Question
please help me with most of the questions. they are not worth a lot that why I combined them. thank you q 39 In a
please help me with most of the questions. they are not worth a lot that why I combined them. thank you
q 39 In a plain vanilla interest rate swap, the counterparties exchange:
| the securities that act as collateral for the swap | ||
| the net cash flow (difference between what the two counterparties owe to each other) | ||
| the total cash flow (notional value x fixed or variable rate) | ||
| the fixed rate loans or variable rate loans, depending on which side of the swap the bank takes. |
q27 What is the approximate yield over the 4 year window on a 10% coupon bond, $1000 par, which is currently selling for $940, if you plan to hold it for 4 years? In 4 years you expect the discount rate on similar bonds to be 8%? The maturity of the bonds today is 10 years.
| 11.46% | ||
| 9.54% | ||
| 8.44% | ||
| 13.94% |
q30 The required rate of return of a bond is, in theory, made up of:
| The nominal risk free rate plus the default risk premium | ||
| The nominal risk free rate plus the default risk premium, maturity risk premium and liquidity risk premium | ||
| The real risk free rate plus the default risk premium, maturity risk premium and liquidity risk premium | ||
| The real risk free rate plus the default risk premium and maturity risk premium |
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Real Estate Finance And Investment
Authors: Terrence M. Clauretie, G. Stacy Sirmans
8th Edition
1629809942, 9781629809946
