Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 408 Weeks Ago, 4 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 11 Jun 2017 My Price 11.00

measure used by investor

Respond to the question selected by your instructor giving real-world examples to support all your answers.What does duration measure and how is the measure used by investors? How would you assess interest rate risk when investing in bonds? Discuss two macro variables that affect changes in interest rates. If you watch these variables, could you predict interest rate movements, even if only approximately? Write your answer to the question in approximately 600 words formatted in the current APA style. All written assignments and responses should follow APA rules for attributing sources.Respond to the question selected by your instructor giving real-world examples to support all your answers.

What does duration measure and how is the measure used by investors? 

How would you assess interest rate risk when investing in bonds? 

Discuss two macro variables that affect changes in interest rates. If you watch these variables, could you predict interest rate movements, even if only approximately? 

Write your answer to the question in approximately 600 words formatted in the current APA style. All written assignments and responses should follow APA rules for attributing sources.

 

 

Due is Friday  04/06/2012 time 8:00 pm dallas tx time 

 

Assignment number 2

Bond Prices and Yields: Problems 12, 13, 15

12. You own a fixed-income asset with a duration of five years. If the level of interest rates, which is currently 8%, goes down by 10 basis points, how much do you expect the price of the asset to go up (in percentage terms)?

 

13. Rank the interest rate sensitivity of the following pairs of bonds.

A .Bond A is an 8% coupon, 20-year maturity bond selling at par value.Bond B is an 8% coupon, 20-year maturity bond selling below par value.

B .Bond A is a 20-year, noncallable coupon bond with a coupon rate of 8%, selling at p ar. Bond B is a 20-year, callable bond with a coupon rate of 9%, also selling at par.

 

15. You will be paying $10,000 a year in tuition expenses at the end of the next two years. Bonds currently yield 8%.

a.What is the present value and duration of your obligation?

b.What maturity zero-coupon bond would immunize your obligation?

c.Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 9%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? What if rates fall to 7%?

 

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Jun 2017 08:06 PM My Price 11.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â-----------  -----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------. P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)