1.Calculate portfolio yield composed of the entire bond in Texas utilities, Transamerica, United airline, and Litton Industry. Assume the four bonds respectively have maturity of 4, 5, 6 and 7 years .To calculate portfolio yield you need to estimate price of each bond assuming respective yield, coupon in the exhibit with the maturity that is given. Use the total market value as an input in excel. Use the cash flows from the entire bond portfolio for 7 period as your input into IRR.

2. Calculate the terminal value of the above portfolio assuming the proceeds from the portfolio is invested at 3, 4. and 4.5 percent.

3. Consider Caterpillar bond in the (Bloomberg). Assuming caterpillar has maturity of 12 years, Par value, coupon, and yield to maturity as specified in the Bloom berg. The proceeds (cash flows) from the bond are expected to be reinvested at 4.75%. Estimate realized yield.

4. Assuming the Treasury bond with 5% coupon and maturity of 12 years ( is callable after 4 year at 101.50 (first call date) per 100 face value. This bond is also callable after 7 years (2nd call date) at par all else remaining the same. Estimate yield to worst call for the treasury bond all else remaining the same

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