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 insterest 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?

Excel Project As the bond portfolio manager you are concerned about the impact of changing interest rates on your portfolio value. Use 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 insterest rate changes will impact bonds equally what is the value of the bond portfolio if interest rates increase by 0.25% or 0.5%? From the additional bond provided, which bond, if added to the bond portfolio will help insulate the portfolio from interest rate risk? Issuer Name Boeing Amazon Starbucks Costco Nordstrom Coupon 3.300% 4.800% 4.300% 1.700% 7.000% Coupons/Year 2 2 2 2 2 Maturity 3/1/2035 12/5/2034 6/15/2045 12/15/2019 1/15/2038 S&P A AAA A+ BBB+ Yield 3.391% 3.631% 3.712% 1.645% 5.765% What is the value of the bond portfolio? Answer: What is the portfolio yield? Answer: What is the duration of the bond portfolio? Answer: If interest rates increase by 0.25% what is the value of bond portfolio? Issuer Name Yield Price Total Value Boeing Amazon Starbucks Costco Nordstrom Answer: If interest rates increase by 0.50% what is the value of bond portfolio? Issuer Name Yield Price Total Value Boeing Amazon Starbucks Costco Nordstrom Answer: If you wanted to reduce the interest rate sensitivity of your bond portfolio which of the following bonds would you buy? W Issuer Name Coupon Coupons/Year Maturity S&P Yield Expedia 7.456% 2 8/15/2018 BBB2.082% Paccar 2.200% 2 9/15/2019 A+ 1.815% Weyerhaeuser 6.950% 2 10/1/2027 BBB 3.771% Answer: rates on your portfolio value. Use the olio, the portfolio yield and the insterest rate changes will impact all or 0.5%? From the additional bonds interest rate risk? Date 10/17/2017 10/17/2017 10/17/2017 10/17/2017 10/17/2017 $ $ $ $ $ Price 98.81 114.49 110.00 100.12 114.63 ollowing bonds would you buy? Why? Date Price 10/17/2017 $ 104.38 10/17/2017 $ 100.73 10/17/2017 $ 126.17 Face Value $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 Quantity of Bonds in Portfolio 500 400 800 330 270 Total Value Portfolio Yield Duration Portfolio Duration Years to Maturity