Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 8%. (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Volatility" to 2 decimal places.) Duration Volatility A 115 95 85 ABC Period 1 Period 2 Period 3 115 190 95 270 85 260 C years years years

Q: Classify the following event as mostly systematic, mostly unsystematic: "Short-term interest rates…

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A: Periodic forward rate is the interest rate for a particular time period applicable on a future date.

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A: MaturityPrice of Bond1 $        910.902 $        907.973 $        828.124 $        768.49

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A: For 1%: Formulas:

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Q: Consider the following information for a period of years: Long-term government bonds Long-term…

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Q: am. 116.

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Q: None

A: calculations a. 1-year interest rate= (100/98.352)1-1= 1.0167561412-1= 0.0167561412= 1.68% b. 2-year…

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.