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.
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
- Propose and implement how you would embark data analysis journey for evidence-based: Advanced Data Analysis Assignment, TARC, Malaysia
- You are expected to conduct a presentation of the feasibility of the project based on the location: Project Management Assignment, TU, Malaysia
- SEM207: Basic Econometrics Report, XUM, Malaysia Student is required to collect macroeconomic data of a nation that are relevant to explaining the country’s GDP
- FBF1163: Fundamentals of Programming Assignment, UCSI, Malaysia Presume that your class at UCSI finishes at 6:30 pm and you must travel 6 km to reach your home for dinner
- DECON203 Business Economics Individual Assignment Brief Semester-03 September 2025 to January 2026
- A small new software development project at company SRT Enterprise has five major activities: Production Operation Management Home Work, UUM, Malaysia
- Law Assignment, TU, Malaysia Patient 67 years old man who had a total right knee replacement at the hospital
- BBMC4103: Change Management Assignment, OUM, Malaysia Few firms can thrive in the face of constant change Although change is difficult to accept, it is your responsibility
- AACS3064: Computer Systems Architecture TARC, Malaysia Suggest an application program/system which includes arithmetic computations from any one of the following industries/system
- PPH10302T: Pharmacy Practice I Assignment, MSU, Malaysia Calculate the quantity of medication needed to be dispensed for the patient and How much should the patient be charged by the cashier
