Question: please help solution Years to maturity ABC Mutual Fund has at present the following Bond Portfolio: ...mik rate FV Required rate of Par Value return

please help solution

Years to maturity ABC Mutual Fund has at present the following Bond Portfolio: ...mik rate FV Required rate of Par Value return | 12%-coupon Municipal 11% Tshs 50 million Bonds 10%-coupon Treasury 10% Tshs 30 million Bonds 14%-coupon Corporate 15% Tshs 40 million Bonds 10 5 What is the market value of the Mutual Fund's bond portfolio at present? (4 marks) What would be the market value of the Mutual Fund's bond portfolio, if the interest rate decrease by 1% one year from now and so affecting the required rates of return

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

MUNISA Ung of each of the following portfolio performance measures: (i) Treynor measure, (ii) Sharpe mgasure, (ii) Jensen measure and (iv) M' measure. Dia Popstaren PR (4 marks@ 4 = 16 PR-R) marks)...

Please help! Asap. Question 1 1 pts MeadWestvaco Corp issues a 6 percent coupon bond with 22 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to maturity of this bond...

Please Help, my team and I have different answers. Problem 6.34 Present Value Tirade Owens, a professional athlete, currently has a contract that will pay him a large amount in the first year of his...

MGMT 640 Midterm Exam Ques. 1) Which of the following is not an advantage of the corporate form of business organization? a. Sell debt or equity in public capital markets b. Owners have limited...

Arithmetic mean Geometric Mean A 5.33% 4.61% B 4.61% 5.33% C 12.00% 7.00% D 7.00% 12.00% 2. Larry invested $5,000 in ABC mutual fund one year ago. The fund paid dividends of $100, $150, $50, and $100...

with any questions you can!! 1. Microtalk issued bond about five years ago. The bonds are callable nine years from today. The bonds are trading today for $1494.93. Assuming the bonds pay $100 in...

(TCO 1) Which of the following is true about fixed-income securities? They encompass preferred stock, corporate bonds, and common stock. They could include preferred stock, U.S. Treasury bonds, and...

Please help for finance project as file attach: Problem 1: Here are data on two companies. The T-Bill rate is 4% and the market risk premium is 6% Company Victoria Store Houston Store Forecasted...

Unit 2 Textbook Problems Core Principles and Applications 4th edition textbook. Due: 12/6 This assignment helps you develop the skills to master the following course competencies: Apply the theories,...

:please help me answer the following questions. Question 1: Financial institution has the following balance sheet structure: Assets Liabilities Cash$1,000 Certificate of deposit$10,000 Bond10,000...

Show that for the case of nuclei with odd mass number, A, the Bethe-Weizasacker formula can be written as a quadratic in Z-and thus, for any given A, the binding energies of the isotopes having that...

S Co, an 80%-owned subsidiary of P Co, sold inventory items to its parent at a $48,000 profit in 2014. P resold one-third of this inventory to outside entities. S reported net income of $200,000 for...

When preparing a tax return, it is important to complete each step in the order prescribed. Identify each step in completing a tax return by choosing the step from the drop-down fields below. Step I:...

8:37 * N. 80% i ... OBJECTIVES: Create relationships Create a Pivot Table from Related Tables Create a PivotChart Modify the PivotChart The major section in this chapter :ontinuation is: Data...

(LO 6-4) Which of the following methods illustrate the use of artificial intelligence to evaluate the allowance for doubtful accounts? Select all that apply 1. Calculating a percentage of accounts...

Move your cursor over the data point on the day with the fewest transactions on the line chart. What is (are) the supplier name(s)? Clear your selection when you are finished.

Click out of the top supplier to reset the filter then click the day with the fewest transactions on the line chart. How many transactions take place on that day?