Question
We would like to invest 2 000 000 USD on 4 years and we have two zero-coupon bonds: bond A with NV = 10 000
We would like to invest 2 000 000 USD on 4 years and we have two zero-coupon bonds: bond A with NV = 10 000 USD, with yield 6 % and maturity of 2 years and bond B with NV = 5 000 USD, with yield 5 % and maturity of 7 years. Calculate:
- Weights of both bonds in the portfolio
- Number of pieces of each bond
How would change the value of the portfolio, when yields will decrease by 2%
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
