User Account

All Pages

Fixed income portfolio manager

Assignment Help Finance Basics
Reference no: EM133058163

John Paul is a fixed income portfolio manager. One of his clients would like to immunize a single 8-year liability of $120,000,000. The present value of this liability is $97,677,563. In order to control cost, John recommends duration matching rather than cash flow matching to immunize this liability. John has conducted some initial analysis on three bond portfolios on the market.

Portfolios

A

B

C

Market Value ($)

97,682,531

97,674,356

97,692,544

Cash flow yields

2.45%

2.55%

2.37%

Macaulay duration

7.999

8.015

7.568

Determine which portfolio is most likely immunize client's future liability and justify why the OTHER TWO PORTFOLIOS are NOT suitable 

Reference no: EM133058163

Questions Cloud

How much of the ST Notes Payable should re-classed : How much of the $2,500,000 ST Notes Payable should be re-classed to Long Term Notes Payable on the 12/31/2020 Balance sheet
Huntingon disease : What are your client's chances of having Huntingon's disease? What are the chances of a child she might have with her husband having the disease?
What the contribution margin ratio : Question - If sales total $2,800,000 and fixed costs total $550,000 and variable costs are $800,000 of sales what the contribution margin ratio
Malfunctioning cellular structures : Imagine that you are part of a research team that specializes in diagnosing disorders associated with malfunctioning cellular structures.
Fixed income portfolio manager : Determine which portfolio is most likely immunize client's future liability and justify why the OTHER TWO PORTFOLIOS are NOT suitable
Calculate the cost of goods sold and ending inventory : All purchases and sales are on account. Calculate the cost of goods sold and ending inventory using weighted average
Calculate the gain to the merger : Firm B has current value of $500 and seeks to acquire Firm T with a current market value of $100. The financial manager of Firm B believes that the two firms co
Population genetics and human evolution : Describe the Hardy-Weinberg principle. How is DNA profiling performed? What are some of novel uses of DNA profiling, other than those described in textbook
Forward versus money market hedge on receivables : Forward versus Money Market Hedge on Receivables. Assume the following information: 90-day US. interest rate = 1.0% 90-day Euro

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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