Impact of changing interest rates on your portfolio value

Assignment Help Portfolio Management

Reference no: EM131242251

As the bond portfolio manager you are concerned about the impact of changing interest rates on your portfolio value.

Use the information below and excel functions to determine the value of the current bond portfolio, the portfolio yield and the portfolio duration. this assignment you are assigned a portfolio of bonds.

Assuming that insterest rate changes will impact all bonds equally what is the value of the bond portfolio if interest rates increase by 0.25% or 0.5%?

From the additional bonds provided, which bond, if added to the bond portfolio will help insulate the portfolio from interest rate risk?

Issuer Name	Coupon	Coupons/Year	Maturity	S&P	Yield	Date	Price	Face Value	Quantity of Bonds in Portfolio	Total Value	Portfolio Yield	Portfolio Duration
Coca Cola Co	3.200%	2	11/1/2023	AA-	2.127%	10/6/2016	$ 104.12	$ 100.00	500
IBM	1.625%	2	5/15/2020	AA-	1.608%	10/6/2016	$ 100.06	$ 100.00	400
Apple Inc	3.450%	2	2/9/2045	AA+	3.707%	10/6/2016	$ 95.52	$ 100.00	900
Wal-Mart Stores Inc	7.550%	2	2/15/2030	AA	2.870%	10/6/2016	$ 151.58	$ 100.00	250
Johnson & Johnson	5.150%	2	7/15/2018	AAA	1.098%	10/6/2016	$ 107.05	$ 100.00	75

Attachment:- excel-project.xlsx

Reference no: EM131242251

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