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!
Immunization with Coupon Bonds Suppose that you are managing a pension fund with obligations to make perpetual payments of $2.6 million per year to beneficiaries. The required rate of return is 16%. a. If the duration of 5-year maturity bonds with coupon rates of 12% (paid annually) is 4.0 years and the duration of 20-year maturity bonds with coupon rates of 6% (paid annually) is 7.9 years, how much of each of these coupon bonds (in $ market value) will you want to hold to fully fund and immunize your obligation? The yield to maturity on both bonds is 16%. [Hint: compute the present value and duration of liabilities first. This provides the dollar amount and target duration you will need to match with an investment in the two coupon bonds above.] (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) Holdings 5-year bond $ million 20- year bond $ million b. What will be the par value of your holdings in the 20-year coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Par value $ million.
Write a research essay on why personal financial planning/management is as an investment for the brighter future.
What are some of the important terms and concepts that managers must understand in making decisions in today's global economic environment?
Suppose that Coca-Cola is currently paying a dividend of $1.75 per share, - Calculate the price per share for Coca-Cola's stock.
What is the annual worth of a machine with an initial cost of $34,000, an annual cost of $6,000 per year, a salvage value of + $6,000, a useful life of 7 years,
Calculate the duration of a two year, $1000 bond that pays an annnual coupon of 10 percent and trades at a yield of 14 percent. what is the expected change in the price of the bond if the interest rates fall by 0.50 (50 basis points)
Dividend growth rates are of primary importance to. Fair pricing of securities is associated with the.
Correct answer that included in gross income for federal tax purposes?
The fair value of the machine is $65,900, and the remaining useful life is estimated to be 10 years.
The stock of Rand, Inc. and McNally Corp. are set to pay the same dividend today, and are projected to have the same constant growth rate in dividends for ever.
On September 15, 2008, the Collapse of Lehman Brothers had truly signalled the meltdown of Global financial markets.
Find the expected return, variance, standard deviation of a portfolio with 30% of funds invested in A and 70% invested in B.
XYZ, Inc. just paid $2.00 dividend. Dividends are expected to grow at a 20% rate for the next five years. After that, the company has stated that the annual dividend will be $2.50 per share indefinitely. The required rate of return is 10%. What is th..
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