FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You own a bond portfolio worth $28,000. You estimate that your portfolio has an average YTM of 6.9% and a Modified Duration of 7 years.

You own a bond portfolio worth $28,000. You estimate that your portfolio has an average YTM of 6.9% and a Modified Duration of 7 years. If your portfolio's average YTM were to decrease by two basis points, what would be the approximate new value of your portfolio? Round to the nearest cent.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Python For Finance

Python For Finance

Authors: Yves Hilpisch

2nd Edition

1492024333, 978-1492024330

More Books

Students also viewed these Finance questions

Question

★★★★★
The following are a series of unrelated situations. 1. Halen Companys unadjusted trial balance at December 31, 2014, included the following accounts. Halen Company estimates its bad debt expense to...

Answered: 1 week ago

Question

★★★★★
Which of the following cancels a formula before it is completed? O Enter O Esc O Backspace O Tab Which of the following cell addresses will change when it is copied? O F2 O $F$2 O $F2 F$2 If the...

Answered: 1 week ago

Question

★★★★★
4. Ashantis sense of humor keeps the class positive.

Answered: 1 week ago

Question

★★★★★
The Bailey Machine Tool Company thinks it can increase sales by $10 million by loosening its credit standards somewhat. The firm normally experiences bad debts of about 2% of sales, but marketing...

Answered: 1 week ago

Question

★★★★★
Rise Against Corporation is comparing two different capital structures, an all-equity plan (Plan 1) and a levered plan (Plan ). Under Plan I, the company would have 180,000 shares of stock...

Answered: 1 week ago

Question

★★★★★
Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $490,000, variable expenses of $365,000, and fixed expenses of $145,000. Therefore,...

Answered: 1 week ago

Question

★★★★★
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable...

Answered: 1 week ago

Question

★★★★★
Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2015, for $74,000. The PPE subledger shows the following information regarding the boat b....

Answered: 1 week ago

Question

★★★★★
A spaceship is orbiting around the Earth. The mass of Earth is 5.98 x 1024 kg, and the mass of the spaceship is 8600 kg. Let R be the distance from the center of Earth. If this distance changes from...

Answered: 1 week ago

Question

★★★★★
5. Two events occur at positions on the x-axis separated by a distance of Ax and by a time interval of At, according to one observer (Ann). Ann notes that when the first event occurs (a flash of...

Answered: 1 week ago

Question

★★★★★
A transverse mechanical wave is traveling along a string lying along the x-axis. The displacement of the string as a function of position and time, y(x, t), is described by the following equation:...

Answered: 1 week ago

Question

★★★★★
Guidelines for Informative Speeches?

Answered: 1 week ago

Question

★★★★★
5. Search YouTube for a segment with a speaker giving a speech (the topic does not matter). Turn off the volume so you can only see (not hear) the speech. Analyze the physical speech delivery of the...

Answered: 1 week ago

Question

★★★★★
4. When practicing a speech, pay attention to your gestures and body movements. Practice once using movements that you feel are appropriate and comfortable; then practice in front of a friend, and...

Answered: 1 week ago

Previous Question Next Question