Government bonds

 

 

 

Part 1: (20 Marks) A. Calculate the dirty price, clean price, modified duration and modified convexity of the Government bonds as at the end of January 2020 and the end of July 2020. Discuss your results. (7 marks) B. Calculate the holding period return in each bond. Discuss your results. (5 marks) C. Calculate the modified duration and modified convexity for an equally-weighted portfolio of the four bonds (25% weight for each bond) at both dates (that is, both at the end of January 2020 and the end of July 2020). Estimate the holding period return for the portfolio over the six months between the two dates. Report on your findings. Compare and contrast the return and volatility of the portfolio, and the separate bonds at both dates. Discuss your results. (8 marks) Part 2: (20 Marks) A. Construct and present a yield curve, spot curve and forward curve as at the end of January 2020 and the end of July 2020. Consider the government bond information on the RBA website. Your spot curve and forward curve estimation should go out no more than five years. Present and discuss your findings. (8 marks) B. Review the predictive ability of the yield, spot and forward curves with the comprehensive reference to the relevant academic literature. Discuss the curves that you have estimated in Part 2 (A) regarding this literature. Consider the current COVID-19 pandemic issue, does the January 2020 forward curve appear to predict the six-month spot rates in July 2020? Comment. (12 marks)

 

 

Sample Solution

 

How Hamlet was Influenced by Others
In Denmark ‘s prince Hamlet, Hamlet was easily influenced, he relied on his father, mother, and members of the Fortinbras army to decide whether to kill his current uncle’ s claudius. Hamlet ‘s father’ s ghost influenced him to prove Claudius’ s guilt for revenge. Hamlet ‘s mother, Gertrude, influenced Hamlet’ s behavior, letting him try attacks and revenge. Hamlet had a conversation with Captain of the Fortin Brass army. And it ended it by influencing him to eventually meet his situation and finally killing Claudius.

Hamlet’s corruption is due to the influence of other characters in the drama. The sorrow for Hamlet ‘s father’ s death was caused by Claudius, Claudius poisoned King Hamlet. Not only did Hamlet have to deal with his father’s death, he was also very sad because of the hasty marriage between Gertrude and Claudius. In an effort to explain to Claudius and Gertrude, he spent several months’ sorrow for depression. In this extreme emotional expression, Hamlet noticed that his sorrow is not only in his appearance. And it looks better than anyone else. . Claudius insensively suggested that Hamlet constrains his “shameless sorrow” (I. ii. 94). Claudius’ selfishness and manipulation made Hamlet press too much emotion. Hamlet considered suicide and claimed that his life was meaningless:

In Denmark ‘s prince Hamlet, Hamlet was easily influenced, he relied on his father, mother, and members of the Fortinbras army to decide whether to kill his current uncle’ s claudius. Hamlet ‘s father’ s ghost influenced him to prove Claudius’ s guilt for revenge. Hamlet ‘s mother, Gertrude, influenced Hamlet’ s behavior, causing him to attack and let him try revenge. – … Hamlet showed the ability to fence in the last scene, and Fortinbras made him a fine like a soldier, “The four captains go up to the stage like soldiers with Hamlet Do it … .. “(5.2.441 – 442), Hamlet is a soldier. He can not imagine that he will regain his life again. Humans share a very fierce past as a whole. For centuries war has been done with greed and the name of God.

Mistakes and prejudice against women affect the recognition of Gertrude by other people in the drama and influence Hamlet’s interpretation. The anger of Hamlet, the indulgence of Claudius contempt, and the sad disappointment of ghosts are often thought to accurately reflect the character of Gertrude. The relationship between Gertrude in the play and other characters reveals the ability of her to get deep emotions. She is sincere and hypocritical. Despite all these positive factors she is not a particularly strong role. Gertrude brought “the living thing so far” to the limit. She rarely thinks about the future or the past

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