Sections 3/4 – Solution to Exercises 3.2. Suppose you own a portfolio of two zero-coupon bonds‚ one maturing in three years and one maturing in five years. Both have a face value of 100 euro. The three year rate is currently 3% and the five year rate 4%. What is the value of your portfolio? What is its modified duration? What is the sensitivity of the portfolio value to one basis point increase in each of the time buckets? What is the present value of a basis point? After some up-beat economic
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Introduction: Kingfisher airlines‚ JSW steel‚ Essar oil‚ Essar steel‚ HCC and so many Indian corporations have financially stressed balance sheets. Because of the poor performance of these companies and huge debts their continuing existence in the future is a matter of concern. So all those companies facing financial turmoil should consider a number of options to achieve restructuring or liquidity. There are six ways for them to achieve the desired results. These include winding up‚ arrangements
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The overview of the Australian bond market Nowadays‚ bonds are playing an increasing important role in investors’ portfolios‚ and which is defined as is a fixed interest type of investment option that would repay the principal and interest on a certain date in the future. By diversification‚ bonds also do a great contribution in reducing the risk of shares and property securities portfolio. The importance of the bond market has been realized by investors and bonds have been an important investment
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List of Tables Table 1: Zimbabwe debt figures 1995-1996 Table 2: Zimbabwe deficit figures 2000-2003 Table 3: Possible solutions EXECUTIVE SUMMARY In this paper the author shall trace the country’s economic trajectory‚ starting with Dr Benard Chidzero’s budget presentation of 1986 which he described as “particularly difficult”‚ and projected a budget deficit of ZW$1 billion. The importance of the huge post-war expectations of the general populace‚ and the ruling party’s deep desire to retain
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non-discretionary; however‚ some are considered premium purchases and their sales suffered during the recession as cheaper‚ generic purchases rose. P&G has some of the strongest brands in the world that usually provide it a significant competitive advantage. Procter & Gamble (P&G) is a Fortune 500 American multinational corporation. P&G focuses on its core businesses and leading billion-dollar brands for growth. Nearly 80% of sales and growth this decade has come from 10 businesses‚ including baby care
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the psychoanalytic approach vs. the humanistic approach. One supports and provides reasoning for mental disorders and specific behavior‚ while the other states that behavior is based off of personal decisions. Although both the psychoanalytic and the humanistic approaches are well developed theories it is conclusive that the psychoanalytic approach is more useful and instrumental in treating mental disorders. Both approaches defined: The psychoanalytic approach‚ proposed by Sigmund Freud‚ is
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Abstract Europe’s sovereign debt crisis has captured the attention of people all over the world. The crisis is the result of several structural problems in the European Union‚ as well as the individual mistakes of some countries. The several effects of the crisis are varied and go from a European bank’s crisis‚ to potential default contagion to other countries‚ and the possibility of the separation of the European Union. European leaders seemed unable to act quickly and agree in a plan of action
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Topic 2 - Week 3 1. There are two traditional approaches to theory construction that provide an insight on how theories are constructed. These are the inductive approach and deductive approach. a) Outline the steps involved in the above two approaches b) State the difference between the two approaches. 2. “The modern rational organisation of capitalistic enterprise would not have been possible without two other important factors in its development: the separation of business
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following question(s) refer to this peptide: Cys-Ala-Gly-Arg-Gln-Met Refer to Exhibit 4A. The overall‚ net ionic charge on this peptide at pH = 7 would be: A. +2 B. +1 C. 0 D. -1 E. -2 5. The sequence of monomers in any polymer is this type of structure: A. primary structure B. secondary structure C. tertiary structure D. quaternary structure E. All of these 6. Hydrogen bonds are most important in this type of structure in proteins: A. primary structure B. secondary structure
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Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea in the country. In 1912‚ Brooke Bond & Co. India Limited was formed. Unilever acquired Brooke Bond through an international acquisition. Similarly‚ Lipton’s link with India date back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated Introduction to Lipton The old Liptons‚ Galbraith‚ Templeton and Presto logos In 1871‚ Lipton used his small
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