Today is 1 July 2021. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2017 to create this portfolio and this portfolio is composed of 385 units of instrument A and 334 units of instrument B. • Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. • Instrument B is a Treasury bond with a coupon rate of j₂ = 2.99% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2024. (c) What is the current duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume the yield rate is j₂ = 4.07% p.a. a. 2.890 O b. 4.853 ○ c. 2.426 ○ d. 5.779

Today is 1 July 2021. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2016 to create this portfolio and this portfolio is composed of 242 units of instrument A and 455 units of instrument B. Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. Instrument B is a Treasury bond with a coupon rate of j2 = 3.14% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2024.   (a) Calculate the current price of instrument A per $100 face value (today's value). Round your answer to four decimal places. Assume the yield rate is j2 =3.93% p.a.

Today is 1 July 2020. Siobhán has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhán purchased all instruments on1 July 2011 to create this portfolio and this portfolio is composed of 26 units of instrument A and 45 units of instrument B. Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. Instrument B is a Treasury bond with a coupon rate of = 4.9% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023. Calculate the current duration of Siobhán's portfolio using a yield to maturity of = 4.39% p.a. Express your answer in terms of years and round your answer to two decimal places. a. 4,34 b. 5.73 c. 6.42 d. 4.13

Today is 1 July, 2019. Siobhán has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhán purchased all instruments on 1 July 2013 to create this portfolio, which is composed of 21 units of instrument A and 41 units of instrument B. • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. • Instrument B is a Treasury bond with a coupon rate of J2=4.05% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current duration of Siobhán's portfolio using a yield to maturity of j2=4.6% p.a. Express your answer in terms of years and round your answer to two decimal places. a. 5.73 years O b. 4.19 years O c. 4.17 years O d. 6.38 years

00:07:51 Today is 1 July, 2019. Siobhán has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhán purchased all instruments on 1 July 2011 to create this portfolio, which is composed of 21 units of instrument A and 39 units of instrument B. Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. Instrument B is a Treasury bond with a coupon rate of j2=2.29% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current duration of Siobhán’s portfolio using a yield to maturity of j2=2.58% p.a. Express your answer in terms of years and round your answer to two decimal places.

Today is 15 May 2021. Stéphanie has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at j2 = 3.4% p.a. The purchase price was $99.906. The maturity date of this bond is 15 May 2023. d) Which of following statements is incorrect? O a. We can use the duration of this Treasury bond to measure its price sensitivity. O b. The duration of this Treasury bond will be higher if its coupon rate is higher. O c. The purchase price (i.e., 99.906) of this Treasury bond will increase if the yield rate at purchase is lower. O d. The purchase price of this Treasury bond will decrease, if this Treasury bond is subject to a 30% tax on interest and capital gain.

Do all 3 parts Its 1 July 2020. Greg is planning to purchase a corporate bond with a coupon rate of j2 = 1.68% p.a. and face value of 1000. This corporate bond matures at par. The maturity date is 1 July 2022. The yield rate is assumed to be j2 = 6.15% p.a. Assume that this corporate bond has a 3.69% chance of default in the first six-month period (i.e., from 1 July 2020 to 31 December 2020) and this corporate bond has a 3.01% chance of default in any six-month period during the term of the bond except the first six-month (i.e., 3.01% chance of default in any six-month from 1 January 2021 to 1 July 2022). Assume also that, if default occurs, Greg will receive no further payments at all. Australian bonds (a)    What is the expected coupon payment on 1 January 2021? a. 7.8487 b. 8.1472 c. 8.0900 d. 7.8465 (b)    What is the expected coupon payment on 1 January 2022? a. 6.9494 b. 7.8465 c. 7.6103 d. 7.5570 (c) Calculate the purchase price of this corporate bond. Round your answer to…

A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.50 percent, and the bond has a yield to maturity of 4.73 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration 12.0200

A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.45 percent, and the bond has a yield to maturity of 4.66 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) X Answer is complete but not entirely correct. Macaulay duration Modified duration 12.0670 11.5297

Today is 15 May 2020, Sue just purchased a Treasury bond with a coupon rate of j2 = 3.2% p.a. and a face value of $100 that matures at par. The maturity date of this bond is 15 May 2022. Assume that we do not know her purchase price. c) Calculate the duration of this Treasury bond. Assume the yield rate is j2 = 3.34% p.a. Give your answer in terms of years, rounded to four decimal places.