3. Suppose you have invested in the bonds below (they are all semi-annual). You own $1 MM of par value of bond A, $1 MM of par value of bond B, and $2 MM of par of bond C. Find the D' and DV01 of your portfolio. Bond Maturity (Yrs) Coupon Rate YTM FV 2.3% 3.15% 4.05% 2.15% $100 4.85% $100 5.50% $1,000 5. B. 8 10

Q: Draw ALL products of the following NH + H2O -->

A: Approach to solving the question: Detailed explanation: Examples: Key references:

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Q: 4. What is sensitivity analysis?

A: What Is Sensitivity Analysis?

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.