An excel workbook showing the details of your calculations is required for submission, in addition to your written report.
1)Using the latest Treasury rates from https://www.treasury.gov/resource-center/data-chart- center/interest-rates/Pages/TextView.aspx?data=yield, estimate the forward interest rate for next year.
2)
a) Estimate the modified duration for 2 IBM bonds from http://quicktake.morningstar.com/StockNet/bonds.aspx?Symbol=IBM&Country=USA (scroll down to see bond details).
b) Considering future movements of interest rates, which of the 2 bonds would you recommend for a buyer who wants to maximize capital gains (or minimize capital losses)?
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