment can be painful. If you have otherwise perfect credit, a payment that is more than 30 days late can reduce your credit score by up to 100 points. If your score is already low, it will have less of an impact but will still cause damage.

Most experts advise keeping your total credit card utilization under 30%. Lower credit utilization rates indicate to creditors that you can use credit responsibly without overusing it, so a low credit utilization rate may be associated with higher credit scores.

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to say that a given welfare program is means-tested implies that: select one: a. in order to qualify, one must have the means. b. the size of the payment reflects the mean value of consumption based on family size. c. in order to qualify, one must show that one means to find a job. d. the more income one earns, the smaller the size of the benefit.

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To say that a given welfare program is means-tested implies that d: 'the more income one earns, the smaller the size of the benefit'.

The term welfare program refers to a government program that provides financial or other aid to individuals or groups of people who cannot support themselves. Welfare program helps people to cope with financial stress during rough time periods of their lives. A means-tested welfare program refers to a welfare program that is implicitly or explicitly conditional on the income of a beneficiary and/or wealth falling below a certain level. Usually, this level is determined taking into account the beneficiary's family composition.

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you've just set up an option on your website for your users to sign up for a newsletter. you want to count those new sign-up events as conversions and create an audience for users who signed up. which part of your analytics 4 property lets you manage events, conversions, and audiences?

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The part of your analytics 4 property that lets you manage events conversions, and audiences are Configure.

Conversions in  Analytics are the important actions you want users to take on your website and are considered important events for your business. Any action or interaction that occurs on your website can be tracked and flagged as a conversion event. For example, playing a video.

GA4 is a new property designed for the future of measurement. Collect data from both your website and app to better understand your customer's journey. Use event-based data instead of session-based. Includes privacy controls such as cookieless measurement behavioral and conversion modeling. Funnel exploration lets you visualize the steps your users take to complete a task.

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Which of the following statements is false? Multiple Choice
O The variance analysis cycle includes analyzing differences between actual results and what should have occurred according to the budget
O The management by exception approach enables managers to focus on the most important variances while bypassing trivial discrepancies.
O A flexible budget is an estimate of what revenues and costs should have been given the actual level of activity for the period. O O C)
O A planning budget is prepared before the period begins and it is based on the actual level of activity incurred during the period.

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A planning budget is prepared before the period begins and it is based on the actual level of activity incurred during the period.

A budget is a calculating plan, typically financial but not always, for a specific time frame, typically one year or one month. Predicted sales and revenue amounts, resource quantities (such as time, costs, and expenses), environmental impacts (such as greenhouse gas emissions), other impacts, assets, liabilities, and cash flows are all possible inclusions in a budget. Budgets are a quantitative way for businesses, governments, families, and other groups to articulate their strategic plans of action.

In a budget, intended expenses are expressed together with suggestions for how to fund them. A budget can show a surplus of resources for later use or a deficit if expenses are greater than income or other resources.

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which of the following is not required in an individual health benefit plan? a if terminated, the carrier must offer another plan offered by the carrier b it guarantees coverage for a dependent on a modified community rated basis c the renewability is at the option of the carrier d the plan may be terminated if the person moves out of state

Answers

If a person moves out of state while enrolled in an individual health benefit plan, it is not necessary for the plan to continue.

Finding new health insurance may be necessary if you move to a different state because certain policies may expire or stop providing coverage when you do.

It is still advisable to check the system of in-network providers even if coverage transfers. An extension of coverage may be available under the Consolidated Omnibus Budget Reconciliation Act (COBRA) program if health insurance coverage expires due to an interstate move.

Finding health insurance is now simpler according to the Affordable Care Act of 2010.

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What work experience can year 10s do

Answers

I think nights stocking

The work experience can year 10s do research positions, volunteer work, and the creation of the company.

What is experience?

The term experience refer to learn the things and the knowledge. The experience are the necessary to the human life. The experience are the help in the future challenges. The experience are the built-in the human nature are the day to day. The experience is to learn bad and the good things.

According to the work experience, was the necessary of the human life. The work experience as the change the attitude and the behavior. The work experience on the particular field as the higher on the position to the work. The work experience of the person as the research positions, volunteer work, and the creation the company.

As a result, the work experience can year 10s do research positions, volunteer work, and the creation of the company.

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Which of the following does not cause a shift in the demand curve?

A. changes in the price of related goods

B. changes in consumer patterns

C. changes in the price of the goods

D. changes in personal preferences

E. changes in the income of buyers

Answers

Option c changes in the price of the goods do not cause a shift in the demand curve.

