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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: [email protected] 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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