Question
Obtain data on any 5 corporate bonds currently outstanding in the market. The bonds should be selected such that a) all have different issuance year;
Obtain data on any 5 corporate bonds currently outstanding in the market. The bonds should be selected such that a) all have different issuance year; also b) all have different years to maturity. Please use the website of FINRA Fixed Income database https://www.finra.org/finra-data/fixed-income/corp-and-agency to select your bonds (you can find bonds related to your project 1 or project 2 companies for example). Make sure the bond type you select is Corporate Bond. You can assume that all bonds make annual coupon payments. Step-2: Perform Duration and Price Elasticity and Price Volatility analysis for each of the bonds. Step-3: By the use of the bonds, perform an immunization study for a hypothetical case you create (e.g. an obligation of 8000 USD within 12 years). Step-4: Replicate the step-2 analyses for any portfolio(s) you generate in step-3.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started