0 Darshan KadamIntermediate Asked: July 23, 20212021-07-23T17:26:01+05:30 2021-07-23T17:26:01+05:30In: Fixed Income (CFA L1) Fixed income 0 Q40 and Q43 Share Sorry, you do not have permission to answer to this question. 1 Answer Oldest Shivam Khaitan1 Pro 2021-07-23T20:59:14+05:30Added an answer on July 23, 2021 at 8:59 pm Q40 will be same as I showed you in your previous question. Just replace with MD 7.020 with ED 10.5 & use the given BP shock. Q43. An investor while selling his bond prior to maturity enjoys/suffers a capital gain/loss. The SP is compared with the carrying value. To calculate the carrying value is calculated using the yield at the time of issuance and the maturity left. In this question. Put: 800000 FV (18-3)= 15 N I/Y 7.5 CPT PV- 278,031.599 =0278032 Now since the value(carrying value) of the bond was was less than the SP 346,333. He enjoys a capital gain of 68301 Hope it helps
Q40 will be same as I showed you in your previous question. Just replace with MD 7.020 with ED 10.5 & use the given BP shock.
Q43. An investor while selling his bond prior to maturity enjoys/suffers a capital gain/loss. The SP is compared with the carrying value.
To calculate the carrying value is calculated using the yield at the time of issuance and the maturity left.
In this question.
Put:
800000 FV
(18-3)= 15 N
I/Y 7.5
CPT PV- 278,031.599 =0278032
Now since the value(carrying value) of the bond was was less than the SP 346,333. He enjoys a capital gain of 68301
Hope it helps