Fill a form in 3 easy steps - less than 5 mins.
Posted: November 6th, 2022
FNCE 3170
Assignment Fall 2022
Juanita Lopez is the client, and you are her portfolio manager. The year is 2022 and she is retiring now at age 65. Juanita’s life expectancy is age 85. Ms. Lopez’s investment fund is $3.5 million. She has asked you to develop a bond portfolio that will generate $230,000 starting in one year (2023). To maintain the purchasing power (keep up with inflation) of her retirement income you anticipate 1% growth per annum in her synthetic pension.
Constraints on the bond portfolio are:
1. All bonds are selected from the provided NYSE bond market file.
2. Assume the market price of all bonds is par value of $1000. Given this simplification, you cannot choose any bond with a coupon rate greater than 4.5%.
3. Once a bond is put into the investment portfolio you only receive the coupon, maturity value (if it matures), and reinvest at the stated rate below.
4. Bond coupon and par value (at maturity) cash flows will be reinvested at 2% per year unless used for payment to Ms. Lopez.
5. Assume coupon cash flows and maturity value are on the birthday of Juanita. That is, a coupon or maturity value received in 2023 is on the birthday of Juanita regardless of actual date in 2023 and so on.
6. You cannot borrow funds.
7. You must meet the required annual income payment.
8. Investment grade only bonds are to be included in the investment portfolio.
9. The minimum market value weighted bond rating of the bond portfolio is A grade.
10. You cannot invest more than 10% of your capital in any one bond or issuer.
Show your constructed bond portfolio (for each bond the total value and bond rating), cash flows generated for each year from coupon and maturity value and reinvested funds, and client income needs.
Submit as ONE file in the Moodle course website dropbox by 12 noon on November 14, 2022. Late submissions will incur a penalty.
You Want Quality and That’s What We Deliver
Our writing team is assembled through a rigorous selection process, where we handpick accomplished writers with specialized expertise in distinct subject areas and a proven track record in academic writing. Each writer brings a unique blend of knowledge and skills to the table, ensuring that our content is not only informative but also engaging and accessible to a general college student audience
Competitive pricing is a cornerstone of our service, where we balance affordability with exceptional quality. In offering the best writers at rates that rival other writing services, we ensure that students can access top-notch content without breaking the bank unnecessarily. Our fair and transparent pricing structure is designed to provide value for money, making us a go-to choice for students seeking high-quality writing services at an affordable price.
Academic integrity is paramount to our writing service, which is why we produce original research and writing content for every paper. Each piece of work is carefully written from scratch, ensuring that every sentence, paragraph, and page is authentic and free from plagiarism. Our rigorous quality control process involves thorough scanning of every final draft, guaranteeing that the content meets the highest standards of originality and academic integrity. With keen attention to citation and referencing, we ensure that every source is properly credited, giving you complete peace of mind. We also have the best plagiarism checkers like safeassign and turnitin thus providing similarity score for each paper.
When you decide to place an order with Dissertation Help, here is what happens: