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
- Freight and Supply Chain Management Research Paper, SU, Malaysia According to Ziesemer, Thomas (1995) in his study about the growth with imported capital goods
- NBNS1104: Discuss strategies to overcome adolescent pregnancies and reasonable steps to avoid the stigma: transculture in nursing Assignment, OUM, Malaysia
- Guidelines for Logbook and Field Report Submission During Practical Training
- CSC1212: Data Communications and Networking Assignment, MMU, Malaysia You are interested in starting your own Gaming Store, The New-Gamers, in a suburban area of your town
- ASSIGNMENT INDUSTRIAL PROJECT FOR PROF DIPLOMA
- 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
- Medical Surgical Nursing Assignment, IMUM, Malaysia Explain the pathophysiological basis of altered functions of the renal, integumentary, immune, eastro-intestmal
- Business Management Assignment, CUM, Malaysia The most common challenges towards brand builders are savvy customers, more sophisticated & increasing competition
- Supply Chain Management Case Study, UUM, Malaysia Provide the operational definition of the supply chain in the context in which your organization and its supply chain operate
- Company and Business Law Assignment, BAC, Malaysia Demonstrated ability to identify a legal issue arising from a set of facts. Demonstrated ability to apply a relevant
