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Portfolio Activity Unit 4
The Portfolio entry should be a minimum of 250 words and not more than 750 words. Use APA citations and references if you use ideas from the readings or other sources. For this week’s portfolio activity, please advise the instructor of the following:

  • Utilizing the information provided in your course textbook(s) or other valid sources, briefly compare the coupon rate and the interest rate regarding bonds. What is a par value?
  • Describe the impact of a tax shield on fixed income yields.
  • Please provide a brief update to the instructor on how you feel you are doing so far this term.

 
 
Written Assignment Unit 4
Instructions for submission 
Submit a written paper which is 2-3 pages in length, exclusive of the reference page. Papers should be double spaced in Times New Roman (or its equivalent) font which is no greater than 12 points in size. The paper should cite at least one source independent of the textbook.
In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study’s question with a recommendation.
Case Study
A friend has confided in you that they have recently inherited a moderately sized investment portfolio from a relative. They don’t know what to do with the assets. The friend comes to you for advice. Your immediate advice, of course, is for your friend to seek professional advice from a tax expert as well as a financial adviser. Your friend persists, however, and asks how the investment returns of the portfolio compare to other investments. You agree to review the portfolio and calculate the yields of each investment as well as determine the weighted average yield for the entire portfolio.
To complete this assignment, download and refer to the investment schedule (Excel file). For your quantitative analysis compute the current market value of each security position of the portfolio, calculate individual yields based on current market pricing, and determine the weighted average factor and the weighted average yields.

  • Explain the basis upon which you determined the weighted average yield.
  • Explain the difference between a yield that is based on cost, as opposed to one that is based on current market value.
    • What are the different uses of both?
  • What non-quantitative observations can you make about the portfolio?

Although you can transfer tables from Excel into Word, include the original Excel file in addition to the Word file with your submission.
Papers will be assessed using the following criteria:

  • The solved solutions for:
    • The current market value of each security position of the portfolio.
    • Individual yields (estimated current yield) based on current market pricing.
    • The weighted average factor.
    • The weighted average yields.
  • An explanation of how the weighted average yield was determined.
  • An explanation for the difference between a yield that is based on cost, as opposed to one that is based on current market value. The explanation discussed the different uses of both.
  • Non-quantitative observations (conclusion) about the portfolio.

This assignment will be assessed using the BUS 5111 Written Assignment rubric and the Written Assignment Solution Unit 4 (located in Unit 5).
Discussion Assignment Unit 4
 
In the discussion forum, you are expected to participate often and engage in deep levels of discourse.  Please post your initial response as early as possible and continue to participate throughout the unit. You are required to post an initial response to the question/issue presented in the Forum and then respond to at least 3 of your classmates’ initial posts.  You should also respond to anyone who has responded to you.
Your Discussion should be a minimum of 250 words in length and not more than 450 words. Please include a word count. Following the APA standard, use references and in-text citations for the textbook and any other sources.
For this week’s discussion:

  • Explain corporate bond interest in terms of cost of capital versus investor yields. Also, explain the municipal bond interest in terms of investor yields.