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)
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Suppose the value of your bond portfolio is $500,000. It has a duration of 13.0years. In...
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]
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8. A bond portfolio has a market value of $5,225,000. Its duration is 6.74. If the average yield on the bond portfolio increases from 5.85% to 6.20%, what is the estimated effect on the value of the portfolio?
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....
W w ullameu espalatul (1). A portfolio of two bonds. Each bond has a face value of $100. The first 4-year bond, Bl pays a coupon 10% with yield 12% (continuously compounded). The second 3-year bond, B2 pays a coupon 8% with yield 10% (continuously compounded). Estimate (a) (5 points) what is the duration of B1 and B2? (b) (5 points) what is the duration of the bond portfolio? (C) (5 points) if the yield increases by 1%, how much...
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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.
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