Business, 05.06.2020 13:58 hezekiahmharris
Hedge Fund
You are a bond analyst working for a hedge fund. A bond you follow has face value 100, has a coupon rate of 5% (paid once a year) and matures in 5 years. You are trying to find if there is any profitable trading strategy. You’ve done extensive research and have formed your opinions on future economic conditions. As a result, you expect that there will soon be a major shift in the yield curve. The current and the expected yield curve is shown below:
YearCurrentExpected
1 1% 3.00%
2 1.50% 2.50%
3 2.00% 3.50%
4 3.00% 4.00%
5 5.00% 5.00%
Question 1/3
Calculate the price of the bond based on the current yield curve? (use 2 decimal digits)
incorrect
Question 2/3
Calculate the price of the bond based on the expected yield curve $ __(keep two decimal points)
Question 3/3
You are 100% sure about your expectation of the movement of the yield curve in the near future. And you want to set up a trading position before the market price in the future shift of yield curve. What should you do?
Buy the bond
Sell the bond
Do nothing
Answers: 3
Business, 21.06.2019 21:00
Chipotle mexican grill, the american mexican food chain restaurant, opened its first restaurant in the united states in 1993. in 2010, chipotle opened its first restaurant in the united kingdom in london on charing cross. by late may 2013, the company had 6 restaurants in london, but they have not been doing well even though the british have taken a liking to mexican food (boyle, 2013). why has this successful u.s. chain not seen the same success overseas? if you were chipotle's ceo, how would you fix this situation? what is an alternative means of venturing outside of its domestic markets that may allow for a competitive advantage? then, pick a company that has not yet expanded overseas, or if it has expanded, suggest a different strategy for entrance into an overseas market that you feel would be more strategic for the company. research its rivals in the global marketplace and market conditions in the overseas market you are targeting. justify your recommended entry strategy based on these industry and market conditions.
Answers: 1
Business, 22.06.2019 10:30
The card shoppe needs to maintain 21 percent of its sales in net working capital. currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. what amount should be included in the project analysis for net working capital in year 4 of the project?
Answers: 3
Business, 22.06.2019 19:30
Adisadvantage of corporations is that shareholders have to pay on profits.
Answers: 1
Business, 23.06.2019 04:40
2. a computer equipment was acquired at the beginning of the year at a cost of $56,000 with an estimated residual value of $5,000, and an estimated useful life of five years. determine the second year’s depreciation expense using the straight-line method.
Answers: 3
Hedge Fund
You are a bond analyst working for a hedge fund. A bond you follow has face value 100, h...
English, 25.09.2019 17:00
Mathematics, 25.09.2019 17:00
Physics, 25.09.2019 17:00
Social Studies, 25.09.2019 17:00
Mathematics, 25.09.2019 17:00
Mathematics, 25.09.2019 17:00
Mathematics, 25.09.2019 17:00
Business, 25.09.2019 17:00
Social Studies, 25.09.2019 17:00
Mathematics, 25.09.2019 17:00
World Languages, 25.09.2019 17:00
Mathematics, 25.09.2019 17:00
Geography, 25.09.2019 17:00
Mathematics, 25.09.2019 17:00
Mathematics, 25.09.2019 17:00