A promissory note has 103 days until it matures, has a face value of $600, and is currently trading at a price of $594.96. What is the current yield of the security? Select one: a. 2% b. 5% c. 4% d. 3%
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- Assume that the real risk free rate is 2% and the average expected inflation rate is 3% for each future year. The default risk premium and the liquidity premium for bond x are each 1% and the applicable Maturity Risk premium is 2% what is bond x’s interest rate. Round to 2 decimal places1.Consider a security with a face value of $100,000 to be repaid at maturity. The maturity of the security is 1.5 years. The coupon rate is 7% p.a. and coupon payments are made semi-annually. The current market rate is 12% p.a. What is the security’s duration ? 2.Consider a bond with a face value of $100 and an annual coupon of 12%. Current market rates are 15% p.a. What is the change in price of the bond if current market rates increase by 1% and the remaining time to maturity is one year? Use duration model and round to two decimals.Use duration model and round your final answer to 2 decimal places.E.g. if the final answer is -5.8312%, type -5.83 in the answer box, if the final answer is 5.8312%, type 5.83 in theanswer box.(Do not type the percentage sign).Type -0.87 in the answer box, not -0.0087 3.If a bank wants to lengthen its asset duration, what type of risk is the bank concerned about?A.The risk of rising interest rates. B.Foreign exchange rate risk. C.The risk of falling…A three-month treasury bill sold for a price of $99.311998 per $100 face value. What is the yield to maturity of this bond expressed as an EAR?
- A Treasury note has 2.5 years left to maturity, a yield to maturity of 3.6 percent, and a coupon rate of 4.40 percent. What is the price of the bond? O $1,015.41 O $1,015.53 O $1,016.56 O $1,018.96Using the following information, determine the default risk premium on the 10 year AAA corporate bond: Rate % inflation 0.82 T-bill 5.00 10y T-Bond 6.00 10y AAA Corporate 6.28 10y AA Corporate 8.13 note: your answer should be to 2 decimal places. So, if your answer is 3.253%, for example, then enter 3.25 without the percent sign.You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Rate ?? 5.324 6.173 Maturity Mo/Yr May 29 a. Asked price b. Bid price May 34 May 44 Bid Asked 103.5488 103.5366 104.4978 104.6435 ?? Chg +.3041 +.4317 ?? +.5431 Ask Yld 6.039 ?? 4.071 a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the bid-ask spread for this bond is .0538, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- U1This first table describes prevailing market interest rates. Market Data Yield 0.05 Required: Using the yield above and the information contained in the table below, please calculate the price and duration of the bond as well as all necessary steps. (Use cells A5 to B5 from the given information to complete this question.) Time Until Payment Payment Discounted Payment Weight Time × Weight 1.00 $30.00 2.00 $30.00 3.00 $30.00 4.00 $1,030.00 Price: DurationA bond with a 9-year duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.50%, you would predict that the new price of the bond will be “approximately” _________. Group of answer choices A. $1,125 B. $1,094 C. $1,035 D. $1,036