The demand curve is a graphical depiction of the connection between the cost of a commodity or service and the quantity required over a specific time period. The cost will often be shown on the left vertical axis, while the quantity required will typically be shown on the horizontal axis.

While a change in a good or service's price usually results in some change in the quantity demanded, it does not cause the demand curve to shift. Instead, it causes movement along a particular demand curve.

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Corporations can raise large amounts of money because:

shares of stock can be purchased in small amounts, so even small investors can participate.

investors always prefer to invest in stock so they can receive dividends.

stocks are always a good investment.

investing in the stock market is the surest way to get rich quick.

Answers

Because shares of stock can be bought in tiny increments, even novice investors can take part in corporate fund-raising efforts.

What do you mean by corporations?

A corporation is a business entity whose shareholders elect a board of directors to run its affairs. The corporation, not the shareholders, is in charge of the company's activities and financial situation. a large company run by a collection of companies as a single unit: a multinational corporation. UK Broadcasting Corporation

What is the importance of corporations?

In order to create value over the long term, a corporation must conduct legal, moral, profitable, and sustainable business practises. This necessitates taking into account the stakeholders who are essential to its success (shareholders, employees, customers, suppliers, creditors, and communities), as determined. A corporation protects its owners' personal assets from liability more than any other type of entity. For instance, even if a company's assets are insufficient to cover its debts, its investors will not be held personally liable in the event of a lawsuit.

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economies of agglomeration refer to multiple choice vertical integration of economic production. the comparative advantage of transnational corporations. the spatial orientation tendencies of bulk-gaining secondary activities. clustering of firms to take advantage of shared infrastructure, services and skilled workers.

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Economies of agglomeration refer to clustering of firms to take advantage of shared infrastructure, services and skilled workers. The correct answer would be option D.

Agglomeration economies, also known as external economies of scale, are advantages of concentrating housing and economic activity in specific places. All businesses can profit from a variety of characteristics, including good supply networks, a supply of trained personnel, infrastructure designed expressly for the industry, and good transport links, if a region specializes in the manufacturing of a particular sort of products.

Agglomeration economies cause people and businesses to frequently concentrate in specific places. People frequently relocate to cities, where there is a wider range of employment opportunities, social opportunities, and specialized services.

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the yield curve is based on pure discount instruments, whereas the term structure is based on coupon bond

Answers

The yield curve aids traders in their comprehension of the bond market. For instance, when interest rates are examined in relation to their tenor, it aids analysts and investors in making market assessments on the potential returns on investments in both short-term and long-term bonds.

When the yield curve is flat, what happens?

This stage never lasts for very long since the yield curve quickly reflects the economic picture that the market has decided upon. When the yield curve is flat, you should purchase bonds with the lowest level of risk because investing in high-risk bonds would not benefit you in terms of yield.

What does "yield curve" mean?

The interest rates of bonds with similar credit quality but different maturity dates are plotted on a line called a yield curve at a specific point in time.

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question content areawhich of the following is not classified as a current liability account? a.accounts payable b.note payable, due in 2 years c.salaries and wages payable d.income taxes payable

Answers

Notes payable due in 2 years is not classified as a current liability account because it is for more than 2 years' time period.

What is current liability?

A company's short-term financial commitments that are due in a year or within a typical operational cycle are known as current liabilities. Commonly, current assets—assets that are depleted within a year—are utilised to settle current liabilities.

Current obligations are shown on the balance sheet and are paid from the profits made by a business's operations. Accounts payable, short-term debt, accumulated expenses, and dividends payable are a few examples of current obligations. An obligation that must be paid off immediately is referred to as a current liability.

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Which of the following best represents the options a company has when a product is declining? A) maintain or harvest the product
B) harvest or drop the product
C) maintain, harvest, or drop the product
D) maintain or pioneer the product
E) pioneer, harvest, or maintain the product

Answers

When a product is declining, the options that a company has include C) maintain, harvest, or drop the product.

What happens when a product is declining ?

When a product disintegrates as a result of slowing down or experiencing negative growth, it enters the decline stage of its life cycle.

Because of the most recent technology developments, modifications in customer wants, and impending trends, competition becomes too intense and sales decline. The sales rate decreases until maintaining the project is no longer financially feasible for us.

Due to increased competition or declining consumer demand, brands will see a fall in sales during the decline stage. This period is challenging to get through; often, businesses will either sell their business, cease their product, or find new ways to improve their product in an effort to boost sales.

This means that the company would therefore have the options of either maintaining the product, harvesting it, or dropping it.

