deidrabenson1831 deidrabenson1831

21-12-2022
Business

Answered

you are managing a portfolio of $1 million. your target duration is 10 years, and you can invest in two bonds, a zero-coupon bond with maturity of five years and a perpetuity, each currently yielding 6.0%. what weight of the perpetuity will you hold to immunize your portfolio?

Answer :

Other Questions

co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 6%, what is the cur

a bond pays a $55 coupon once per year. the bond has a face value of $1,000 and matures in 5 years. spot rates are as follows. under the expectations hypothesis

the free cash flow to the firm is $400 million in perpetuity, the cost of equity equals 14%, and the wacc is 10%. if the market value of the debt is $1 billion,

54. an investment grows from $100.00 to $150.00 or 50% over five years. what annual increase gives a 50% increase over five years?

Fells wargo bank has deposits of $750 million. It holds reserves of $20 million and government bonds worth $20 million. If the bank sells its loans at market va

Stock a has an expected return of 20%; stock b has an expected return of 5%. What is the expected return on a portfolio is comprised of 67% of stock a and 33% o

your marketing objective is to build awareness. what audience solutions should you consider using in your video campaign?

nancy cardoza invested $2,450 in exxonmobil stock because her research indicated the company should average an 8 percent return for investors over the next 4 ye

You plan to set aside $500 for 5 years. The account pays annual interest of 8 percent, compounded quarterly. The ending balance (principal plus interest) will b

Roger’s home originally cost him $165,000. for the first six years he lived there, his house grew in value at a rate of 1.6% per year. after that, his property