QUESTION 4 ( 4 Marks ) Fully explain what is meant by the following terms in relation
Fantastic news! We've Found the answer you've been seeking!
Question:
QUESTION 4 ( 4 Marks )
Fully explain what is meant by the following terms in relation to a security or a fund.
a) Alpha
b) Beta
Question 6 (4 Marks)
Use the following information for a bond to calculate:
a) the Macaulay Duration of the bond and; (2 Marks) b) the Modified Duration of the bond explaining the significance of modified duration (2 Marks)
5 year maturity Coupon of 10% 6% yield to maturity
Note: For the modified duration you may assume a change in yield of 1%
Related Book For
Human Resource Management
ISBN: 978-1111533557
1st edition
Authors: Jean M. Phillips, Stanley M. Gully
Posted Date: