III. Portfolio Management Type Questions : pls i'll give good review

The remaining questions are related to each other and also use time value of money for solutions.: Part $3$: Same Problem but interest rates and yields to maturity increase.

$31.$ A new client allocates $$100$ million to your investment management firm. The client wants you to create a long$-$term fixed income portfolio and agrees to bonds with a $20-$year average term. To simplify, assume all the bonds are identical with $20-$year terms, coupon rates of $5\mathrm{.}75\%[$paid semi$-$annually$],$ AA credit ratings, and exactly $6$ months to the next coupon date. If the bonds are trading at par and are purchased at par, what is their yield to maturity? Round to $1$ basis point. This question is the same as above.

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$32.$ To form the $$100$ million portfolio, how many bonds would be purchased? Round to $1$ whole bond. This question is the same as above.

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$33.$ One year later, when the bonds mature in $19$ years, the yield to maturity on the bonds increases to $6\mathrm{.}20\%.$ What is the price or value of one of the bonds? Round to one cent. This question has the yield increasing instead of decreasing and changes some of the answers below. This answer will NOT be the same as Part $1$ because the yield has increased. Round to one cent and refer to the comments in question $15.$

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$34.$ What is the total value of the bonds in the portfolio assuming none of the bonds were upgraded or downgraded since inception? This answer will NOT be the same as Part $1.$ Round to $$1.$

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$35.$ What is the total capital gain or loss of the bonds in the portfolio? If the answer is a capital loss use a negative number and round to $$1.$ This answer will NOT be the same as Part $1.$

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$36.$ Reviewing the results over the first year $$ i$.$e$.$ doing a performance evaluation, how much $$income$$ in the form of coupon receipts was generated by the portfolio. Round to $$1.$ This question is the same as above.

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$37.$ Assume the coupons collected from the first coupon payments $[6$ months after acquiring the bonds$]$ are reinvested at $3\%[$on an annual basis$].$ How much additional income was generated by the reinvestment? Round to $$1.$ This question is the same as above.

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$38.$ Including the coupon receipts and the reinvested income, what is the total income generated by the portfolio during the first year? Round to $$1.$ This question is the same as above.

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$39.$ Including the total income and the capital gain or loss on the portfolio, how much did the total value of the portfolio change during the first year? Assume no funds were withdrawn from or invested in the portfolio and if write as a negative number if a loss and round to $$1.$ This answer will NOT be the same as Part $1.$

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$40.$ Knowing that $$100$ million was initially invested in the portfolio, what was the $$total return$,$ which includes both income and capital gain or loss and is expressed as a percentage, on the portfolio during the first year? If a loss, use a negative number and round to $1$ basis point. This answer will NOT be the same as Part $1.$

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