Business, 29.04.2021 22:00, gtsaeg7277
Suppose that bank of NYUSH has to pay 2,000 one year from now and 5,000 three years from now. The yearly yield is 10%. Assume that the bank hires your services in order to immunize the bank’s obligations. The bank asked you to invest in two (or one) bonds: bond A with coupon rate of 7%, face value of 100 and two years to maturity; bond B with coupon rate 5%, face value of 100 and four years to maturity. A. Write down your strategy that will help the bank (provide all your strategy in details. For example, how many units of A and B you intend to purchase). B. The moment you purchase the bonds, the yield changes to 9%. Show that the bank can still pay his obligations using your strategy. C. Does the bank still immunize after one year? If not, what does it need to do in order to be immunized again?
Answers: 2
Business, 21.06.2019 18:30, steloiryancy
Which of the following is located at the point where the supply and demand curves intersect? a. the equilibrium price. b. the minimum supply. c. the level of efficient production. d. the maximum demand. 2b2t
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Business, 22.06.2019 09:40, izzynikkie
Microsoft's stock price peaked at 6118% of its ipo price more than 13 years after the ipo suppose that $10,000 invested in microsoft at its ipo price had been worth $600,000 (6000% of the ipo price) after exactly 13 years. what interest rate, compounded annually, does this represent? (round your answer to two decimal places.)
Answers: 1
Business, 22.06.2019 15:30, barstr9146
Brenda wants a new car that will be dependable transportation and look good. she wants to satisfy both functional and psychological needs. true or false
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Suppose that bank of NYUSH has to pay 2,000 one year from now and 5,000 three years from now. The ye...
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