Question
Bond Coupon Time to Maturity (Years) Modified Duration (Years) Current Yield to Maturity Forecasted Yield to Maturity Expected Change US Treasury 6% 3 3 2%
| Bond | Coupon | Time to Maturity (Years) | Modified Duration (Years) | Current Yield to Maturity | Forecasted Yield to Maturity | Expected Change |
| US Treasury | 6% | 3 | 3 | 2% | 1% | 1% |
| IBM | 6% | 5 | 4 | 3% | 2% | 1% |
| Ford | 5% | 10 | 7 | 6% | 4% | 2% |
| GE | 8% | 20 | 11 | 9% | 6% | 3% |
| Tesla | 0% | 30 | 25 | 10% | 9% | 1% |
If your goal is to maximize the value of your portfolio, pick the bond that you would you buy in anticipation of the expected changes in yield to maturity.
Explain or show your rationale.
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Managing Business Ethics Making Ethical Decisions
Authors: Alfred A. Marcus, Timothy J. Hargrave
1st Edition
1506388590, 978-1506388595
