What is the value at risk

Assignment Help Financial Management

Reference no: EM131356330

A 4-year note with annual coupon payments has a face value of $1,000 and duration of 3.65. It sells for $1012.45 and yields 5.21%. The average monthly change In the yield Is 0 basis points and the standard deviation of such changes is 23 basis points. What is the value at risk (VAR) at the 95% confidence level, to the nearest penny? The appropriate critical value is 1.65. (Record the answer as a positive value.) ________

Reference no: EM131356330

Questions Cloud

Provide a two to three sentence description of control plan : provide a two- to three-sentence description of the control plan that you believe would best address that deficiency.

Company uses cumulative voting procedures : The shareholders of Motive Power Corp. need to elect three new directors to the board. There are 14,400,000 shares of common stock outstanding, and the current share price is $10.85. If the company uses cumulative voting procedures, how much will it ..

Should chatham automotive replace the forklifts now : Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago. These cost $75 000 each, including the charging stand. In practice, it was found that they did not hold a charge as long as claimed by the manufactur..

Create an information technology project plan in word : Create an Information Technology (IT) project plan in Microsoft Word of 2,100 words, including an introduction and conclusion, and include the project proposal summary that you created in Part 1

What is the value at risk : A 4-year note with annual coupon payments has a face value of $1,000 and duration of 3.65. It sells for $1012.45 and yields 5.21%. The average monthly change In the yield Is 0 basis points and the standard deviation of such changes is 23 basis points..

Terminology-receipt of cash dividends : (Terminology) Define each of the following dates and place them in their proper order with respect to the payment and receipt of cash dividends: date of record, ex-dividend date, declaration date, and payment date.

Which portfolio is undervalued : Consider two portfolios in a single factor world. Portfolio A has a beta of 0.1 and an expected return of 13%. Portfolio B has a beta of 0.4 and an expected return of 15%. The risk-free rate is 10%. Which portfolio is undervalued?

What figures will enrique report to upper management : For reporting to upper management, he wants to present this information as a before-tax IRR. If Monterrey Meat Products pays 53% corporate taxes, what figures will Enrique report to upper management?

Dividend payout ratio : (Dividend payout ratio) Carson Electronics earned $2.4 million in net income last year and for the first time ever paid its common stockholders a cash dividend of $0.02 per share. The firm has 10 million shareholders. What was Carson’s dividend payou..

User Account

All Pages