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Suppose that today, the market YTM on the bond is 7s you can verify if you wish that this means Sammy would be able to

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Suppose that today, the market YTM on the bond is 7s you can verify if you wish that this means Sammy would be able to sell the bond in the market today for $1.151.18, it also means his FPY (again, you can verify if you wish) on the investment is 16.20%. If yields had dropped to this 7% level the day after Sammy first bought the bond, and stayed at 7% during his entire holding period up to the day of sale, what would be Sammy's actual total return on investment? 12.79% 16.2014 OS 140 15. Question 34 2 pts What is the Macauley duration for a bond with exactly 1.5 years to maturity, a 12% coupon rate, and a current market price quote of 105.06257 O 142 2.84 2.70 18 0.50 Question 35 2 pts Lelowns a portfolio of bonds with modified durations of 4.25 6.30, and 9 50 years, respectively. The proportion of her sortfolio wealth invested in the short duration bond is 20%, and she wants to be it that way. If he desered portfolio duration is 50 years, what should be her investment proportion in the long-duration bond? All of her money is invested in the three bonds she does not hold any cash 5510 3 2000 Suppose that today, the market YTM on the bond is 7s you can verify if you wish that this means Sammy would be able to sell the bond in the market today for $1.151.18, it also means his FPY (again, you can verify if you wish) on the investment is 16.20%. If yields had dropped to this 7% level the day after Sammy first bought the bond, and stayed at 7% during his entire holding period up to the day of sale, what would be Sammy's actual total return on investment? 12.79% 16.2014 OS 140 15. Question 34 2 pts What is the Macauley duration for a bond with exactly 1.5 years to maturity, a 12% coupon rate, and a current market price quote of 105.06257 O 142 2.84 2.70 18 0.50 Question 35 2 pts Lelowns a portfolio of bonds with modified durations of 4.25 6.30, and 9 50 years, respectively. The proportion of her sortfolio wealth invested in the short duration bond is 20%, and she wants to be it that way. If he desered portfolio duration is 50 years, what should be her investment proportion in the long-duration bond? All of her money is invested in the three bonds she does not hold any cash 5510 3 2000

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