Calculate change in portfolio

Assignment Help Finance Basics
Reference no: EM132999096

A bond portfolio is given with a modified duration of 3,12 and modified convexity of 5,01. YTM for the portfolio is 8,36%. Calculate change in portfolio (in % points) caused by the change in YTM to 8,16%. Explain which features of a bond increase its duration

Reference no: EM132999096

Questions Cloud

Describe the notion of an exchange traded fund : Describe the connections and differences between CAPM and the single-index model?
Identify and describe four audit risks : Using the information provided, identify and describe four audit risks and explain the -auditor's response to each risk in planning the audit of Melvin Co
How much journal entry to record transaction includes debit : The fair value of the land on the same date was valued at P10,000,000. The journal entry to record this transaction includes a debit to Land for how much?
Calculate an expected rate of return for company a : An investor identifies three factors affecting the share price of company A. The data with regard to the factors are as follows:
Calculate change in portfolio : Calculate change in portfolio (in % points) caused by the change in YTM to 8,16%. Explain which features of a bond increase its duration
Before the fukushima nuclear accident : The Modigliani-Miller theorem states that a company's capital structure is not a factor in its value.
What is the capitalized cost of the machinery for bts inc : The machinery is estimated to be used for 5 years and has an estimated dismantling cost of P300,000. What is the capitalized cost of the machinery?
What amount of joint costs allocated to commercial building : Assuming no further processing work is done after the split off point, the amount of joint costs allocated to commercial building lumber (CBL)
Why it is important for all of us to learn finance : A. Define finance. Is finance an art or science? Justify your opinion.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the internal rate of return

A client has requested advice on a potential investment opportunity involving an income-producing property. She would like you to determine the internal rate of

  At what price will your bond be sold

(Interest rate risk) Two years ago your corporate treasurer purchased for the firm a 20-year bond at its par value of $1,000. The coupon rate on this security.

  Trading and finance

TRADING AND FINANCE

  What would be? rally share? price

Without the increase in? leverage, what would be? Rally's share? price?

  What amount must the parents now invest

If the trust fund will earn nominal annual discount rate of 12% compounded quarterly, what amount must the parents now invest in the trust fund?

  Relaxation of credit standards

Lewis corporation is planning relaxing its credit standards to increase its currently sagging sales. As a result of the proposed relaxation, sales are expected to increase through 10 percent from 10,000 to 11,000 units during the coming year.

  Compute the probabilities using standard normal distribution

1. Z is a standard normal random variable. Compute the following probabilities using standard normal distribution. You can find the table in Appendix section.

  Estimate the cost of the receiveables loan to johnson

Estimate the cost of the receiveables loan to Johnson when the firm borrows the $300k. The prime rate is 11%.

  Calculate the current share price

Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off.

  Question based on bonds and their valuation

Question based on bonds and their valuation and Both bonds must sell for the same price if markets are in equilibrium

  How does the the fedex company manage the capital

FedEX is a Multi National Corporation (MNC) that operates in the caribbean; answer the following question in 500 words or less.

  Calculate the working capital

Their inventory balance is 2,500. Calculate the working capital. (Answer in whole $s with no comma or $ sign needed, e.g. xxxxx or 12500)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd