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Mark Swift Is in the Process of Deciding Whether to Make

question 68

Essay

Mark Swift is in the process of deciding whether to make a major commitment or not in the Asian market.If Mark decides to expand into this market it will commit his company for at least ten years.Write a one to two paragraph summary of why Mark should expand into Asia.You may cite product or industry successes to support your contention.


Definitions:

Price Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating how much and how quickly the value of an asset changes.

Convexity

A measure of the curvature in the relationship between bond prices and bond yields, indicating how the duration of a bond changes as the interest rate changes.

Zero-Coupon Bonds

Debt securities that are issued at a discount and redeemed at face value but do not pay interest during their lifetime.

Immunize

A strategy in finance to shield a portfolio from interest rate movements by aligning the duration of assets and liabilities, thus stabilizing its overall value.

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