Exam 1 Type 2 33. Consider the following $1,000 par value zero-coupon bonds Vield to Maturity Bond Years to Maturity 6.00% 7.50% 7.99% 8.49% 10.70% B. What is the expected one-year interest rate (forward rate) in the second year? (6 points) o g +.06 Suppose that Intel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. The maintenance margin is 25 34. 375 a. What is the original margin in your account? (4 points) ype 2 b. If the price of Intel immediately changes to $36, do you receive a margin call? Explain. (assume the price fall immediately so no interest) (4 points) What is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if Intel is selling after one year at $44? Assume that Intel pays no dividends. (4 points) c