Homework

1. Suppose that you purchase a T-bill maturing in 133 days for 9.993,793 $. The face value is 10.000 $. What is the discount yield? (1 year = 360 days) a) 0,158% b) 0,148% c) 0,168% d) 0,170% e) Other 2. At-bill that is 225 days from maturity is selling for 95.850 S. The t-bill has a face value of 100.000 $. What is the effective annual rate? (1 year=360 days) a) 6,64% b) 6,96% c) 7,02% d) 7,13% e) Other 3. Suppose that you invest in a bond that has a maturity of 5 years and a face value of 10.000 $. The coupon rate is 15% and pays annually. The yield to maturity is 20%. What would be the dirty price at the end of year 3? a) 10.205,63 $ b) 10.446,76 c) 10.736,11 $ d) 11.083,33 $ e) Other 4. Suppose that you invest in a T-bill with a 90-day maturity and a face value of 1.000 $ selling at a discount of 10%. Assume that 1 year = 360 days. What would be the effective annual return on your investment? a) 10,66% b) 2,56% c) 10,81% d) 10,38% e) Other: 5. What would be the value of a bond that has a maturity of 5 years, quarterly coupon payment frequency, a face value of 1.000 $ and a 15% of coupon rate? Suppose that market interest rate is 12%. a) 1.111,58 $ b) 895,78 $ c) 1.000,00 $ d) 1,110.40 $ e) Other: 6. An investor wants to value a 5-year bond with a face value equal to 1.000 $ that pays coupons semi-annually. The annual coupon rate and annual market interest rate equal to 8% and 10%, respectively. What would be the discount or premium on the bond? al 922,78 $ b) 1.081,11 $ c) 77,22 $ d) 81,11 $ e) Other