subject
Mathematics, 16.12.2021 02:30 semajac11135

Valerie Smith is attempting to construct a bond portfolio with a Macaulay duration of 9 years. She has $500,000 to invest and is considering allocating it between two zero coupon bonds. The first zero coupon bond matures in 6 years, and the second zero coupon bond matures in 16 years. Both of these bonds are currently selling for a market price of $100. Suppose that the yield curve is flat at 7.5%. Is it possible for Valerie to construct a bond portfolio having a Macaulay duration of 9 years using these two zero coupon bonds? If so, how? (Describe the actual portfolio.) If not, why not?

ansver
Answers: 2

Another question on Mathematics

question
Mathematics, 21.06.2019 13:00
Use the diagonals to determine whether a parallelogram with vertices u(2,−2), v(9,−2), w(9,−6), and x(2,−6) is a rectangle, rhombus, or square. give all the names that apply.
Answers: 3
question
Mathematics, 21.06.2019 19:00
After t seconds, a ball tossed in the air from the ground level reaches a height of h feet given by the equation h = 144t-16t^2. after how many seconds will the ball hit the ground before rebounding?
Answers: 2
question
Mathematics, 21.06.2019 22:00
Tom drove 206 miles in 3.9 hours. estimate his average speed.
Answers: 2
question
Mathematics, 21.06.2019 22:40
Identify this conic section. x2 - y2 = 16 o line circle ellipse parabola hyperbola
Answers: 2
You know the right answer?
Valerie Smith is attempting to construct a bond portfolio with a Macaulay duration of 9 years. She h...
Questions
question
Computers and Technology, 23.09.2019 02:30
Questions on the website: 13722361