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QUESTION 1 2 points Save Answer Assume you are going to issue a 10 year bond and the risk free yield for a 10 year
QUESTION 1 2 points Save Answer Assume you are going to issue a 10 year bond and the risk free yield for a 10 year bond is 2.633, and the yield for the 5 year bond is 2.576. Your default risk premium is 4.17. What is your bond's yield to maturity? (calculate to 3 digits) QUESTION 2 2 points Save Answer Assume you are going to issue a 10 year bond and the risk free yield for a 10 year bond is 4.955, and the yield for the 5 year bond is 1.447. Your default risk premium is 3.902. What is your bond's yield to maturity? (calculate to 3 digits) QUESTION 3 2 points Save Answer Assume you are going to issue a 10 year bond and the risk free yield for a 10 year bond is 1.865, and the yield for the 5 year bond is 2.044. Your default risk premium is 1.46. What is your bond's yield to maturity? (calculate to 3 digits) QUESTION 4 2 points Save Answer Calculate the value of a one year Zero Coupon bond that pays $1000 at maturity (a year from now), if the current one year rate is 0.45602, the default risk premium is 3.81522. (I'm giving you a 1% leeway - hint use excel (or a calculator))
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