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the term circular economy refers to: multiple choice a production process that starts with raw materials, to product, usage, and disposal. the cradle to grave cycle. a production system that is regenerative by design. extended product responsibility.

Answers

A production process that is intended to be regenerative. The correct answer is option (c).

What is Circular economy?

A circular economy is a way of producing and consuming goods that prioritises sharing, renting, reusing, repairing, and recycling already manufactured goods for as long as feasible. The circular market model actually promotes development, in contrast to many environmental models that advocate decrease in order to attain zero waste.

It represents a shift from the current model in which materials are extracted, turned into goods, and then thrown away. In a circular economy, resources are used less often, materials, goods, and services are redesigned to use less resources, and "waste" is recovered and used as a resource to create new goods and materials.

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a company had $14 missing from petty cash that was not accounted for by petty cash receipts. the correct procedure is to:

Answers

The correct procedure would be to debit cash over and short for the difference of $43.

A debit is an accounting transaction that lowers liabilities or increases assets.All debits are made on the left side of the ledger in double-entry bookkeeping, and these debits must be balanced by corresponding credits on the right side of the ledger.A balance sheet credits negative balances and debits positive values for assets and expenses.In a typical journal entry, all debits are listed on the top lines, followed by all credits on the line below the debits. A debit is on the left side of the chart when using T-accounts, and a credit is on the right. The trial balance and adjusted trial balance both use debits and credits to make sure that all entries balance.

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Which of the following is the most used monetary policy tool? a.
Changing the discount rate
b.
Interest rate changes
c.
Changing reserve requirements
d.
Open-market operations

Answers

The six instruments of monetary policy are the reverse repo rate, the reverse repo rate, open market operations, the bank rate policy (discount rate), the cash reserve ratio (CRR), and the statutory liquidity ratio (SLR).

Which tool for monetary policy is the most crucial?

Operations in the open market A monetary policy uses a variety of tools, including open market operations, requirements for bank reserves, and the discount rate, to accomplish macroeconomic objectives.

What are the goals of financial instruments?

The Fed utilises monetary policy tools to promote economic growth while regulating the availability of money and total demand for goods and services. By influencing the amount of money available to consumers, businesses, and banks, monetary policy instruments can regulate the overall amount of money in circulation.

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on the income statement, which of the following would be classified as a period cost? A) Direct Labor B) Direct Material C) Promotion Expense D) Inventory Carry Expense

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On the income statement, the statement that would be classified as a period cost is: C) Promotion Expense.

What is period cost?

Period cost can be defined as those cost that is excluded in a product cost  and this occur because the cost are  non production cost or because the cost are not related to factors of production or what is needed for production to take place.

Promotion expense has to do with the expense a company incurred as a result of promoting their product or brand.

Therefore the correct option is C.

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compute the direct materials price and quantity variances and explain their significance. compute the direct labor rate and efficiency variances and explain their significance. compute the variable manufacturing overhead rate and efficiency variances and explain their significance.

Answers

Quantity variance is a measurement you can use to investigate the distinction between what you assume to use (general amount) and what you virtually use (real amount) in the production manner. trendy gadgets are estimates based totally on the bills for substances or components.

Rate variance is the real unit fee of an item less its standard fee, improved by the number of real units purchased. the usual fee for an item is its expected or budgeted fee-based totally on engineering or manufacturing records.

For example, if you finance for income to be $10,000 and real income is $8,000, variance analysis yields a distinction of $2,000. Variance evaluation is particularly powerful while you review the amount of variance on a trend line so that unexpected adjustments in the variance stage from month to month are greater conveniently apparent.

The charge of a great carrier in a marketplace determines the amount that clients demand. Assuming those non-fee elements are removed from the equation, a better fee affects in a lower amount demanded and a decreased fee affects in higher quantity demanded.

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a data analyst has to create a monthly report for their stakeholders. what can they create to help them save time generating these reports?

Answers

The best way for a data analyst to save time generating monthly reports for stakeholders is to create automated reports.

Automated reports are generated by software applications that take data from various sources and compile it into one comprehensive report. This report can be tailored to the specific needs of the stakeholders, such as the frequency of reports, the type of data to be included, and the format in which the data is presented.

Furthermore, automated reports can be customized to include visuals, such as charts and graphs, that help stakeholders understand the data more easily. This can save the data analyst a lot of time, as they don’t need to manually compile and analyze the data each month. Automating the report generation process ensures that the data is always up-to-date and accurate.

