Question 26 1 pts Use the following information to answer questions 26-29. A 3 year dual currency AAA rated bond (Euro-USD) pays a 7.5% annual coupon in Euros (on a par value of a 1000 Euros). The principal repaid will be US $ 1250. The zero coupon yield curves for 1.2 and 3 year maturity AAA rated Euro denominated bonds and AAA rated US$ denominated bonds are given below. The current spot rate is $ 1.31/Euro. 1 year 2 year 3 year Euro denominated 2.5 % 3.0 % 3.5 % US $ denominated 3.5% 4,0% 4,5% How much would you be willing to pay today in USD for only the bond's coupon payments? USD 207.53 USD 277.08 USD 271.86 USD 211.51 Question 27 1 pts Use the following information to answer questions 26-29. A 3 year dual currency AAA rated bond (Euro-USD) pays a 7.5% annual coupon in Euros (on a par value of a 1000 Euros). The principal repaid will be US $ 1250. The zero coupon yield curves for 1.2 and 3 year maturity AAA rated Euro denominated bonds and AAA rated US$ denominated bonds are given below. The current spot rate is $ 1.31/Euro. 1 year 2 year 3 year Euro denominated 2.5% 3.0 % 3.5 % US $ denominated 3.5 % 4.0% 4.5% How much would you be willing to pay today in USD for the bond's principal payment? USD 1250.00 USD 1095.37 USD 1164.41 USD 1127,43 Question 28 1 pts Use the following information to answer questions 26-29. A 3 year dual currency AAA rated bond (Euro-USD) pays a 7.5% annual coupon in Euros (on a par value of a 1000 Euros). The principal repaid will be US $ 1250. The zero coupon yield curves for 1.2 and 3 year maturity AAA rated Euro denominated bonds and AAA rated US$ denominated bonds are given below. The current spot rate is $ 1.31/Euro. 1 year 2 year 3 year Euro denominated 2.5% 3.0% 3.5 % US $ denominated 3.5 % 4.0% 4.5% How much would you be willing to pay today in USD for this bond (considering both coupons and principal payment)? USD 1332.10 USD 1383.97 USD 1399.29 USD 1372.45 Question 29 1 pts Use the following information to answer questions 26-29. A 3 year dual currency AAA rated bond (Euro-USD) pays a 7.5% annual coupon in Euros (on a par value of a 1000 Euros). The principal repaid will be US $ 1250. The zero coupon yield curves for 1.2 and 3 year maturity AAA rated Euro denominated bonds and AAA rated US$ denominated bonds are given below. The current spot rate is $ 1.31/Euro. 1 year 2 year 3 year Euro denominated 25% 3,0% 3.5% US $ denominated 3.5% 4.0% 4.5% How much would you be willing to pay today in Euros for this bond (considering both coupons and principal payment)? Euros 1068.16 Euros 1124,43 Euros 1056,47 Euros 1047.67
