Question: 9. Consider a bullet portfolio comprising a 19 year zero coupon bond with a face value of 80,000 and a barbell portfolio comprising a 9

9. Consider a bullet portfolio comprising a 19 year zero coupon bond with a face value of 80,000 and a barbell portfolio comprising a 9 year zero coupon bond with a face value of 20,344.76 and a 29 year zero coupon bond with a face value of 86,626.55. The 9-year rate is 5.90% p.a. nominal, the 19-year rate is 6.40% p.a. nominal and the 29-year rate is 6.90% p.a. nominal. These portfolios have the same market value today. Assuming semi-annual compounding and that the yield curve shifts upwards by 100 basis points at all maturities then: [Select] The barbell outperforms the bullet by $93.19 The bullet outperforms the bullet by $135.94 The bullet outperforms the barbell by $93.19 or to Q9. The barbell outperforms the bullet by $135.94 The barbell outperforms the bullet by $25.58 1 that the yield curve is flat at 6.40%pa nominal. Consider a bullet portfolio with a face value of $80.000 and a maturity of 19 vears. A barbell
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