A 3-year bond offers a 6% coupon rate with interest paid annually. Assume the 1-year spot rate
is 8%, the 2-year spot rate is 9%, the 3-year spot rate is 10%, the yield-to-maturity of the bond
is closet to: - 9.92%
Bond dealers most often quote the: - flat price
A 6% German corporate bond is priced for settlement on 19 June 2015. The bond makes
semiannual coupon payments on 19 March and 19 September of each year and matures on 19
September 2026. Using the 30/360 day-count convention, and if the YTM of the bond is 8%, the
flat price of the bond is closet to: - 85.33
The annual yield-to-maturity, stated for with a periodicity of 12, for a 4-year, zero-coupon bond
priced at 75 per 100 of par value is closest to: - 7.21%
A 5-year, 5% semiannual coupon payment corporate bond is priced at 104.967 per 100of par
value. The bond's yield-to-maturity, quoted on a semiannual bond basis, is 3.897%.An analyst
has been asked to convert to a monthly periodicity. Under this conversion, theyield-to-maturity
is closest to: - 3.87%
To raise the federal funds rate, the Fed most likely to: - borrow cash reserves from banks
Assume the 1-year spot rate is 8%, the 2-year spot rate is 9%, the 3-year spot rate is 10%, the
three-year zero price is closet to: - 0.7513
Assume the two-year zero price is 0.90, the 2-year spot rate is closet to: - 5.41%
Assume the one-year zero price is 0.9259, the price of a 2-year 10% annual coupon-paying bond
is 109.259. The two-year zero price is closet to: - 0.9091
Assume the 1-year spot rate is 5%, the price of a 2-year 10% annual coupon-paying bond is
105.602. The two-year zero price is closet to: - 0.8734
Given spot rates for one-, two-, and three-year zero coupon bonds, how many forwardrates can
be calculated? - 3
Consider spot rates for three zero-coupon bonds: r(1) = 3%, r(2) = 4%, and r(3) = 5%.Which
statement is correct? The forward rate for a one-year loan beginning in one yearwill be: - less
than the forward rate for a one-year loan beginning in two-years
The one-year spot rate r(1) = 4%, the forward rate for a one-year loan beginning in oneyear is
6%, and the forward rate for a one-year loan beginning in two years is 8%. Whichof the
following rates is closest to the three-year spot rate? - 6.0%