You own a bond portfolio worth $31,000. You estimate that your portfolio has an average YTM of 6.7% and a Modified Duration of 8 years. If your portfolio's average YTM were to decrease by 5 basis points, how much would the value of your portfolio change? Round to the nearest cent. [Hint: Answer is positive if the portfolio value increases and negative if the value decreases]
You own a bond portfolio worth $31,000. You estimate that your portfolio has an average YTM...
1.A You own a bond portfolio worth $70,000. You estimate that your portfolio has an average YTM of 5.0% and a Modified Duration of 20 years. If your portfolio's average YTM were to decrease by 2 basis points, how much would the value of your portfolio change? Round to the nearest cent. [Hint: Answer is positive if the portfolio value increases and negative if the value decreases] 1.B You estimate that a company's enterprise value is $200 million. If it...
You own a bond portfolio worth $41,000. You estimate that your portfolio has an average YTM of 6.3% and a Modified Duration of 11 years. If your portfolio's average YTM were to decrease by two basis points, what would be the approximate new value of your portfolio? Round to the nearest cent.
Question 3 Homework. Unanswered You own a bond portfolio worth $51,000. You estimate that your portfolio has an average YTM of 5.9% and a Modified Duration of 14 years. If your portfolio's average YTM were to decrease by 4 basis points, how much would the value of your portfolio change? Round to the nearest cent. (Hint: Answer is positive if the portfolio value increases and negative if the value decreases] Numeric Answer: Unanswered 3 attempts left Submit Question 4 Homework....
Question 2 Homework. Unanswered A semi-annual coupon bond has MacD of 25.3 years, yield-to-maturity of 5.3%, and price of $1135.71. What is its DV01? Answer in dollars, rounded to three decimal places. Numeric Answer: Unanswered 3 attempts left Submit Question 3 Homework Unanswered You own a bond portfolio worth $51,000. You estimate that your portfolio has an average YTM of 5.9% and a Modified Duration of 14 years. If your portfolio's average YTM were to decrease by 4 basis points,...
You own a bond portfolio worth $217,913. The bonds have a weighted average duration of 10.1 years If market rates rise by 46 basis points, by how much would the bond portfolio be expected to change in value? Be sure to include the correct sign and enter your result rounded to the nearest integer
You own a bond portfolio worth $393,353. The bonds have a weighted average duration of 16.5 years. If market rates rise by 35 basis points, by how much would the bond portfolio be expected to change in value? Be sure to include the correct sign and enter your result rounded to the nearest integer.
1. An annual coupon bond has a coupon rate of 5.4%, face value of $1,000, and 4 years to maturity. If its yield to maturity is 5.4%, what is its Modified Duration? Round to three decimal places. 2. A semi-annual coupon bond has MacD of 23.6 years, yield-to-maturity of 6.6%, and price of $1071.43. What is its DV01? Answer in dollars, rounded to three decimal places. 3. You own a bond portfolio worth $31,000. You estimate that your portfolio has...
Suppose the value of your bond portfolio is $500,000. It has a duration of 13.0years. In 2 months, the interest rate increases by 0.46%. Estimate how much your bond portfolio will be worth in 2 months. (margin for error: +/- 500)
What is the percent change in the value of a bond portfolio with a modified duration of 8.25 years with a decrease in interest rates of 45 basis points?
An Fl has a $290 million asset portfolio that has an average duration of 8.0 years. The average duration of its $250 million in liabilities is 6.6 years. Assets and liabilities are yielding 9 percent. The Fl uses put options on T-bonds to hedge against unexpected interest rate increases. The average delta (d) of the put options has been estimated at -0.1 and the average duration of the T-bonds is 8.5 years. The current market value of the T-bonds is...