Bond valuation | Business & Finance homework help

As a financial adviser to individual investors, your boss has asked you to write a memo to him so that he can recommend a mortgage-backed bond to a client.The client has a particular corporate bond in mind, but your boss thinks that a pass-through mortgage-backed security would provide a better yield at the same risk level and maturity. The bond that the client is considering is a 7-year, AA-rated bond with a 6.75% coupon.When it matures, the proceeds will be used for and are matched exactly with the cost of his daughter’s college education, which will be paid in one lump sum.The bond your boss favors is a pass-through MBS (also 7-year with an AA rating), featuring a 7.15% coupon. Your economic research department just released a research report that predicts that interest rates are going to decline over the next several years to historical lows.

Get a plagiarism free copy of this essay from our experts
Bond valuation | Business & Finance homework help
For as low as $13/Page
Order Now

Write a memo to your boss of at least 300 words that provides the following:

  • Your recommendation
  • At least 3 reasons you considered to develop your recommendation

Shortly after you were given this task, you became aware of a new CMO issue that has an AA-rated, 7-year Class A VADM tranche, with a 7.00% coupon that uses a Z bond to protect against prepayment and extension risk.Write a second memo to your boss of at least 300 words that offers the following:

  • What the acronym VADM means in the context of MBS
  • A description of the new CMO tranche and how it may or may not be a better choice for the client than the corporate bond and the MBS thatyour boss initially recommended

 

Grading Criteria

Content Development:Demonstrates use of appropriate, relevant, and innovative content. All requirements of the assignment are met.

40%

Critical Analysis:Demonstrates ability to evaluate, integrate, and critique a wide range of options, beliefs, abstract ideas, and data to inform judgment, identify and solve problems, and where appropriate, propose new hypotheses.

20%

Research and Information Literacy:Demonstrates selection and use of high-quality, credible, and relevant sources to develop ideas that are appropriate to the assignment. Sources are consistently cited according to required documentation.

20%

Grammar, punctuation, spelling and other mechanics of the English language:Demonstrates correct use of grammar, spelling, punctuation, and other mechanics of the English language.

20%

 

Place your order
(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 15% with the discount code VACCINE