bond pricing and fund managemet

bond pricing and fund managemet

Bond Pricing and Fund Management (FIN 9070) Coursework Assignment (MSc Finance)
Part A
Here is the extracted spot rate (continuously compounded) and discount rate of Eurodollar US $ bonds as on March end 2013.
discount function    time (yr)    MAR $ 2013, %
0.98546    0.25    5.858675
0.969409    0.5    6.213713
0.953151    0.75    6.397662
0.936374    1    6.574038
0.919172    1.25    6.742519
0.901639    1.5    6.902719
0.883867    1.75    7.054188
0.86595    2    7.196415
0.84798    2.25    7.328818
0.83005    2.5    7.450751
0.812255    2.75    7.561498
0.794686    3    7.660277
0.777437    3.25    7.746239
0.760601    3.5    7.81847
0.744271    3.75    7.876
0.72854    4    7.917808
0.713502    4.25    7.942828
0.699249    4.5    7.949969
0.685874    4.75    7.938126
0.673471    5    7.906199
0.662117    5.25    7.853573
0.651827    5.5    7.781375
0.642601    5.75    7.690989
0.634437    6    7.583632
0.627334    6.25    7.460407
0.621294    6.5    7.32233
0.616313    6.75    7.170367
0.612393    7    7.005444
0.609531    7.25    6.828487
0.607723    7.5    6.640476
0.606964    7.75    6.442393
0.607249    8    6.235207
0.608572    8.25    6.019878
0.610929    8.5    5.797356
0.614313    8.75    5.568577
0.618721    9    5.334459

a) Compute the forward rates on these bonds and interpret results.    (25 marks)

b) Plot the term structure. What does it tell us about the future spot rates?                                                 (25 marks)

Part B
What are the theories of term structure of interest rates?        (25 marks)
(upto 1000 words)

Part C

What factors determine the yield of a bond?                (25 marks)

(500 words)

Submission: Via Turntin  on-line on Blackboard site and hard copy in B&L office, 23th March, 2015, 4pm.

General guidelines
Guidance regarding word limits is given for each question within brackets. The word limit is a strict guideline and relates to maximum words in each question. You should write number of word used after every question. If would be preferable if you could answer briefly using tables or figures.

Ensure that your work is fully and appropriately referenced. Use good quality academic references where possible (not Wikipedia or Investopedia, for example.)
Demonstrate evidence of wider reading.
Qualities looked for in your submission are:
•    Good Presentation
•    Referencing and use of contemporary material
•    Use of theoretical tools
•    Description and analysis in general
•    Intelligent comment and interpretation
Use titles and sub-titles appropriately, also ensure that you write succinctly and use figures and tables to illustrate your work if appropriate.

The work should be presented in Times Roman 12 font and should be double spaced. Page Numbers must be added.

An indicative guide to the application of marks to this assignment is as follows:
Overall result Marking Criteria
Distinction
70%+
Excellent work that will:
•    display a full understanding of area of research and mastery of a significant body of data
•    use full range of sources, used selectively to support argument that provide a coherent and strong argument
•    display originality in analysis and subtlety of interpretation
•    be exceptionally well written and presented
•    present the possibility of publication.
High quality throughout with an excellent understanding of the subject.
(70-79%)
Showing insight and potential for publication with some revisions.( 80-89%)
Exceptional insight and of publishable quality.( 90%+)
Good
Pass
60-69%
The work will:
•    display effective use of main materials, going beyond the standard secondary sources
•    present coherent and concise argument of complex concepts
•    present independent and critical evaluation of a range of theories
•    show some evidence of originality
•    be written and presented to good academic standards.
Well developed argument and evaluation.( 60-64%)
Approaching excellence in some areas.( 65-69%)
Pass
50-59%
The work will:
•    display a sound knowledge of principal materials relevant to area of study
•    present a logical structure, though this may not be fully thought through
•    display some capacity to critically reflect or analyse
•    be unlikely to show evidence of originality
•    be presented and written to adequate academic standards.
Generally accurate and sound understanding of area of study.( 50-54%)
Approached good pass standard in several areas. (55-59%)

Fail
<50
•    Many of the basic materials will be present but the work will be
•    lacking in other areas, such as key information sources and content which will be limited
•    unsophisticated use of key sources
•    poorly structured and sustained argument displaying limited knowledge
•    conceptual understanding, as exemplified in critical evaluation is poor.
•    defects in presentation
•    Overall knowledge limited and poorly presented. (40-49%)
•    Very poor knowledge of subject and weak understanding of issues.( (30-39%)
•    Deeply flawed, containing fundamental mistakes.( <30%)

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48.

ergonomics manual lifting and handling calculating assignment

Project description
Calculate the RWL and LI for the following set of lifting conditions when manually lifting a load weighing 25 lbs:

Horizontal distance of load from body = 18″

Vertical distance of hands above ground level at lift origin = 12″

Vertical distance load is moved = 18″

Angle of trunk rotation = 20 degrees

Frequency of lift = 20 per hour or 0.33 lifts/minute, AND duration is 8 hours

Coupling = Fair

Tip: If any of the above data are not specifically identified in the NIOSH tables, choose a value in the tables that is closest

Does the manual lift present an increased risk of injury, and if yes, why?

After reviewing the calculation, which of the lifting components (horizontal distance, vertical origin, vertical travel distance, etc.) most significantly causes the RWL to be decreased?

Now calculate RWL and LI when the following changes occur to the lift:

Horizontal distance = 12″

Frequency of lift = 10/hour or 0.17 lifts/minute, AND duration remains 8 hours

Does the manual lift present an increased risk of injury, and if yes, why? Has the risk of lower back injury been reduced from the previous set of lifting conditions? Feel free to explain your thoughts.

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