![subject](/tpl/images/cats/ekonomika.png)
Business, 26.10.2021 19:10 kelechikamalu1
Pension funds pay lifetime annuities to recipients. If a firm remains in business indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $3.6 million per year to beneficiaries. The yield to maturity on all bonds is 20%. a. If the duration of 5-year maturity bonds with coupon rates of 16% (paid annually) is 3.7 years and the duration of 20-year maturity bonds with coupon rates of 7% (paid annually) is 6.5 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immunize your obligation
![ansver](/tpl/images/cats/User.png)
Answers: 1
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 02:00, Sumysumy
Southeastern bell stocks a certain switch connector at its central warehouse for supplying field service offices. the yearly demand for these connectors is 15,000 units. southeastern estimates its annual holding cost for this item to be $25 per unit. the cost to place and process an order from the supplier is $75. the company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) find the economic order quantity. b) find the annual holding costs. c) find the annual ordering costs. d) what is the reorder point?
Answers: 2
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 12:10, felisha1234
Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note:
Answers: 1
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 17:30, harshakayla02
According to management education expert ashok rao, companies can increase their profitability by through careful inventory management. a. 5% to 10% b. 10% to 25% c. 20% to 50% d. 75%
Answers: 1
You know the right answer?
Pension funds pay lifetime annuities to recipients. If a firm remains in business indefinitely, the...
Questions in other subjects:
![Konu](/tpl/images/cats/mat.png)
Mathematics, 26.11.2021 23:40
![Konu](/tpl/images/cats/mat.png)
Mathematics, 26.11.2021 23:40
![Konu](/tpl/images/cats/istoriya.png)
![Konu](/tpl/images/cats/ekonomika.png)
![Konu](/tpl/images/cats/obshestvoznanie.png)
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/fizika.png)
![Konu](/tpl/images/cats/ekonomika.png)
![Konu](/tpl/images/cats/User.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 26.11.2021 23:40