Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Use the following information as your starting point. There are five notes and one bond. Theoretical on-the-run Treasury yields for a 1/23/18 settlement date are given with the maturity. Assume each security is priced at par. Note/Bond Maturity Yield (%) 2-Year Note 1/23/2020 2.00 3-Year Note 1/23/2021 2.20 5-Year Note 1/23/2023 2.40 7-Year Note 1/23/2025 2.60 10-Year Note 1/23/2028 2.80 30-Year Bond 1/23/2048 3.00 1)Calculate the modified duration in years for each security using the MDURATION function in excel. 2)Calculate the modified duration and convexity measure in years using the approximation in the chapter 4 notes and book (not the big formula). Use 10 basis points (0.10%) as the plus and minus change in yield. 3)Calculate the portfolio weighted average duration, convexity, and yield for two different portfolios: Portfolio 1: 22% weight in 3-year, 51.5% weight in 5-year, 26.5% weight in 7-year. Portfolio 2: 75% weight in 2-year, 15% weight in 10-year, 10% weight in 30-year. 4)Calculate the approximate percent change in price for each portfolio using duration and convexity for two scenarios: a parallel shift in all yields of -0.51 % and +0.86 %. Which portfolio has a more favorable price change and why? Discuss the difference in weighted average yield between the two portfolios. Which portfolio earns a higher return if there were no parallel shift in yields? Include your comments in the spreadsheet.
Sunset, Inc., has a book value of equity of $13,395. Long-term debt is $7,625. How much cash does the company have? What is the value of the current assets?
The claimant is expected to live an additional 20 years. Claim payments are made at yearly intervals, with the first payment to be made one year from today.
You own 40 shares of stock A, which has a price of $15 per share, and 200 shares of stock B, which has a price of $2 per share. What is the portfolio weight for stock A in your portfolio?
Assume your require a 10 percent return on your investment. If you apply the discounted payback criterion,
FIN 522 FINAL Exam. Calculate the EnV: EBITDA value for the unknown company using the data provided for the period ending August 2017
Average tax rate and Marginal tax rate
What is the relationship between discounting and compounding? What is the relationship between the present-value factor and the annuity present-value factor? What is an annuity due? How does this differ from an ordinary annuity?
What is the difference between the value of an unlevered firm and that of an otherwise identical according to (A) The M&M theory without taxes?
Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. What is the NAL of the lease?
A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$350 $50 $50 $50 $210 $210
At what constant rate is the stock expected to grow after Year 3?
Which of the following is NOT one of the steps taken in the financial planning process?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd