Problem #5 : The function s()-0 16-0.03 e-t/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in years. Find the following: (a) The effective annual rate of a 3 year zero coupon bond. (b) The 2-year forward effective annual rate for a one year period. (c) The forward effective annual rate for a one year period, 3 years forward (d) The 3-year forward effective annual rate for a 3 month period (e) The forward effective annual rate for a one day period, 3 years forward (the "overnight" rate) Use 1736 for a one-day period.) Answer as a percentage correct to 2 decimals Problem #5(a): 14.58 Answer as a percentage correct to 2 decimals Problem #5(b): 15.39 Answer as a percentage correct to 2 decimals Problem #5(c): 115.84 Answer as a percentage correct to 2 decimals Problem #5(d): 3.72 Answer as a percentage correct to 2 decimals Problem #5(e): .039 Just Save Submit Problem #5 for Grading Problem #5 | Attempt #1 | Attempt #2 Your Answer: 5(a) 14.585(a) Attempt #3 Attempt #4 Attempt #5 5(b) 15.39 5(b) 5(c) 15.84 5(c) 5(d) 3.71 5(e).04 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(c) 5(d) 5(e) 5(d) 3.72 5(e) .039 Your Mark:5(a) 2/25(a) 5(b) 2/2 5(b) 5(c) 2/2 5(c) 5(d) 0/2X 5(e) 0/2x 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(c) 5(d) 5(e) 5(d) 0/2X 5(e) 0/2X Problem #5 : The function s()-0 16-0.03 e-t/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in years. Find the following: (a) The effective annual rate of a 3 year zero coupon bond. (b) The 2-year forward effective annual rate for a one year period. (c) The forward effective annual rate for a one year period, 3 years forward (d) The 3-year forward effective annual rate for a 3 month period (e) The forward effective annual rate for a one day period, 3 years forward (the "overnight" rate) Use 1736 for a one-day period.) Answer as a percentage correct to 2 decimals Problem #5(a): 14.58 Answer as a percentage correct to 2 decimals Problem #5(b): 15.39 Answer as a percentage correct to 2 decimals Problem #5(c): 115.84 Answer as a percentage correct to 2 decimals Problem #5(d): 3.72 Answer as a percentage correct to 2 decimals Problem #5(e): .039 Just Save Submit Problem #5 for Grading Problem #5 | Attempt #1 | Attempt #2 Your Answer: 5(a) 14.585(a) Attempt #3 Attempt #4 Attempt #5 5(b) 15.39 5(b) 5(c) 15.84 5(c) 5(d) 3.71 5(e).04 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(c) 5(d) 5(e) 5(d) 3.72 5(e) .039 Your Mark:5(a) 2/25(a) 5(b) 2/2 5(b) 5(c) 2/2 5(c) 5(d) 0/2X 5(e) 0/2x 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(c) 5(d) 5(e) 5(a) 5(b) 5(c) 5(d) 5(e) 5(d) 0/2X 5(e) 0/2X
