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
- COM5074: Compose a commentary report focusing on a prevalent issue within your chosen domain in the creative industries: Professional Practice & Ethics Case Study, SU, Malaysia
- BNNS 6274: Orthopaedic and Neurovascular Nursing Assignment, LUC, Malaysia Malaysia has a higher prevalence rate of osteoporosis. The prevalence of osteoporosis is projected to be higher
- Educational Statistic Assignment, UMT, Malaysia Generate a frequency count and histogram with a normal distribution curve for Pretest science scores
- CBLX3103: INTRODUCTION TO LINUX Assignment, OUM, Malaysia The purpose of this assignment is to gain experience on the requirements of hardware, software and devices for Linux operating system
- Fundamental of Integrated Marketing Communication Case Study, UUM, Malaysia With an average annual growth rate of 11.2% over the past twelve years, tourism has been integral to the economy
- MPME7113: Select an article from an academic journal in economics. The article must focus on a topic in Managerial Economics: MANAGERIAL ECONOMICS Assignment, CUM, Malaysia
- K17MA Statistics Assignment: Real-World Case Study on NBA, Probability & Data Analysis
- MBOC7033 International Marketing Management Task Description Individual Assignment and Case study
- TCC 233/05: Database Management Systems Assignment, UTAR, Malaysia Describe attributes and tuples in detail, and use examples to elaborate on each of them
- Nursing Assignment, UPM, Malaysia Explanation of ideas and information/content and organization: accurate and detailed descriptions of the problems
