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company has a block of pension liabilities with a value on November 10,2022 of $56,725, and an effective duration and convexity of 10 and 151

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company has a block of pension liabilities with a value on November 10,2022 of $56,725, and an effective duration and convexity of 10 and 151 espectively. The pension block's surplus ratio is 10% (i.e., ratio of surplus to liabilities). The duration matching strategy is to match long by 0.8 with a 11 limit, i.e., assets are between 0.7 and 0.9 longer than liabilities. The only available bonds are the three par bonds in cells A6. D13. Each bond pays emi-annual coupons and the coupon rate and yields are expressed as annual nominal rates convertible semi-annually and November 10,2022 is the oupon date for all three bonds. Construct an asset portfolio satisfying the duration matching strategy. ) Calculate the portfolio asset value in cell F13. s) Construct a valid asset portiolio in cells B12.D13. C) Calculate the asset portfolio's duration constructed in b) in cell F 10 . d) Calculate the asset portfollo's convexity constructed in b) in cell F11, company has a block of pension liabilities with a value on November 10,2022 of $56,725, and an effective duration and convexity of 10 and 151 espectively. The pension block's surplus ratio is 10% (i.e., ratio of surplus to liabilities). The duration matching strategy is to match long by 0.8 with a 11 limit, i.e., assets are between 0.7 and 0.9 longer than liabilities. The only available bonds are the three par bonds in cells A6. D13. Each bond pays emi-annual coupons and the coupon rate and yields are expressed as annual nominal rates convertible semi-annually and November 10,2022 is the oupon date for all three bonds. Construct an asset portfolio satisfying the duration matching strategy. ) Calculate the portfolio asset value in cell F13. s) Construct a valid asset portiolio in cells B12.D13. C) Calculate the asset portfolio's duration constructed in b) in cell F 10 . d) Calculate the asset portfollo's convexity constructed in b) in cell F11

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