The Excel file Portfolio Bond Immunization Data contains information about three bonds. Use this data to: Compute the amount to be invested to meet the

Best Writers accounting, business-managerial-accounting The Excel file Portfolio Bond Immunization Data contains information about three bonds. Use this data to: Compute the amount to be invested to meet the

accounting, business-managerial-accounting

The Excel file Portfolio Bond Immunization Data contains information about three bonds. Use this data to: Compute the amount to be invested to meet the

The Excel file Portfolio Bond Immunization Data contains information about three bonds. Use this data to: Compute the amount to be invested to meet the future liability noted in the data. This future liability is due in 10 years. Find a combination of Bond 1 and Bond 2 having a target duration of 10 years. Find a combination of Bond 1 and Bond 3 having a target duration of 10 years. Perform an analysis using a data table and an accompanying graph to determine which of the following options (i.e., a portfolio consisting of Bond 1 and Bond 2, a portfolio consisting of Bond 1 and Bond 3, or a portfolio consisting of Bond 2) would be preferred to attempt to immunize this obligation. Construct a data table by varying the yield to maturity that shows the value of each option at the end of 10 years. Use yield to maturity values ranging from 0% to 15% in 1% increments. Based on your data table, construct a graph that demonstrates the performance of these 3 options. Analyze each option’s performance in attempting to achieve immunization. Transcribed Image Text: 2
Yield to maturity (Expected/Current)
8%
3
Number of Years to Future Liability
4
10.00
Future Liability
$10,000.00
7
Bond 1
Bond 2
Bond 3
8
Coupon rate
9
6.00%
8.00%
7.000%
Maturity (Years)
12
18
30
10
Face value
11
1,000
1,000
1,000
12

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