Question 16 (2.5 points)

Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.96154 (1-year), 0.91573 (2-year), 0.87630(3-year), 0.82270 (4-year), 0.77611 (5-year). What is the 4-year zero-coupon bond yield?

Question 16 options:

	3.999834%
	4.499997%
	4.499865%
	5.000079%
	5.199904%

Question 17 (2.5 points)

Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.96154 (1-year), 0.91573 (2-year), 0.87630(3-year), 0.82270 (4-year), 0.77611 (5-year). What is the continuously compounded zero yield for the 5-year bond?

Question 17 options:

	3.921911%
	4.401686%
	4.401559%
	4.879092%
	5.069220%

Question 18 (2.5 points)

Suppose the September Eurodollar futures contract has a price of 96.6. You plan to borrow $25,000,000 for 3 months in September at LIBOR, and you intend to use the Eurodollar contract to hedge your borrowing rate. How many contracts will you enter into?

Question 18 options:

	75
	50
	25
	100
	125

Question 19 (2.5 points)

A Forward Rate Agreement contains an agreed interest rate of 3.1% on a 6-month loan. If settled in arrears, what amount would the borrower pay or receive on a $500,000 loan if the prevailing 6-month interest rate is 2.9%?

Question 19 options:

	$1,000 payment
	$1,000 receipt
	$972 payment
	$972 receipt
	$1,459 payment
	$1,459 receipt

Question 20 (2.5 points)

Given zero-coupon bond yields are 5.2%, 5.5%, and 5.8% in years 1, 2, and 3, respectively, calculate the swap price for corn. Assume corn forward prices for the proceeding 3 years are $2.10, $2.25, and $2.35, respectively.

Question 20 options:

	$2.21
	$2.23
	$2.28
	$2.31
	$2.36