An institutional investor who manages the pension fund for a company in the telecommunications sector, which has 120 employees, manages a portfolio of bonds with the following characteristics:

Bond	Price per bond	Nominal Value	Coupon Rate	Payment frequency	Maturity term (years)	YTM	# Bonds
A		$100	9.50%	quarterly	3	8.50%	130
B		$100	0%	0	5	10%	35
C	$40	$50	10%	Annually	10		200

a) Calculate the price at t=0 of each type A bond.

• $92.59

• $97.45

• $98.72

• $100.66

• $102.62

b)Calculate the price at t=0 of each type B bond.

• $62.09

• $68.06

• $69.66

• $74.73

• $75.92

c) Calculate the annual effective yield to maturity (YTM) of each type C bond.

• 7.13%

• 8.48%

• 10.63%

• 11.75%

• 13.81%

d)Calculate the PBVP (Price Value of a Basis Point) of a type A bond.

• 0.0245

• 0.0236

• 0.0251

• 0.0254

• 0.0266

e)Using the modified duration of the portfolio, approximate the percentage change in the value of the portfolio if the annual nominal required return decreases by 100 basis points.

• 4.1864%

• 4.2401%

• 4.2524%

• 4.4759%

• 4.5390%