A $200 million bond portfolio currently has a modified duration of 6.53. In anticipation of a decline in interest rates, the portfolio manager seeks to increase the modified duration of the portfolio to 9.5 by using a Treasury bond futures contract priced at 95,650. The futures contract has an implied modified duration of 12.65 the portfolio manager has estimated the yield beta of her portfolio to be 1 relative to the implied yield on the futures contract. Required:
a. Indicate whether the portfolio manager should enter a short or long futures position.
b. Calculate the number of contracts needed to change the duration of the bond portfolio.
c. Assume that on the horizon date, the yield on the bond portfolio has increased by 30 basis points and the portfolio value has decreased by $3,929,754. The implied yield on futures has increased by 30 basis points, and the futures contract is priced at $ 92,616. Calculate the overall gain on the position (bond plus futures). Determine the ex post duration with and without the futures transaction.

Danielle enjoy working as in certified public accountant (cpa) and assisting small business and individuals with managing their financial and taxes . which general area of accounting is her specialty ?

The monthly sales for yazici​ batteries, inc., were as​ follows: month jan feb mar apr may jun jul aug sept oct nov dec sales 19 20 17 12 11 18 16 17 19 22 21 24 this exercise contains only parts b and c. ​b) the forecast for the next month​ (jan) using the naive method​ = nothing sales ​(round your response to a whole​ number). the forecast for the next period​ (jan) using a​ 3-month moving average approach​ = nothing sales ​(round your response to two decimal​ places). the forecast for the next period​ (jan) using a​ 6-month weighted average with weights of 0.10​, 0.10​, 0.10​, 0.20​, 0.20​, and 0.30​, where the heaviest weights are applied to the most recent month​ = nothing sales ​(round your response to one decimal​ place). using exponential smoothing with alpha ​= 0.40 and a september forecast of 21.00​, the forecast for the next period​ (jan) = nothing sales ​(round your response to two decimal​ places). using a method of trend​ projection, the forecast for the next month​ (jan) = nothing sales ​(round your response to two decimal​ places). ​c) the method that can be used for making a forecast for the month of march is ▾ a 3-month moving average a 6-month weighted moving average exponential smoothing the naive method a trend projection .

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.