A 4-year SGS has a coupon rate of 8% and is priced at $115 today (par value is $100). In addition, you obtain the following spot rate schedule. All rates are semi-annual compounded. What is the spot rate at year 4?
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- Compute the price of a 5-year 6.4% coupon with par value if 100$ that pays interest annually assuming that the discount rate is 4.8%Use the following spot rates to answer the following questions. Maturity Spot rate (%) 1 year 4.93% 2-years 4.47% 3-years 4.12% 5-years 3.84% 10-years 3.68% Assume that Citibank is offering to sell a one-year Treasury bill next year with a rate of 5% (i.e., you can enter into a contract today to lock in a 5% return on a one-year security purchased/sold next year). Based on the above spot rates, does the Citibank offer generate any arbitrage opportunities? If so, compute the total $ profits that can be generated from this opportunity, specifying the steps you would take. Assume you will borrow/invest $1,000. O Yes: profit of $5.55/ $1000 borrowed. O No: $0 O No: Loss of $5.55/ $1000 borrowed.based on Citibank's offered rate. O Yes: $55.55/$1000 borrowed.Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 6.10% r2 = 6.00% r3 = 5.80% r4 = 5.50% What are the following forward rates? Hint: f1, k refers to a forward rate for the period beginning in one year and extending for k years. fk,1 refers to a forward rate beginning in k years and extending for 1 year. f1,1 : f1,2 : f1,3 : f2,1: f3,1 :
- Consider the following spot interest rates for maturities of one, two, three, and four years. r₁ = 4.3% 2 = 4.9% √3 = 5.6% r4 = 6.4% What are the following forward rates, where fkn refers to a forward rate beginning in k year(s) and extending for n year(s)? f2,1 = ? f3,1 = ? f2,2 = ?consider the following spot interest rates for maturities of one, two, three, and four years. r1=4.1%, r2=4.5% r3=5.2% r=6.0% what are teh following forward rates, where fk.1 refers toa forward rate beginning in the k years and extending for the 1 year?Refer to the following table: (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) 1 2 3 4 5 Zero- coupon YTM 4.00% 5.50% 5.50% 5.00% 4.50% What is the forward rate for year 2 the forward rate quoted today for an investment that begins in one year and matures in two years)? Note: Use at least four decimal places in all intermediate calculations. Question content area bottom Part 1 The forward rate for year 2 is enter your response here %. (Round to two decimal places.)
- helpThe par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price by general floating formula if interest rate is 12%, Use excel.Current 1-year spot rate is 3.5%. Annual volatility of interest rates is 10%. If rr₁, =4.5%, calculate the price of a 2-year bond with annual 5% coupon (paid annually). Assume face value of $100. Type your answer...
- Given a 10 year, $5000 bond with coupon rate 3% per year convertible semi - annually and nominal annual yield rate 4%, it is sold at time 2.5 years at a price such that the seller and buyer both have nominal annual yield of 4%. What is that price? Use Price plus accrued value formula.Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote.Answer with Excel functions and steps