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a company reports the following at year end: sales of $15,000; cost of goods sold $8,000; net income $4,000; average merchandise inventory $2,500. inventory turnover is calculated to be:

Answers

Inventory turnover is calculated to be 3.2. Inventory turnover is a measure of how efficiently a company is managing its inventory and turning it into sales. It is calculated by dividing a company's cost of goods sold (COGS) by its average inventory during a given period.

In this case, the company had sales of $15,000, cost of goods sold of $8,000, and an average inventory of $2,500. To calculate the inventory turnover, we will divide the cost of goods sold by the average inventory:

Inventory turnover = Cost of Goods Sold / Average Merchandise Inventory

Inventory turnover = 8,000 / 2,500 = 3.2

This means that the company has an inventory turnover of 3.2, which indicates that it is turning over its inventory 3.2 times during the year.

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the last two steps of the accounting cycle deal with

Answers

The last two steps of the accounting cycle deal with closing the books at the end of the financial year.

What comprises the final four steps in the accounting cycle?

The accounting cycle is the method used to accept, record, group, and credit payments made and received within a company during a specified accounting period. Although the accounting cycle may appear difficult, lengthy, but, it is actually rather straightforward and simple. The process consists of four fundamental steps: transaction analysis, transaction recording, adding journal entries to the general ledger, and running an unadjusted trial balance report.

Making closing entries at the conclusion of the accounting period involves settling expenses, revenues, and temporary accounts. In order to do this, temporary accounts like expenses and revenue must be closed out, and the net income must be transferred to long-term accounts like retained earnings.

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in thedigital transformation of retail video case, the speaker indicates that the ownership of digital assets in the emerging metaverse is being driven by what technology that enable the ownership of digital assets, such as gucci digital sneaker?

Answers

The Metaverse is a spatial computing platform that offers digital experiences as an alternative to or replica of the real world, as well as key civilizational aspects such as social interactions, currency, trade, economy, and property ownership

All built on blockchain technology. As marketers, we must understand that the metaverse is a disruptive technology that is constantly changing while also changing everything it touches. We can use it to change the way we advertise, our relationships with our stakeholders, the new products we create, and the economy market. A customer could hang out and shop in their avatar, experimenting with different colours, combinations, sizes, and other limitless options.

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A client, age 55, takes a $3,000 distribution from his rollover IRA to pay for a semester of college tuition for his 21-year-old son. Which one of the following correctly explains the tax consequences for the father?

Answers

The entire distribution is exempt from the 10% early withdrawal penalty, but it is subject to income tax. When funds are withdrawn to pay for higher education, there is no 10% early withdrawal penalty.

Which three kinds of retirement are there?

The majority of us undoubtedly believe that we are retirement experts. Isn't that simple? You no longer go to work every day so that you can relax at home, spend time with your grandchildren, or go on vacation. It ought to be a wonderful life, at least!

But did you know there are other choices for retirement? It exists. In point of fact, there are three distinct types of retirement:

standard retirement

Semi-retirement

Extremely durable retirement

Each type has a few critical qualifications, especially as far as your assumptions and the readiness standards you'll have to satisfy.

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Question-

A client, age 55, takes a $3,000 distribution from his rollover IRA to pay for a semester of college tuition for his 21-year-old son. Which one of the following correctly explains the tax consequences for the father?

a) The entire distribution is free from penalties and income taxes.

b) The entire distribution is subject to income tax, but it is free from the 10% early withdrawal penalty.

c) The entire distribution is subject to the 10% early withdrawal penalty, but it is free from income tax.

d) The entire distribution is subject to income tax as well as the 10% early withdrawal penalty.

a 9%, 16-year bond has a yield to maturity of 11% and duration of 9.25 years. if the market yield changes by 32 basis points, how much change will there be in the bond's price?

Answers

Bond duration is mostly determined using the Macaulay duration and the modified duration. The weighted average period before a bondholder would receive cash flows from the bond is determined by the Macaulay duration.

Modified duration =Macaulay Duration/(1+YTM) =9.25/(1+11%) =8.33

Change in Price =-Modified duration*Change in YTM =-8.33*0.32% =-2.67%

In contrast, the adjusted duration gauges a bond's price sensitivity to changes in yield to maturity.The idea of duration, or the price sensitivity of a fixed-income asset to changes in interest rates, can be approached in a few different ways.

When using an immunization strategy, portfolio managers commonly employ the Macaulay duration, which is the weighted average term to maturity of the cash flows from a bond.

A bond's modified duration, which is a modified form of the Macaulay duration, is used to determine how long a bond will last and how much it will cost for each % change in yield until maturity.

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