Today is 1 July, 2019. Siobhn has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhn purchased all instruments on 1July 2015 to this portfolio, which is composed of 30 units of instrument A and 32 units of instrument B.

• Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1January 2029.
• Instrument B is a Treasury bond with a coupon rate of j₂=2.46%p.a. and a face value of $100. This bond matures at par. Its maturity date is 1January 2022.

Calculate the current duration of Siobhn's portfolio using a yield to maturity of j₂=3.59%p.a. Express your answer in terms of years and round your answer to two decimal places.

a.7.02 years

b.5.36 years

c.5.31 years

d.6.57 years

Today is 1 July, 2019. Heidelinde has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Heidelinde purchased all instruments on 1July 2012 to this portfolio, which is composed of 21 units of instrument A and 45 units of instrument B.

• Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1January 2029.
• Instrument B is a Treasury bond with a coupon rate of j₂ = 2.02% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1January 2022.

Calculate the current price of instrument A per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂=2.8%p.a.

a.$76.7854

b.$62.3318

c.$59.1740

d.$63.2044

Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of j₂ = 4.61%p.a. and a face value of $100. This corporate bond matures at par. Its maturity date is 1 January, 2025. The yield rate is assumed to be j₂ = 8.4%p.a. Assume that this corporate bond has a 14% chance of default in any six-month period during its term. Assume, also, that, if default occurs, Georg will receive no further payments at all. Calculate Georg's purchase price. Round your answer to three decimal places.

a.$90.182

b.$45.017

c.$94.117

d.$39.056