You are in charge of the risk management division at XYZ, Inc. XYZ’ assets consist of investments worth $30 million today in 3-year zero-coupon bonds. XYZ’s liabilities consist of a single payment of $43 million due in 10 years. The term structure of interest rates is flat at 5%. Assume that all shifts in the term structure are parallel. a. What is the Macaulay and Modified duration of XYZ’ assets? b. XYZ, Inc. thinks that interest rates may rise to 5.5%. Compute the exact change in the value of XYZ’s assets and compare this with the approximate change using duration.
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Business, 21.06.2019 23:00
What is overdraft protection (odp)? a.) a cheap and easy way to always avoid overdrawing a bank account b.) a service to automatically transfer available funds from a linked account to cover purchases, prevent returned checks and declined items when you don’t have enough money in your checking account at the time of the transaction. c.) an insurance policy sold by banks to prevent others from withdrawing your money d.) a service provided by the government that insures individuals bank deposits up to $250,000
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Business, 22.06.2019 09:30
Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $385,000; cash paid for rent, $49,000; cash paid to employees for services rendered during the year, $129,000; cash paid for utilities, $59,000. in addition, you determine that customers owed the company $69,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,900 at year-end, and the rent payment was for a two-year period.
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Business, 22.06.2019 15:30
Uknow what i love about i ask a dumb question it is immediately answered but when i ask a real question it take like an hour to get answered
Answers: 2
You are in charge of the risk management division at XYZ, Inc. XYZ’ assets consist of investments wo...
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