CODY ou have (strips of what of each)? Use the listing of me of each of your strips. Add the strips and compare the of the bond fa 20-year bond with face value E coupon rate is $900.000 Imate yield to maturity? all that matures on August 2, Jould you have to pay for such a me of Si million? 0. Suppose the price of this security fails Does its yield rise or fall? Can you givet proximate value of the new yield? (Do tempt to calculate it exactly) 10. A bank has 510 billion in assets and S9 billion liabilities. The duration of its assets is 2.2 year The duration of its liabilities is 1.5 years. Mark interest rates rise from 5% to 65. What is the or loss to the bank? 11. You buy a 3-year Japanese government bond wi annual coupons of 45. The exchange rate when you buy the bond is 120W/5. You reinvest the PART ONE PRINCIPLES pons in Japanese government securities at ed of 5. When the bond matures the exchange is 1306/5. What is your holding-period yield? ing the sample of retirement savings in the per how much will you have when you --in terms of today's dollars i intution What is the present value of this so interest rate is 5567 10%? 18. A store offers the same TV for eith $20 down and 18 monthly payment can borrow at 19 a month, should I use the store's payment plan? What Interes t ado Full Image (278K) CODY ou have (strips of what of each)? Use the listing of me of each of your strips. Add the strips and compare the of the bond fa 20-year bond with face value E coupon rate is $900.000 Imate yield to maturity? all that matures on August 2, Jould you have to pay for such a me of Si million? 0. Suppose the price of this security fails Does its yield rise or fall? Can you givet proximate value of the new yield? (Do tempt to calculate it exactly) 10. A bank has 510 billion in assets and S9 billion liabilities. The duration of its assets is 2.2 year The duration of its liabilities is 1.5 years. Mark interest rates rise from 5% to 65. What is the or loss to the bank? 11. You buy a 3-year Japanese government bond wi annual coupons of 45. The exchange rate when you buy the bond is 120W/5. You reinvest the PART ONE PRINCIPLES pons in Japanese government securities at ed of 5. When the bond matures the exchange is 1306/5. What is your holding-period yield? ing the sample of retirement savings in the per how much will you have when you --in terms of today's dollars i intution What is the present value of this so interest rate is 5567 10%? 18. A store offers the same TV for eith $20 down and 18 monthly payment can borrow at 19 a month, should I use the store's payment plan? What Interes t ado Full Image (278K)
