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a) It is March 2020. What is the price of a zero-coupon bond with a face value of $1,000 and a nine year spot rate

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a) It is March 2020. What is the price of a zero-coupon bond with a face value of $1,000 and a nine year spot rate of 4.55%? The bond matures in March 2029 (nine years from today) $670.01 ) $640.85 ) $1,000 I $455.00 (no explanations necessary) b) It is March 2020. A zero-coupon bond that matures in March 2040 (twenty years from today) is currently trading at $772.35. The face value is $1,000. What is the twenty-year spot rate? 1) 1.30% 11) 2.02% ii) 2. 30% iv) 2.60% (no explanations necessary) c) An annual coupon-paying bond has a coupon rate of 8%. The yield-curve is flat. Specifically, the annual spot rate equals 4%. The bond has a maturity of 20 years and a face value of $1,000. What's the price of the bond? 1) $1,543.61 il) $1,000.00 ii) $1,327.03 iv) $400.00 (no explanations necessary) d) Social Enterprise Group at Cornell (SEGC) just issued a 15-year, 10% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the required return on the bond is 8% (the yield curve is flat, what is the bond's price? 1) $1024.89 ) $1171.19 1) $1158.42 i $1033.87 (no explanations necessary)

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