Question 231

A portfolio consists of 2 bonds:Bond | Maturity | Coupon | Duration | Proportion in Portfolio
Bond A | 10 years | 8% | 6.7 | 60% Bond B | 7 years | 5.2% |3.9 | 40%
If there is an upward parallel shift in yields by 61 basis points, what will be percentage change in the portfolio value?
  • Question 232

    Which of the following statements regarding a lessor's direct-financing lease is generally true?
  • Question 233

    An insurance company received prepaid insurance revenue of $10,000 for next year from a local construction firm. The insurance company treats this as unearned revenue for financial reporting purposes. The local tax legislation requires that $8,000 to be treated as taxable income for the current year. As a result, a ______ should be created.
  • Question 234

    eRetailer.com is borrowing $1 million at 10% for a year on a discount basis with a bank. How much in funds are available for use? What is the effective cost of interest?
  • Question 235

    Supernormal profit is also known as: