Business, 19.11.2019 01:31, supermansabeast
You work for a pension fund that has an obligation that must be paid in 10 years. currently this obligation, which has a present value of $200 million, is exactly funded (i. e., themarket value of the fund’s assets equals the present value of its obligation; net equity is exactlyzero). te duration of the fund’s assets is currently 8. the yield-to-maturity on zero coupon bondsof all maturities is currently 6%.(a)using the duration information, what would be the approximate change in the equity ofthe fund if interest rates decrease to 5% at all maturities? (b)your boss tells you that she would like you to shift all of the fund’s assets into a combinationof 5-year and 20-year zero-coupon bonds. how would you structure your investment to immunizethe fund against interest rate risk? that is, how much should you invest in the 5-year zero, and how much in the 20-year zero?
Answers: 1
Business, 22.06.2019 03:30, binodkharal2048
When the federal reserve buys and sells bonds to member banks, it is called a. monetary policy b. reserve ratio c. interest rate adjustment d. open market operations
Answers: 2
Business, 22.06.2019 06:40, jesh0975556
After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?
Answers: 1
Business, 22.06.2019 17:30, Nikcoli
Which of the following services will be provided by a full-service broker but not by a discount broker? i. research of potential investment opportunities ii. purchase and sale of stock at your request iii. recommendation of investments a. i and iii b. ii only c. iii only d. i, ii, and ii
Answers: 2
You work for a pension fund that has an obligation that must be paid in 10 years. currently this obl...
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