You own a 7.5 percent, semiannual coupon bond that matures in 8 years… 1 answer below »


1. You own a 7.5 percent, semiannual coupon obligation that growns in 8 years. The par appreciate is $1,000 and the vulgar resign to manliness is 7.6 percent. What conquer the percentage exexchange in the appraisement of your obligation be if the resign to manliness suddenly acceptions by 75 account points? 2. Blue Water Homes has 8 percent obligations unappropriated that grown in 13 years. The obligations pay curiosity-behalf semiannually. These obligations bear a par appreciate of $1,000 and are flatterable in 2 years at a bribe of $75. What is the resign to flatter if the vulgar appraisement is correspondent to 103.5 percent of par? 3. A obligation has a qualified protraction of 6.13 and a resign to manliness of 8.9 percent. If curiosity-behalf reproves acception by 75 account points, the obligation's appraisement conquer wane by _____ percent. 4. A portfolio consists of the forthcoming securities. What is the portfolio consequence of store X? 5. You bear a portfolio which is middle of 70 percent of store A and 30 percent of store B. What is the expected reprove of come-back on this portfolio? 6. Store A has a test disconnection of 12 percent per year and store B has a test disconnection of 16 percent per year. The interdependence between store A and store B is .47. You bear a portfolio of these two stores wherein store B has a portfolio consequence of 35 percent. What is your portfolio discrepancy? 7. A store store has a test disconnection of 18 percent and a obligation store has a test disconnection of 11 percent. The interdependence of the two stores is .24. What is the approach consequence of the store store in the reserve discrepancy portfolio? 8. Of the forthcoming, Store _____ has the principal smooth of whole betray and Store _____ has the chief betray bribe. 9. A portfolio consists of two stores and has a beta of 1.07. The foremost store has a beta of 1.48 and comprises 38 percent of the portfolio. What is the beta of the assist store? 10. The forthcoming portfolio has an expected come-back of _____ percent and a beta of _____. 11. A betrayy asset has a beta of .88 and an expected come-back of 7.4 percent. What is the reward-to-betray kindred if the betray-free reprove is 2.8 percent? 12. Wilson Farms' store has a beta of .79 and an expected come-back of 7.8 percent. The betray-free reprove is 2.6 percent and the negotiate betray bribe is 6 percent. This store is ____ owing the CAPM come-back for the store is _____ percent. A. undervalued; 7.34 B. undervalued; 7.49 C. undervalued; 7.59 D. overvalued; 7.34 E. overvalued; 7.49 13. The negotiate has a test disconnection of 11.7 percent period a betrayy guard has a test disconnection of 23.7 percent. The codiscrepancy of the store after a while the negotiate is .0149. What is the beta of the store? 14. The U.S. Treasury charges is resigning 3.1 percent and the negotiate has an expected come-back of 11.2 percent. What is the Sharpe kindred of a portfolio that has a beta of 1.32 and a discrepancy of .027556? 15. What is the Treynor kindred of a portfolio middle of 50 percent portfolio A and 50 percent portfolio B? (The betray-free reprove is 3.3 percent and the negotiate betray bribe is 8.5 percent) 16. A portfolio has a beta of 1.52 and an developed come-back of 13.7 percent. The betray-free reprove is 2.7 percent and the negotiate betray bribe is 7.8 percent. What is the appreciate of Jensen's alpha? 17. A store has an annual test disconnection of 14.1 percent and an expected annual come-back of 11.5 percent. What is the smallest expected forfeiture for the contiguous 6 months ardent a likelihood of 2.5 percent? 18. Southern Fuel has an register of 714,000 gallons of heating oil. The futures contracts on heating oil are invetereprove on 42,000 gallons. If the determined wishes to easily hedge its register, it should engage which one of the forthcoming positions in heating oil futures contracts? A. crave on 15 B. crave on 17 C. soon on 15 D. soon on 16 E. soon on 17 19. You purchased five September wheat futures contracts at the notorious today and sold those contracts at the obstruct. What is your whole advantage or forfeiture on these contracts? 20. Which one of the forthcoming non-interferences is out-of-the-money? A. flatter after a while a $20 give-a-blow-to and a store appraisement of $21 B. put after a while a $35 give-a-blow-to and a store appraisement of $33 C. flatter after a while a $45 give-a-blow-to and store appraisement of $46 D. put after a while a $75 give-a-blow-to and a store appraisement of $70 E. flatter after a while a $50 give-a-blow-to and a store appraisement of $49 21. Josh owns 2 flatter non-interferences on Foster Glass store. The application appraisement is $47.50 and the store appraisement at dulness is $49.01. What is the whole payoff on the non-interference contracts? 22. A store is appreciated at $26 a divide. A European 6-month flatter non-interference has a give-a-blow-to appraisement of $25 and an non-interference bribe of $1.40. The negotiate reprove is 9.5 percent and the betray-free reprove is 2.5 percent. What is the appraisement of a European 6-month put non-interference after a while a $25 give-a-blow-to appraisement?

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