Question
As a junior financial analyst at Citibank bond trading desk, John is analyzing the forward rate using the information from zero coupon bonds. Suppose 3
As a junior financial analyst at Citibank bond trading desk, John is analyzing the forward rate using the information from zero coupon bonds. Suppose 3 year zero coupon bond is priced at $839.60 and 4 year zero coupon bond is priced at $822.80. Choose all correct answers. Please note that each incorrect answer will reduce the score by 10%.
| a. | The 4 year zero coupon bond which is priced at $822.80 will have a YTM of 7% | |
| b. |
The forward rate from year 3 to 4 is 3.04%
| |
| c. | The 3 year zero coupon bond which is priced at $839.60 will have a YTM of 8%. | |
| d. | The 3 year zero coupon bond which is priced at $839.60 will have a YTM of 6%. | |
| e. | The 4 year zero coupon bond which is priced at $822.80 will have a YTM of 5% | |
| f. |
The forward rate from year 3 to 4 is 2.04%
| |
| g. | The 3 year zero coupon bond which is priced at $839.60 will have a YTM of 7%. | |
| h. |
The forward rate from year 3 to 4 is 4.04%
| |
| i. | The 4 year zero coupon bond which is priced at $822.80 will have a YTM of 6% |
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Biblical Finance Reflections On Money Wealth And Possessions
Authors: Mark Lloydbottom, Keith Tondeur
1st Edition
0956395023, 978-0956395023
