You have entered into a forward contract with the following parameters: Bond: 5 year, zero coupon bond Issuance: Face Value: 1 year spot rate: 10 year spot rate: Group of answer choices Forward price = $704.96 Forward price = $726.11 Forward price = $769.68 Will be issued in 1 year $1000 3 pct. 6 pct.

Give typing answer with explanation and conclusion If a bond is issued at the price of $10,000 per contract and promises a 5.7% interest every year, the contact will be redeemed by the issuer at a discount after 8 years for $9,200. If the market is offering a return of 4.8% for similar risk securities, what would be the price you are ready to offer for this bond? Question 4 options: $10,590 $10,040 $10,290 $9,740

Consider bond A with a face value of $500,000 to be repaid at maturity. The maturity of the bond is 2 years. The coupon rate is 8% per annum and coupon payments are made semiannually. The current market rate is 6% p.a. What is the bond’s duration ? Round your final answer to 2 decimal places. E.g. if the final  answer  is -3.59 years, type -3.59 in the answer box. If the final answer is 3.59 years, type 3.59 in the box .

Bond A has the following terms: (Use semi- annual interest payments if applicable.) Coupon rate of interest: 10 percent Principle: $1,000 Term to maturity: 8 years Bond B has the following terms: (Use semi- annual interest payments if applicable.) Coupon rate of interest: 5 percent Principle: $1,000 Term to maturity: 8 years What should be the price of each bond if interest rates are 10 percent? What will be the price of each bond if, after five years have elapsed, interest rates are 10 percent? What will be the price of each bond if, after eight years have elapsed, interest rates are 8 percent?

A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed at par at the end of this period. It is sold at P1,030. Determine the yield at this price. Manual solution

A bond, described in the exhibit below, is sold for a settlement on 8 April 2021.Annual Coupon rate​​:12%Coupon payment frequency​: monthlyMaturity date*​​: Your ID number(4521) + Settlement dateDay count convention ​: 30 / 360Annual yield to maturity​:9%Face value​​​:1,000 USDCalculate the dirty price (full price), clean price (flat price) and accrued interest (AI). (* Example if your ID number 9876, then 8 April 2021 + 9876 days = 22 April 2048)

According to the expectations theory, what will be the interest rate on a three-year bond if the two-year term premium is 1.0% while the three-year term premium is 2.0%, and a one-year bond has an interest rate of 4% and is expected to have an interest rate of 5% next year and 6% in two year? Select one: Oa. 6.0% O b. 15.0% Oc. 5.0% O d. 4.0%

How much will the coupon payments be of a 10-year $5,000 bond with a 5% coupon rate and semiannual payments? A. $500 OB. $250 OC. $125 OD. $42

The following information relates to a forward contract written on a bond: Bond price = $95 Maturity = 1 year Coupon 1, paid in 6 months = $3; Coupon 2, paid immediately prior to maturity of forward = $2 Riskless rate of interest = 5% What is the forward price? A) $94.43 B $85.77 c) $94.79 D) $93.79

A bond, described in the exhibit below, is sold for a settlement on 8 April 2021.Annual Coupon rate​​:12%Coupon payment frequency​: monthlyMaturity date*​​:  11396 + Settlement dateDay count convention ​: 30 / 360Annual yield to maturity​:9%Face value​​​:1,000 USDCalculate the dirty price (full price), clean price (flat price) and accrued interest (AI). * Example if your ID number 9876, then 8 April 2021 + 9876 days = 22 April 2048