Question: Step 2 : Using the data you receive from your eLA, write a report showing your calculations and answer the following questions: On 1 July
Step : Using the data you receive from your eLA, write a report showing your calculations and answer the following questions: On July you bought the portfolio of Commonwealth Government bonds. Calculate the amount you paid for each instrument per $ face value and thus the total for the equally weighted portfolio. Use the yields within the table provided by your eLA. marksCalculate the price of the instruments if they were sold on June marksCalculate the holding period yield for each instrument if you sold them on June Using the reinvestment rate contained within the table. marksWhat would be the holding period yield for the portfolio as a whole over the same period? Comment on your answer. marksUsing a table format, manually calculate the duration and convexity for the April Treasury Bond on the st of April if the yield for that day is contained within the table below. marksUsing a spreadsheet Excel and its duration formula, calculate the duration for all the bonds as at June marksWhat is the duration for the portfolio as at June marksIf the portfolio had a day Bank Accepted bill with the yield contained within the table, what would be the bills duration? Explain your answer. marksComparing the two sets of rates, what can you say about the term structure? marksNote: Show all calculations for parts a to i
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