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2. You are the financial advisor of a rich seykh, and suggested him to invest in Turkish treasury bonds. He bought TL 10 000 000

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2. You are the financial advisor of a rich seykh, and suggested him to invest in Turkish treasury bonds. He bought TL 10 000 000 of bonds 2 years ago, with 5 year maturity, 12% interest, and semiannual interest payments. a. What is the value of its portfolio of Turkish bonds today, if the current rate of interest is 10% in the market? b. An 4% increase in interest rate is expected a year from now due to current account deficit, please advise him about his bond portfolio today, referring to market expectations. Also calculate the expected value of bonds a year from now. c. Please draw a graph for these bonds value, starting from the issuing time (2 years before today), incorporating the facts in parts a and b, and fluctuating interest rates in the remaining life of the bond until maturity. 2. You are the financial advisor of a rich seykh, and suggested him to invest in Turkish treasury bonds. He bought TL 10 000 000 of bonds 2 years ago, with 5 year maturity, 12% interest, and semiannual interest payments. a. What is the value of its portfolio of Turkish bonds today, if the current rate of interest is 10% in the market? b. An 4% increase in interest rate is expected a year from now due to current account deficit, please advise him about his bond portfolio today, referring to market expectations. Also calculate the expected value of bonds a year from now. c. Please draw a graph for these bonds value, starting from the issuing time (2 years before today), incorporating the facts in parts a and b, and fluctuating interest rates in the remaining life of the bond until maturity

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