What is the dollar duration for the $5 million position of bond ABC?
What will be an ideal response?
For our problem, a portfolio manager owns $5 million of par value of bond ABC, which has a market value of (70 / 100)$5M = $3.5 million. The dollar duration of bond ABC per 100-basis-point change in yield for the $3.5 million market value is 0.06($3.5 million) = $210,000 .
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____________________ are often referred to as measures of central tendency.
Fill in the blank(s) with the appropriate word(s).
Unrecorded revenues that have been earned but for which cash has not yet been received are ________
a. accrued revenues b. prepaid expenses c. accrued expenses d. unearned revenues
The number of degrees of freedom associated with the standard error of estimate is
a. n-1 since only the slope is estimated from sample data. b. n-1 since only the intercept is estimated from sample data. c. n-1 since only the predicted value of y is estimated from sample data. d. n-2 since the slope and the intercept are estimated from sample data.
Which of the following is a reason why risk analysis is an important part of capital budgeting?
A) The people who propose projects have no vested interest in whether or not they are accepted. B) Marketing managers are rarely excessively optimistic. C) Project cash flows can be highly uncertain. D) Financial analysts are rarely excessively pessimistic.