A Bond Maturing in 5 Years Has a YTM =

question 15

Multiple Choice

A bond maturing in 5 years has a YTM = 0.065 and an annual yield volatility of 2.0%.Given a $15 million portfolio,what is the value at risk over 2 weeks at a 95% confidence level?

• A) $283,917
• B) $383,917
• C) $483,917
• D) $583,917

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Definitions:

Alkene

Hydrocarbons that contain at least one carbon-carbon double bond, involved in various organic reactions.

Products

Substances resulting from a chemical reaction, found on the right side of the chemical equation.

Ozonolysis-Reduction

A chemical reaction where a carbon-carbon double bond is cleaved by ozone, forming ozonides, which are then reduced to yield alcohols, aldehydes, or ketones.

Alkene

Unsaturated hydrocarbons containing at least one carbon-carbon double bond.