Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Let us express the process of calculating approximate percentage price change for a given change in yield and a given duration using the following formula:
Approximate percentage price change = - duration × Δy ×100 ...Eq. (2)
As an inverse relationship exists between the price change and yield change, duration is preceded by a minus sign.
For example, let us take a 20-year bond with 8.5% coupon rate, currently trading at Rs.115.89 whose duration is 10.22. The approximate percentage price change for a 20 basis point increase in yield (i.e., Δy = +0.002) is
Approximate percentage price change = -10.22 × (+0.002) ×100 = -2.044%
You are a member of the ALM Committee (ALCO) of ANZ Bank. A visiting member has some queries relating to the general framework of the ALM and interest rate risk impact on the incom
It is not easy to determine the theoretical value of non-treasury securities. However, we can use the treasury spot rate for the valuation of non-treasury security.
Banks like to make short-term, self-liquidating loans to businesses. Why? Banks like can see where the funds are likely to come from such that the borrower is able to use to m
Learning outcome to be assessed: analyse financial statements to make decisions on the strength and adaptability of a business. A numerical analysis of the financial statements of
Explain the Strategic alliance Two or more organisations agree to work and collaborate informally together however remaining independent from one another. Simila
How do we calculate the payback period for a proposed capital budgeting project? What are the major criticisms of the payback method? We compute the payback period for a proposed
Part B This case is intended to be an introduction to the various methods used in capital budgeting and looks at some of the decisions that may have to be made when evaluating pro
Question 1 Swap is an agreement among two or more parties to exchange sets of cash flows over a period in future and What do you understand by swap? Describe its features, kind
Marshall-Edgeworth Method Marshall-Edgeworth method uses both the current year as well as the base year prices and quantities. Marshall-Edgeworth Index can be computed using th
Why are most futures positions closed out through a reversing trade rather than held to delivery? Answer: In forward markets, almost 90% of all contracts that are basically es
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd