Why would the swap described here shorten the duration

Reference no: EM133264480

Question: The following excerpt is taken from an article titled "Denver Investment to Make $800 Million Treasury Move," that appeared in the December 9, 1991, issue of BondWeek, p. 1:

"Denver Investment Advisors will swap $800 million of long zero-coupon Treasuries for intermediate

Treasuries. . . . The move would shorten the duration of its $2.5 billion fixed-income portfolio. . . ."

Why would the swap described here shorten the duration of the portfolio?

Reference no: EM133264480

Questions Cloud

Thoughts on the e-commerce market in china : What are your thoughts on the e-commerce market in China?

What should he bid : He required an 11 percent return to make that investment. What should he bid

How does this affect their argument : The two authors (Hu and Schnepf) are in a dialogue with each other. How does this affect their argument and the way that the reader receives that argument

Examining contradictions between democracy-bureaucracy : According to O'Leary, Van Slyke, and Kim (2010), Waldo placed a greater emphasis on taking a political, analytical, and philosophical stance when examining the

Why would the swap described here shorten the duration : FINANCE 6387 Texas A&M University, Kingsville Why would the swap described here shorten the duration of the portfolio?

Explain the members of the public : Your boss has a meeting with some members of the public about (select a topic from below) and you need to make him/her look smart and knowledgeable about the is

How will be beneficial for improving business processes : Having undertaken Business Process Re-engineering, GBI would like to equip and assist it's process managers in further understanding and optimizing processes.

What is the percentage change in the bonds price : FIN 752 William Paterson University What is the percentage change in the bond's price by the duration only formula? (sample answer: 2.25% or -2.25%)

Case study-unionizing amazon : Please read through the following article, and watch the corresponding video (link below), and come to class prepared to discuss the questions listed after the

User Account

All Pages