Activity 3 – financial management

Activity 3 – CLO 1, CLO 3, CLO 4, CLO 5 

This activity has two parts, please answer both

1. Two bonds A and B have the same credit rating, the same par value and the same coupon rate. Bond A has 30 years to maturity and bond B has five (5) years to maturity. Please demonstrate your understanding of interest rates risk by answering the following questions :

– Discuss which bond will trade at a higher price in the market

– Discuss what happens to the market price of each bond if the interest rates in the economy go up.

– Which bond would have a higher percentage price change if interest rates go up?

– Please substantiate your argument with numerical examples.

– As a bond investor, if you expect a slowdown in the economy over the next 12 months, what would be your investment strategy?

2. Familiarity with random variables is essential to understand the basics of portfolio theory. Given that  CLA 2 assignment is about portfolio formation, you need to strengthen your skills in dealing with random variables. Please review and explain the significance of basic concepts about random variables, namely, the mean, the variance, the standard deviation, and the correlation.

Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary. Provide your work in detail and explain in your own words. Support your statements with peer-reviewed in-text citation(s) and reference(s). 

Note: 

1. Need to write the assignment in APA 7th edition format. 

2. Provide your explanations and definitions in detail and be precise. 

3. Comment on your findings. 

4. Provide references for content when necessary. 

5. Provide your work in detail and explain in your own words. 

6. Support your statements with peer-reviewed in-text citation(s) and reference(s).

7. Need to include the information from the textbook as the reference.

8. Need to include at least 2 peer-reviewed articles as the reference.

9. Need to provide examples whenever applicable.

10. Please find the related PowerPoint and textbook in the attachment. 

11. Please find the Course Learning Outcome list of this course in the attachment  

Textbook Information:

Ross, S. A., Westerfield, R. W., & Jordan, R. D. (2018). Fundamentals of corporate finance (12th ed.). McGraw-Hill

ISBN: 9781259918957







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10