Need help decoding Q 9B

Susan Winslow manages bond funds denominated in US Dollars, Euros, and British Pounds. Each fund invests in sovereign bonds and related derivatives. Each fund can invest a portion of its assets outside its base currency market with or without hedging ...

how  does  value  of   mezzanine  tranche  increase   relative   to  value  senior tranche  when  default   correlation   increase  can  you explain  this   concept

Please explain why the answer is B

An active fixed-income manager is evaluating the relative performance of an investment-grade corporate versus a high-yield corporate debt allocation in a fixed-income portfolio. Which of the following analytical model assumption changes is most likely to reduce the future value of ...

Ruelas explains that he uses futures contracts on euro-denominated German government bonds to reduce the duration gap between assets and liabilities. However, because the pension fund has only a small surplus and he would like to increase this surplus through active management of the ...

Please explain how -3.518% change in PF B is calculated?

Shouldn’t the E(R) for A be negative because interest rate is rising so bond price should fall?

We are given a bond portfolio x and a benchmark , Benchmark has 93 Bonds in a mix of AAA to BBB category Portfolio x has 97 Bonds in a mix of AAA to BBB category   Benchmark has duration 6 Portfolio x has duration ...

We need to replicate a benchmark of highly liquid 20 government bonds with lowest cost and low tracking error , which approach to use ?a. Pure indexingb. Enhanced indexingc. Active management   Can you please give answer with reason ...