Compute the change in the portfolios value based on its


You own a bond portfolio worth ?$250,218. You estimate that your portfolio has an average? yield-to-maturity of 3.7?% and Macaulay Duration of 14.4 years. If interest rates went down one percentage point and your? portfolio's yield-to-maturity changed by the same? amount, what would be the new value of your bond? portfolio? ?

Step? 1: Compute DV01 as the? portfolio's MacD divided by 1 plus the? portfolio's YTM, multiplied by the value of the portfolio and divided by 100.

Step? 2: Compute the change in the? portfolio's value based on its starting value given in the question and the estimated change in value from Step? 1).

The new portfolio value would be $ ___________ (Round to a whole? number.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Compute the change in the portfolios value based on its
Reference No:- TGS02715824

Expected delivery within 24 Hours