Assignment 9(1)

Assignment 9(1) - Maple T.A. - Gradebook

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System Homepage » Class Homepage » Student Details » Student Assignment Details ActSci 231 W09 : Gradebook Welcome Po-Wei Chuang [ My Profile ] Assignment detail for Po-Wei Chuang in Assignment 9: Po-Wei Chuang Login: pchuang Email: Student ID: 20260696 Assignments completed: 9 Assignments active: 0 Question Grade 1 Julian Bradley's bond portfolio consists of two bonds. Specifically, there is a $16,000 7-year zero-coupon bond and a $3,000 4% par-value two-year bond with semiannual coupons. Compute the Macaulay duration for the portfolio assuming an annual effective interest rate of 0.055. Your Answer: 5.9387 Correct Answer: 5.93872539 Comment: Use IMPORTANT FACT 9.2.28, The Macaulay duration of a portfolio is a weighted average of the Macaulay durations of the individual assets, the weight being based on the price of individual asset in the portfolio. Instructors Comment: 1.0 2 Randy is obligated to pay $11,500 in six months,$20,000 in twelve months, and $21,500 in eighteen months. He wishes to purchase bonds to exactly match
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This note was uploaded on 03/24/2010 for the course ACTSC 231 taught by Professor Chisholm during the Winter '09 term at Waterloo.

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Assignment 9(1) - Maple T.A. - Gradebook

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