What is bond A's contribution to duration-times-spread?
What will be an ideal response?
The contribution of a bond or bond sector to a portfolio, referred to as contribution to portfolio DTS, is the product of the DTS and the weight of that bond or bond sector in the portfolio. For our problem, we have weight in aportfolio = 0.06 and DTS = 0.05, thuscorporate bond A's contribution to portfolio is
Contribution to portfolio DTS = 0.06× 0.05= 0.003= 30 bps
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What will be an ideal response
A product's life cycle is divided into four stages, which are:
A) introduction, growth, saturation, and maturity. B) introduction, growth, stability, and decline. C) introduction, maturity, saturation, and decline. D) introduction, growth, maturity, and decline. E) incubation, growth, maturity, and decline.