utions 1. In today's dollars a bond returns 5% of the investor's priced year, 3% in the third year and the rest in the fourth year. What is the bords 2. Calculate the percentage volatility of a $1,000 tace value 8% who do from $1,020 to $1,050. 1 " B ili Suppose a financial institution holds a portfolio of bonds with a value of $50,000,000 and died 3.5. The portfolio currently yields 4 percent and you don't anticipate any changes in the yout next month. If the average monthly change in the yield is 0 basis points and the monthly and deviation of changes in the yield is 75 basis points, what is the portfolio's monthly VAR at the confidence level? Assume normal distribution of yield changes (the appropriate critical values 15) iii III 1 " B I utions 1. In today's dollars a bond returns 5% of the investor's priced year, 3% in the third year and the rest in the fourth year. What is the bords 2. Calculate the percentage volatility of a $1,000 tace value 8% who do from $1,020 to $1,050. 1 " B ili Suppose a financial institution holds a portfolio of bonds with a value of $50,000,000 and died 3.5. The portfolio currently yields 4 percent and you don't anticipate any changes in the yout next month. If the average monthly change in the yield is 0 basis points and the monthly and deviation of changes in the yield is 75 basis points, what is the portfolio's monthly VAR at the confidence level? Assume normal distribution of yield changes (the appropriate critical values 15) iii III 1 " B