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Need help with these Finance questions. Please see attached document below Problem 25-14 Forward Pricing You enter into a forward contract to buy a 10-year,
Need help with these Finance questions. Please see attached document below
Problem 25-14 Forward Pricing You enter into a forward contract to buy a 10-year, zero coupon bond that will be issued in one year. The face value of the bond is $1,000, and the 1-year and 11-year spot interest rates are 5.9 percent and 7.9 percent, respectively. a. What is the forward price of your contract? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) $ Forward price b. Suppose both the 1-year and 11-year spot rates unexpectedly shift downward by 1.5 percent. What is the new price of the forward contract? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) $ New forward price Problem 25-4 Marking to Market You are long 10 gold futures contracts, established at an initial settle price of $1,540 per ounce, where each contract represents 100 ounces. Over the subsequent four trading days, gold settles at $1,541, $1,532, $1,540, and $1,545, respectively. Calculate the profit or loss for each trading day. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) Day 1 Profit/Loss $ Day 2 Day 3 Day 4 $ $ $ Compute your total profit or loss at the end of the trading period.(Input amount as a positive value. Do not round intermediate calculations.) $ (Click to select) Problem 25-8 Duration Blue Steel Community Bank has the following market value balance sheet: Asset or Liability Market Value(in $ millions) Duration(in years) Federal funds deposits Accounts receivable Short-term loans Long-term loans Mortgages Checking and savings deposits Certificates of deposit Long-term financing Equity $ 30.0 576.4 340.7 98.6 486.3 0 .30 .75 5.35 12.95 635.0 0 410.4 336.2 1.70 9.90 N/A 150.4 a. What is the duration of the assets? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Duration years b. What is the duration of the liabilities? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Duration yearsStep by Step Solution
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