Forecasting methods-last-value-averaging-moving-average

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1. Choose one of the following forecasting methods: last-value, averaging, moving-average, or exponential smoothing. Identify the conditions when the method is most appropriate to use and give an example of an application of this method.

2. Given a $1,000 face value bond that has a 8% annual coupon and 4 years to maturity with a current YTM of 10%, show that if this bond is held to Duration that the return is "immunized" against a subsequent 1% change in the YTM (increase and decrease). Show all work for credit.

Reference no: EM131855738

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