ASC553: An investor has an asset portfolio consisting of 2 assets which are 6-year m% annual coupon bond and 4-year n% annual coupon bond, Assignment, UiTM, Malaysia
| University | Universiti Teknologi MARA (UiTM) |
Question 1
Given below equation, 𝜆𝜆𝑡𝑡 = 0.05 + 0.003𝑡𝑡 − 0.0002𝑡𝑡2 for 0 ≤ 𝑡𝑡 ≤ 10 Construct a calculator for 𝑛𝑛-year spot rate and 𝑚𝑚-year forward rate which comes into existence at time 𝑡𝑡 and covers from time 𝑡𝑡 to time 𝑡𝑡 + 𝑚𝑚. Your calculator must be able to incorporate below input a. 𝑛𝑛 for spot rate. b. 𝑚𝑚 and 𝑡𝑡 for forward rate.
Question 2
An investor has an asset portfolio consisting of 2 assets which are 6-year m% annual coupon bond and 4-year n% annual coupon bond. Construct a calculator to calculate the portfolio’s
a. Macaulay duration
b. Modified duration
c. Convexity
Question 3
Construct a calculator for arbitrage strategy for 2 year m% annual Coupon Bond yielding i% per annum. Incorporate an input into your calculator for: a. the bond’s par value. b. The bond’s coupon rate. c. The bond’s yield rate (to calculate for the bond’s price) d. Spot rates (can apply spot rates from question 1 or MGS from BNM website) Question 4 Your company has a 10-year lease agreement which has 10 annual lease payments. The first payment is RM100,000 and each payment thereafter was to be adjusted for inflation with annual 4% increases (compounded). Using the yield curve in Question 1, construct an absolute matching strategy using an annual coupon bond where the all have the same yield rate as per the zero coupon bond and all sell at par.
Stuck in Completing this Assignment and feeling stressed ? Take our Private Writing Services.
Get Help By Expert
Struggling with your assignments in Malaysia? Need help with ASC553 or constructing a calculator for spot and forward rates? Our Assignment Helper in Malaysia is here for you! Whether you're stuck with the equation 𝜆𝜆𝑡𝑡 = 0.05 + 0.003𝑡𝑡 − 0.0002𝑡𝑡² or need assistance with Online Thesis Helper, we've got your back. Malaysian students can now ease their burden by paying someone to Do My Assignment for Me. Let our experts guide you through your course, ensuring success every step of the way. Don't let assignments stress you out—get the help you need today!
Recent Solved Questions
- Faculty of Business and Law Assignment, TU, Malaysia Analysis and discussion on the financial performance and Basically your financial performance analysis comprise of horizontal
- Finance, Accounting and Management Assignment, UON, Malaysia Company SBS9 is evaluating the following list of Investments The target capital structure is to use 50% Debt and 50% Equity
- FIN30016: Financial Accounting Report, SUT, Malaysia The size effect/premium in stock returns is the phenomenon that small-cap stocks on average outperform large-cap stocks over time
- BBBL2074: Business and Corporate Law Assignment, TARC, Malaysia Olive Foods Sdn. Bhd. is a relatively small company incorporated in Malaysia having its business premises in Rawang
- BBF30403: AKA Sdn Bhd a logistic company wish to raise additional fund via equity in stock exchange: Corporate Finance Assignment, WOU, Malaysia
- The teaching profession is undeniably challenging. A teacher’s role extends beyond imparting knowledge: Foundations Of Educations Assignment, UNM, Malaysia
- Accounting Essay, UON, Malaysia Tulip Berhad sold goods to Mawar Berhad for RM1.5 million. The margin was 20% on the selling price which was the normal markup
- MPU3192: Falsafah Dan Isu Semasa 2 Assignment, OUM, Malaysia Kongsikan pandangan anda kebanjiran konsert artis dari luar negara dan dalam negara di Malaysia pada tahun 2023
- Introduction to C Programming Assignment, UON, Malaysia Explain the essential facts, concepts, principles, strategies, and theories relating to Information Technology applications
- CDMA2103: Mathematics for Information Technology Assignment, OUM, Malaysia Write a set A that contains the name of students whose age is between 20 to 37
