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Snowcat [4.5K]
3 years ago
12

Yields on short-term bonds tend to be more volatile than yields on long-term bonds. Suppose that you have estimated that the yie

ld on 20-year bonds changes by 10 basis points for every 15-basis-point move in the yield on 5-year bonds. You hold a $1 million portfolio of 5-year maturity bonds with modified duration 4 years and desire to hedge your interest rate exposure with T-bond futures (20 year maturity), which currently have modified duration 9 years and sell at F0 = $95. How many futures contracts should you sell?
Business
1 answer:
Alika [10]3 years ago
7 0

Answer:

70.1754386

Explanation:

The calculation of the number of the futures contract to sell as follows:

Portfolio value $1,000,000

Face value $100

Units. $10,000

Maturity portfolio. 5

Modified duration. 4

Modified duration of T bonds 9

Yield on portfolio. 0.000015

Yield on T bonds. 0.00001

Future price of the bonds $95

Loss of portfolio. $60

Decline in fut T bond price $.0086

Per value contract. $86

Number of future contract to sold 70.1754386

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Distinguish between private and public company???​
Mashutka [201]

Answer:

-Private company has mininmum 1 and maximum 101 member.

Public company has minimum 7 member and maximum is bounded by its share capital.

-Private company is smaller than the public companies by the no.of capital.

Public company is larger than private company and spread in different place.

-Private company uses the term Private limited after its name.

Public company uses the term Limited after its name.

-Examples of Private company are: Asmita Book Publication Pvt.ltd and Karunanidhi Education Foundation Pvt.ltd

Examples of Public company are:Nepal oil corporation and Nepal electricity Authority.

5 0
2 years ago
Read 2 more answers
A liquidity ratio measures the Group of answer choices income or operating success of an enterprise over a period of time. abili
mr Goodwill [35]

Answer:

short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash

Explanation:

A liquidity ratio can be regarded as type of financial ratio which is been utilized in determination of a ability of a company to pay out its short-term debt obligations. The metric is way to determine if there is a possibility for company to use its current as well as liquid and assets to cover up for its current liabilities.

It should be noted that A liquidity ratio measures short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash.

6 0
3 years ago
___ is the process of examining, documenting, and assessing the security posture of an organization’s information technology and
pychu [463]

Answer:

The correct answer is letter "A": Risk identification.

Explanation:

Risk identification is one of the steps used in the risk management process. Risks are determined through the measurement of the parameters that define them, the size of the loss or possible damage, and the possibility that the loss or damage eventually takes place.

5 0
3 years ago
Corporations with control both within and across industries are formed by a series of mergers and acquisitions across industries
Zielflug [23.3K]

Answer:

conglomerate                

Explanation:

In simple words, A conglomerate refers to the multi-industry corporation, which is a mixture of many enterprises operating within one organizational group in completely different sectors, which can include a holding company and several branches.

The conglomerates are always global and massive. The predominant conglomerates consolidate financial risk through investing in a variety of different industries, although other conglomerates opt to engage in a single sector, like those in mines.        

6 0
3 years ago
Christie has just started with a travel agency. and she has been offering clientsand prospective clients a range of packaged tou
Marta_Voda [28]

<u>Full question:</u>

Christie has just started with a travel agency. and she has been offering clients and prospective clients a range of packaged tours. She is concerned. because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter. who has been with the agency for several years, is having a great deal of success by working closely with the clients. seeking their ideas. and building customized tour packages for each one based on their suggestions.Peter's approach is based on A. transaction-oriented marketing.B. premium C. Vlaue Cocreation D.sales-oriented marketing.

Peter's approach is based on value cocreation.

<h3><u>Explanation:</u></h3>

Value co creation is one of the strategies used in the business. It is a business strategy that helps in creation and promotion of the involvement of the customers actively in creation of on demand and made to order products. By using this strategy they will get the exact product they are in need and they can also involve in understanding how those products are formed.

In the example given, The colleague of Christie, Peter is being working closely with the clients and he offers the services by asking the customer's ideas and their suggestions. Thus the approach followed by Peter is value cocreation.

6 0
3 years ago
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