How long will it take the fund to earn

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Reference no: EM133290543

Case: The Admiral Shares of the Vanguard Short-Term Bond Index Fund (symbol: VBIRX) is one of Vanguard's more popular funds, with net assets of $66.8 Bn as of 10/21/22. Using the Internet or some other public source of information, determine the following:

a. The Fund's year-to-date return through 9/30/22?

-6.53%

b. What was the Fund's average duration and yield to maturity as of 9/30/22?

YTM = 4.5%

Average duration = 2.6 years

c. Assume the Fund had interest earnings of .50% during the first nine months of 2022 and its average duration has been constant since 1/1/22. Given your answers to parts a) and b) above, approximately how far did the general level of interest rates move and in what direction did they move over the first nine months of 2022 to produce the overall return result you determined in part a)?

d. Given your answer in part b) above, approximately how long will it take the Fund to earn its year-to-date result if interest rates remain unchanged in the future?

Reference no: EM133290543

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