I think is 475848 because I just timed by 48 so I got 475848
Answer:
coupon rate= 13.5%
Explanation:
Giving the following information:
Number of periods= 5*2= 10 semesters
Par value= $1,000
YTM= 0.1/2 = 0.05
Price bond= $1,136
<u>To calculate the coupon rate, first, we need to determine the coupon per semester using the following formula:</u>
Bond Price= coupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
1,136 = coupon*{[1 - (1.05^-10)] / 0.05} + [1,000/(1.05^10)]
1,136 = coupon*7.722 + 613.91
522.09 = coupon*7.722
$67.61=coupon
<u>Now, the coupon rate:</u>
Coupon= par value*(coupon rate/2)
67.61= 1,000*(coupon rate/2)
67.61= 500coupon rate
0.135=coupon rate
coupon rate= 13.5%
Answer: 45%
Explanation:
Standard deviation for the portfolio will be a weighted average of the standard deviations of the individual assets.
Risky asset has standard deviation of 20%. Assume the weight is x.
Treasury bills have a standard deviation of 0 as they have no risk. Assume their weight is y.
Target Standard deviation is 9%.
Formula would be:
9% = (x * 20%) + (y * 0%)
20%x = 9%
x = 9% / 20%
x = 45%
