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
- MBM3783: Social Marketing Case Study, UoTS, Malaysia A local woman claims to have been cheated of over RM1.4 mil after meeting someone online who claimed to be a South African engineer
- BDAU2103: Elements of Law Assignment, OUM, Malaysia How do law and rule differ? Explain using relevant examples. What is the relationship between law and justice
- UCS422: Cybersecurity for Non Computing Sciences Case Study, UiTM, Malaysia Your organization is planning to adopt BYOD which allow the employee to bring their own devices to accomplish the organization’s task
- Professional Engineering Techniques Home Work, APU, Malaysia Calculate the shortest payback period for the project investment shown in Table 1. Which project has a better investment
- GACT5113: Managerial Accounting Assignment, UTAR, Malaysia Due to rising labour costs in Malaysia, Domain Computer, based in Singapore, is considering shifting part of its production facilities
- Building a Personal Brand as a CEO: A Case Study of Vivy Yusof, the Cofounder of FashionValet and the dUCk Group: Marketing Management, Assignment, OUM, Malaysia
- Ethics and professional issues in Counselling and Psychology Case Study, MUM, Malaysia Joe is a 15-year-old, who has been referred to see the school counsellor by his teacher
- Unit 1 Strategic Supply Chain and Logistics Management Assignment Malaysia
- BEC1614: Each group is required to decide ONE topic that related to microeconomics principle and relate: Microeconomics Assignment, MMU, Malaysia
- Ahmad is attempting to perform an inventory analysis on one of his most popular products: Production Operation Management Home Work, UUM, Malaysia
