Bloomberg Bonds

Issuer Coupon Maturity YTM Modified DV01 Par Full S&P

% % Duration $ Amount Price Credit
(Year) (million) (000) Rate
Treasury 6.5 2/15/10 4.55 6.56 50,109.87 67 76,387
Treasury 5.625 5/15/08 4.64 5.48 54,121.57 92 98,762
Treasury 5 8/15/11 4.57 7.77 203,838.95 84 87,192
Treasury 6.56 172,095.69 262,341
Sector
Time Warner 8.18 8/15/07 5.47 4.72 44,231.12 82 93,710 BBB+
Enterprise
Texas 6.375 1/1/08 6.19 5.06 15,523.06 30 30,678 BBB
Utilities
Rockwell 6.15 1/15/08 6.04 5.13 26,735.52 52 52,837 A
International
Transamerica 9.375 3/1/08 6.34 4.93 8,600.38 15 17,445 AA-
Corporation
Coastal 6.5 6/1/08 6.76 5.25 15,830.32 30 30,153 BBB
Corporation
United 6.831 9/1/08 5.99 5.51 22,011.89 38 39,949 A-
Airlines
Burlington 7.34 9/24/08 5.67 5.36 1,817.04 3 3,390 A+
Northern
Santa Fe
News 7.375 10/17/08 6.56 5.34 17,243.92 30 32,292 BBB-
America
Holding
Litton 8 10/15/09 6.70 5.81 38,830.55 60 66,834 BBB-
Industries
America 7.625 2/15/10 7.59 6.10 25,212.52 41 41,332 BB+
Standard Inc.
Caterpillar 9.375 8/15/11 6.01 6.79 18,759.41 60,000,0 A+
Inc. 00
Corporate 5.39 235,137.67 436,248
Sector
Portfolio 5.83 402,030.38 698,589

Portfolio yield

1.Calculate portolio yield composed of the entire bond in Texas utilities, Transamerica, United airline,
and Litton Industry. Assume the four bonds respectively have maturity of 4, 5, 6 and 7 years .To
calculate portfolio yield you need to estimate price of each bond assuming respective yield,
coupon in the exhibit with the maturity that is given. Use the total market value as an input in
excel. Use the cashflows from the entire bond portfolio for 7 period as your input into IRR.

2. Calulate the terminal value of the above portfolio assuming the proceeds from the portolio is
invested at 3, 4. and 4.5 percent.