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Need quick and urgent answers ASAP A bond pays annual coupons at a rate of 5.5%. Its face value is $1000. The bond has exactly
Need quick and urgent answers ASAP
A bond pays annual coupons at a rate of 5.5%. Its face value is $1000. The bond has exactly three years until it matures. The price of the bond is 1039.53. The two-year spot rate is 5% and the three-year spot rate is 4%. The one year spot rate is closest to which figure? a. 7.18% b. 6.28% c. 6.48% d. 5.67% e. 7.51% You expect to receive a specific sum of cash in the year 2099 . You previously calculated the PV of this cashflow at 8.4 million. Now, 31 months later, you revisit your calculations and decide that all the assumptions you previously made remain valid, and that you should use an annual discount rate of 5%, as you did before. All that has changed is today's date. What would you now estimate the PV to be? a. 8.4 b. 7.41 c. 10.03 d. 9.53 e. 38.12 A specific zero coupon bond matures in 13 years and is trading at a YTM of 8%. By how much will the price change if the yield increases by 0.01% ? a. 0.120% b. 0.130% c. 0.120% d. 0.112% e. 0.01%Step by Step Solution
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