Calculate the one year income in both % and dollars
For this simple Simulation, you are asked to create a simulated $10,000 Bond Portfolio. To do so, go into your online subscription for the WSJ (which of course you have been reading daily all semester, provided free to you by the BC library). There, please go to the Markets section and find Bond prices. You can "purchase" Bonds listed in each of the categories, and assume that you are purchasing $1,000 face value Bonds. Your Portfolio should be laddered (short and long durations) so changes in the interest rate are not terrible for your returns. You should therefore have short term and long term Bonds in the Portfolio. You should be diversified across geographies, buying Bonds issued in the US and at least 3 other jurisdictions. Your submission for this will be an MS Excel document that you create, and should include the details of the Bonds you would purchase to meet the above requirements, including source of the bonds and their annual interest rate. Once you have your Portfolio list of Bonds, please estimate the one year income in both % and dollar terms on the total "Portfolio assuming that any Bonds that mature in less than a year can be rolled over (purchased again at the same interest rate. 3 Date Information Accessed 4 21-Sep-20 21-Sep-20 5 21-Sep-20 7 21-Sep-20 8 Road US 30 Year Treasury Bond Japan 10 Year Government Blond Italy 10 Year Government Bond Spain 10 Year Government Bond Annual Interest Rate 13.806 1.00% 16 50 12.50% Yield (On Sept. 21) 1.42% 0.02% 0.94% 0.25% Coupon 1.3894 0.109 1.65%. 1.25% Price (On Sept. 21) 98.281 100 831 106 047 109.927 Maturity Date 15-Aug-50 20 Jun 30 1-Dec-30 31-Oct-30 Fare Value $1,000 $1,000 $1,000 $1,000 For this simple Simulation, you are asked to create a simulated $10,000 Bond Portfolio. To do so, go into your online subscription for the WSJ (which of course you have been reading daily all semester, provided free to you by the BC library) . There, please go to the Markets section and find Bond prices. You can purchase" Bonds listed in each of the categories, and assume that you are purchasing $1,000 face value Bonds. Your Portfolio should be laddered (short and long durations) so changes in the interest rate are not terrible for your returns. You should therefore have short term and long term Bonds in the Portfolio You should be diversified across geographies, buying Bonds issued in the US and at least 3 other jurisdictions. Your submission for this will be an MS Excel document that you create and should include the details of the Bonds you would purchase to meet the above requirements, including source of the bonds and their annual interest rate. Once you have your Portfolio list of Bonds, please estimate the one year income in both % and dollar terms on the total "Portfolio", assuming that any Bonds that mature in less than a year can be rolled over (purchased again) at the same interest rate
