Question
Assume You have two bonds with the following data: Current MV of the first is 100$ Yield 2% maturing in 2 years Current MV of
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Assume You have two bonds with the following data:
Current MV of the first is 100$ Yield 2% maturing in 2 years
Current MV of the first is 150$ Yield 3% Maturing in 3 years
Assuming a continuous model what will be the returns of this portfolio if the first yield will rise by 50 bps ( new Yield is 2.5%) and the second yield rises by 1% ( new Yield is 4%)
Hint: Calc the returns of the bond seperately and then do weighted average
-1.9%
-2.18%
-2.6%
NONE OF THE ABOVE
Assume You have two bonds with the following data:
Current MV of the first is 100$ Yield 2% maturing in 2 years
Current MV of the first is 150$ Yield 3% Maturing in 3 years
Assuming a continuous model what will be the returns of this portfolio if the first yield will rise by 50 bps ( new Yield is 2.5%) and the second yield rises by 1% ( new Yield is 4%)
Hint: Calc the returns of the bond seperately and then do weighted average
| -1.9% | ||
| -2.18% | ||
| -2.6% | ||
| NONE OF THE ABOVE |
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Financial Modeling Using Excel And VBA
Authors: Chandan Sengupta
1st Edition
0471267686, 978-0471267683
