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Problem 2 You have until 5:28 PM to complete this assignment. Part 1 | Attempt 1/1 for 10 pts. Village bank has 8-year zero coupon
Problem 2 You have until 5:28 PM to complete this assignment. Part 1 | Attempt 1/1 for 10 pts. Village bank has 8-year zero coupon bonds with a total face value of $30 million. The current market yield on the bonds is 8 percent. What is the price volatility if the maximum potential adverse move in yields is estimated at 20 basis points? (Please enter your answer in percentage with 3 digits after the decimal point!) 0.888 Move on Part 2 | Attempt 1/1 for 10 pts. What is the daily earnings at risk (DEAR) of this bond portfolio (assume that the Village bank only has 8-year zero coupon bonds with a total face value of $30 million in its portfolio)? 0+ decimals Submit Problem 2 You have until 5:28 PM to complete this assignment. Part 1 | Attempt 1/1 for 10 pts. Village bank has 8-year zero coupon bonds with a total face value of $30 million. The current market yield on the bonds is 8 percent. What is the price volatility if the maximum potential adverse move in yields is estimated at 20 basis points? (Please enter your answer in percentage with 3 digits after the decimal point!) 0.888 Move on Part 2 | Attempt 1/1 for 10 pts. What is the daily earnings at risk (DEAR) of this bond portfolio (assume that the Village bank only has 8-year zero coupon bonds with a total face value of $30 million in its portfolio)? 0+ decimals Submit
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