Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help on all 4 parts of the question if you know correct answer, also can you have it fit to scale, thank you! :)

please help on all 4 parts of the question if you know correct answer, also can you have it fit to scale, thank you! :)
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
MLK Bank has an asset portfolio that consists of $230 million of 15-year, 8 percent annual coupon, $1,000 bonds that sell at par. a-1. What will be the bonds' new prices if market yields change immediately by + 0.10 percent? a-2. What will be the new prices if market yields change immediately by + 2.00 percent? b-1. The duration of these bonds is 9.2442 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required BlRequired B2 What will be the bonds' new prices if market yields change immediately by + 0.10 percent? (Do not round Intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places (0.9., 32.16)) Bonds New Price Al + 0.10% Al-0.10% Roll Al Required A2 > MLK Bank has an asset portfolio that consists of $230 million of 15-year, 8 percent annual coupon, $1,000 bonds that sell at par. a-1. What will be the bonds' new prices if market yields change immediately by : 0.10 percent? a-2. What will be the new prices if market ylelds change immediately by + 2.00 percent? b-1. The duration of these bonds is 9.2442 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required 81 Required 82 What will be the new prices if market yields change immediately by +2.00 percent? (Do not round Intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places, (e.9., 32.16)) Bonds' New Price AL + 20% At - 20% MLK Bank has an asset portfolio that consists of $230 million of 15-year, 8 percent annual coupon, $1,000 bonds that sell at par a-1. What will be the bonds' new prices if market yields change immediately by + 0.10 percent? a-2. What will be the new prices it market yields change immediately by + 2.00 percent? b-1. The duration of these bonds is 9.2442 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 The duration of these bonds is 9.2442 years. What are the predicted bond prices in each of the four cases using the duration rule? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places. (09, 32.16)) Bonds New Price AL+ 0.10% Al-0.10% At 20% At - 20% MLK Bank has an asset portfolio that consists of $230 million of 15-year, 8 percent annual coupon, $1,000 bonds that sell at por a-1. What will be the bonds' new prices if market yields change immediately by + 0.10 percent? a-2. What will be the new prices if market yields change immediately by + 2.00 percent? b-1. The duration of these bonds is 9.2442 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. Required A1 Required AZ Required B1 Required B2 What is the amount of error between the duration prediction and the actual market values? (Do not round Intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places (6.9. 32. 16)) Amount of Error At+ 0.10% Al-0.10% At+20% At - 20% (Required B1 Required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Day Trading Cardinal Rules For Passive Income

Authors: Brian Stclair

1st Edition

1539480313, 978-1539480310

More Books

Students also viewed these Finance questions

Question

How can you defend against SQL injection attacks?

Answered: 1 week ago