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Hi. I tried to change the signals first I put 101.22 and then 101,22 but I think the value is wrong. 6:34 T Mini-Case: Hedge

Hi. I tried to change the signals first I put 101.22 and then 101,22 but I think the value is wrong. image text in transcribed
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6:34 T Mini-Case: Hedge Fund You are a bond analyst working for a hedge fund. A bond you follow has face value 100, has a coupon rate of 5% (paid once a year) and matures in 5 years. You are trying to find if there is any profitable trading strategy. You've done extensive research and have formed your opinions on future economic conditions. As a result, you expect that there will soon be a major shift in the yield curve. The current and the expected yield curve is shown below: Year Current Expected 1 1% 3.00% N 1.50% 2.50% 3 2.00% 3.50% 4 3.00% 4.00% 5 5.00% 5.00% Previous Unit 3.12 Discounting Risky Cash Flows Next 6:34 T Question 1/3 Question 1/3 0/1 point (graded) Calculate the price of the bond based on the current yield curve? (use 2 decimal digits) 101,22 Submit Previous Next

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