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As the bond portfolio manager you are concerned about the impact of changing interest rates on your portfolio value. Use the information below and excel
As the bond portfolio manager you are concerned about the impact of changing interest rates on your portfolio value. Use the information below and excel functions to determine the value of the current bond portfolio, the portfolio yield and the portfolio duration, this assignment you are assigned a portfolio of bonds. Assuming that interest rate changes will impact all bonds equally what is the value of the bond portfolio if interest rates increase by 0.25% or 0.5%? From the additional bonds provided, which bond, if added to the bond portfolio will help Insulate the portfolio from interest rate risk? What is the value of the bond portfolio? What is the portfolio yield? What is the duration of the bond portfolio? If interest rates increase by 0.25% what is the value of bond portfolio? If interest rates increase by 0.50% what is the value of bond portfolio
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