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Cash Flow Matching - Shell File

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muskaan.k1
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30 views2 pages

Cash Flow Matching - Shell File

Uploaded by

muskaan.k1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Minimum-Cost Bond Portfolio by Cash-Matching Meth

Bond A Bond B Bond C

Principal of all bonds ###


Setlement Date 6/15/2002
Current annual rate of interest 5.75%
Coupon payments per year 1
Basis 3
Years to maturity 3 5 9
Maturity date 6/14/2005 ### ###
Annual coupon rate 4.95% 6.15% 5.65%
Bond price $978.53 Err:502 Err:502
Number to buy and initial bank deposit 100 100 100
Cost $97,853 Err:502 Err:502

Year-End Income and Account Balance,


Year Bond A Bond B Bond C
1 $4,950 $6,150 $5,650
2
3 $4,950
4
5
6
7
8
9
10
11
12
y Cash-Matching Method
Bank
Bond D Total
Account

12
###
6.25%
Err:502
100
Err:502
Annual increase in cash required 3.50%
me and Account Balance, $1000 Cash Bank
Bond D Account Total Required Balance
$6,250

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