Order For This Paper, Written Essays or Similar Assignment Help Services.

Fill the details/instructions form and checkout for your essay - pro writers; top college graduates only in less than 5 mins, NO AI—Plagiarism-free!.

Posted: May 30th, 2021

Bond Assignment | Homework For You

Select a coupon bond. The two bonds must have respectively 3 and 5 years remaining time to maturity (or at least as close as possible). You can use for this purpose main financial newspapers (Financial Times, Wall Street Journal) or databases (Datastream, Bloomberg).
Assume that the term structure of interest rates can only shift upwards or downwards (i.e., at any point of time all interest rates at all maturities can only change by equal margins). Additionally, ignore any issue related to default risk.

(a) Report clearly all bonds’ specifics and the source of your data. Then, calculate the Macaulay durations of the two bonds showing the full cash-flows working (Do not use the “duration” function on Excel; even if the quoted bond prices are given by your data-source, re-calculate them using the full cash-flow workings.) (15% mark)
(b) Suppose that you have £1 million to invest and you wish to construct a bond portfolio which is immunized with respect to a 4-year horizon. You opt for a duration-immunization. How much par of each of the two bonds do you buy?

(c) Suppose that during the first year of holding this portfolio, interest rates move: (i) up by 10 basis points; and (ii) up by 100 basis points. Show that your position is immunized by computing the change in value of your position at the 4-year horizon in each case (i) and (ii). How well is your portfolio protected against interest rate risk? Discuss and explain briefly your findings
The (brief) explanation and discussion requested for this part ( C) must be presented in the Word file ,Marking criteria will take into account clarity, correctness, rigor, efficiency, and parsimony. Overall word limit for Question 1 on the Word file must be 350 words maximum. Finance homework help

Order | Check Discount

Tags: , , , , ,

Find The Best Writers, Tutors & Assignment Experts!

2025 Special Offer! Get 20-25% Off On ALL Your Orders!

Why trust us?

Every student wants the best grades and that’s our Focus

Graduate Level Writers

Our team consists of outstanding writers who have specialized knowledge in specific subject areas and professionals experienced in academic research writing. They hold at least a graduate degree—230 with Masters and MSN qualifications, experts carefully selected and trained to ensure the best quality of our work. .

College Students Prices

We’re dedicated to bringing on board top-notch writers who can provide excellent work at prices that make sense for college students; affordable papers. Our goal? To give you the best bang for your buck without ever compromising on the quality of our essay writing services—or the content of your paper. #Don’t forget to use the DISCOUNT code in the COUPONS section of the order form before you pay!.

100% Human Written

The service guarantees that our final work is 100% original, rearched and human written expertly. We are committed to delivering plagiarism-free and AI-free work to each university/college student's 'write my paper' request. To uphold this promise, we check every draft for any possible instances of duplication, wrong citation, grammar errors and artificiality before we send it to you. Thus, you can always rely on us to write genuine and high-standard content for your essay assignments.

How it works

When you trust to place an order with Homework Ace Tutors, here is what happens:

Complete the Order Form

Please fill out our order form completely, providing as much detail as possible in all the required fields.

Assignment of Writer

We carefully review your order and assign it to a skilled writer with the specific expertise needed to handle it. The writer then creates your content entirely from scratch.

Order in Progress and Submission

You, along with the support team and your assigned writer, communicate directly throughout the process. Once the final draft is delivered, you can either approve it or request edits, paraphrasing, or a complete revision.

Giving us Feedback(review our essay service)

Ultimately, we value your feedback on how your experience went. You can also explore testimonials from other clients. Additionally, you have the option to recommend or select your preferred writer for any future orders.

Write My Essay For Me