Market rate of interest to decrease for foreseeable future

Assignment Help Business Economics
Reference no: EM131112662

You own a bond portfolio and expect the market rate of interest to decrease for the foreseeable future. (a) What should you do with regards to the Duration of the portfolio and your own investment horizon? (b) What are the two reasons for doing so?

Reference no: EM131112662

Questions Cloud

Trade policies in terms of relationships : There are many economists who defend the notion that the United States has to clean up their trade policies in terms of relationships, agreements and even tariffs- Their justification is that in order to compete, the United States should position the..
Discussed first price sealed bid auction with two bidders : In class, we discussed a first price sealed bid auction with two bidders. Each bidder’s valuation v was a random draw from the interval [0, 1] according to the uniform cumulative distribution function F(v) = v for 0 £ v £ 1. Now suppose there are n ≥..
What asset classes should be considered for investment : Which of the following involve the asset allocation decision? What asset classes should be considered for investment?
Determine the projected after-tax rate of return : A corporation expects to receive $32,000 each year for 15 years from the sale of a product. There will be an initial investment of $150,000. Manufacturing and sales expenses will be $8067 per year. Assume straight-line depreciation, a 15-year useful ..
Market rate of interest to decrease for foreseeable future : You own a bond portfolio and expect the market rate of interest to decrease for the foreseeable future. (a) What should you do with regards to the Duration of the portfolio and your own investment horizon? (b) What are the two reasons for doing so?
Annual payments on the principal of the loan : If one chooses to take on debt, they can do it by loans that have (1) annual payments on the principal of the loan (2) interest payments each year with principal paid at the end or (3) no interest payments until the end when interest and principal is..
Alternative sources of funding for small business venture : Small businesses often rely on lending institutions to finance their ventures. Banks, however, are not the only means to secure capital. Through creative and diligent research, entrepreneurs may uncover alternative sources of funding for their small ..
What are the risks of expanding into this market : You have selected a small coffee shop in your area. Develop a strategy for expanding this business in a national market. Why do you believe the business could succeed in this new geographic market? What are the risks of expanding into this market?
Strategy for expanding this business in regional market : You have selected a small coffee shop in your area. Develop a strategy for expanding this business in a regional market. Why do you believe the business could succeed in this new geographic market? What are the benefits of expanding into this geograp..

Reviews

Write a Review

Business Economics Questions & Answers

  What are three limitations to traditional cost risk analysis

What are three limitations to traditional cost risk analysis? Explain how qualitative and quantitative data collection is different. Also discuss how the risk driver approach can be useful in minimizing the limitation to traditional cost risk analysi..

  Important international trade relationship

The U.S. and China have developed a strong and important international trade relationship in a relatively short amount of time that also has resulted in some challenges for each country. This has resulted in differing arguments on how to deal with th..

  Economic resources have a price above zero because

Economic resources have a price above zero because...

  Equilibrium price and quantity

A machine used to cereal boxes dispenses, on the average, ounces per box. What is the largest value.

  Discuss the social and economic effects of colonization

Discuss the social and economic effects of colonization? How did it contribute the “Price revolution”? What were the main tenets of bullionism/mercantilism? What policies and events combined to bring an end to the Spanish hegemony?

  How do we adjust a current-period market

Costs imposed on future users of a resource are called ... 1) Transactions costs 2) Social costs 3) Private costs 4) Depletion costs 5) User costs

  Which country has comparative advantage in what good

Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. Find the opportunity cost of both go..

  Which segment of the population is one of the wealthiest

Which segment of the population is one of the wealthiest in the U.S.?

  How would a shift of the cost curves affect a firms profits

Costs are very important not only to us as individual consumers, but also to businesses who must control costs in make the desired profit. We should have learned that in this chapter (if we did not already know that). In this discussion answer the fo..

  What do you need to consider in order to expand into market

What factors do you need to consider if you expand your business regionally? Nationally? Globally? What do you need to consider in order to expand into each market? Does the nature of a business (the services provided) impact the location of the expa..

  What is the uniform annual equivalent value of labor cost

An electronic device is available that will reduce this year's labor cost by $10,000. The equipment is expected to last for 8 years. If labor costs increase at an average rate of 7% per year and the interest rate is 12% per year: What is the maximum ..

  Apartment after the imposition of rent controls

Draw a supply and demand graph to illustrate what will happen to the rental price of an apartment after the imposition of rent controls. Do you think this policy will benefit students? Why or why not?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd