1.A You own a bond portfolio worth $70,000. You estimate that your portfolio has an average...
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 has $60 million debt, $15 million in cash, and there are 8 million shares outstanding, what should be its stock price? Round to one decimal place.
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1.A You own a bond portfolio worth $70,000. You estimate that
your portfolio has an average...
You own a bond portfolio worth $31,000. You estimate that your portfolio has an average YTM...
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]
Question 3 Homework. Unanswered You own a bond portfolio worth $51,000. You estimate that your 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....
You own a bond portfolio worth $41,000. You estimate that your portfolio has an average YTM...
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 2 Homework. Unanswered A semi-annual coupon bond has MacD of 25.3 years, yield-to-maturity of 5.3%,...
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,...
1. An annual coupon bond has a coupon rate of 5.4%, face value of $1,000, and...
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...
You own a bond portfolio worth $217,913. The bonds have a weighted average duration of 10.1...
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...
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.
high risk bank has an asset portfolio worth $200 million with a weighted average modified duration...
high risk bank has an asset portfolio worth $200 million with a weighted average modified duration of 1.69, and a $190 million liability portfolio with a weighted average modified duration of 1.21. to perfectly hedge this bank against interest rate risk by adjusting the asset portfolio, what is the target modified duration for the asset?
Suppose the value of your bond portfolio is $500,000. It has a duration of 13.0years. In...
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)
Problem 13-10 A university endowment fund has sought your advice on its fixed-income portfolio strategy. The...
Problem 13-10 A university endowment fund has sought your advice on its fixed-income portfolio strategy. The characteristics of the portfolio's current holdings are listed below: Bond A Credit Rating U.S. Govt. Maturity (yrs.) 3 Coupon Modified Rate(%) Duration Convexity 2.724 9.8 6.004 56.2 3.504 18.6 Market Value of Position $34,000 34,000 34,000 34,000 34,000 $170,000 10.909 128.8 a. Calculate the modified duration for this portfolio (le, Mod Do). Do not round Intermediate calculations. Round your answer to three decimal places...
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
Problem 13-10 A university endowment fund has sought your advice on its fixed-income portfolio strategy. The characteristics of the portfolio's current holdings are listed below: Bond A Credit Rating U.S. Govt. Maturity (yrs.) 3 Coupon Modified Rate(%) Duration Convexity 2.724 9.8 6.004 56.2 3.504 18.6 Market Value of Position $34,000 34,000 34,000 34,000 34,000 $170,000 10.909 128.8 a. Calculate the modified duration for this portfolio (le, Mod Do). Do not round Intermediate calculations. Round your answer to three decimal places...
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