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Finance
A STRIPS traded on April 30, 2020, matures in 18 years on May 1, 2038. Assuming a yield to maturity of 6 percent, what is the STRIPS price?
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- A STRIPS traded on May 1, 2023 matures in 12 years on May 1, 2035. The quoted STRIPS price is 81.40. What is its yield to maturity? Note: Use Excel to answer this question. Enter your answer as a percent rounded to 2 decimal places. Yield to maturity %On January 2021, you buy a 10-year coupon bond with coupon payments of $10,000 per year and a final value of $100,000. The yield to maturity of this bond is 10 percent. On January 2022, you collect your first coupon and sell the bond in the bond market. On January 2022 the yield to maturity of this bond decreases to 8 percent. Calculate the following: a. holding period return rate b. current yield rate c. capital gain rate Please include formulas and calculationsFinance Consider a zero-coupon bond that will pay the face value of $1,000 in September 2023. In September 2021, we enter a long position in a forward contract on the zero-coupon bond. The forward will expire one year from now, and the forward price is $980. Suppose that a year later, in September 2022, the term structure turns out to be as follows: Maturity (years) Spot rate (% per annum) (continuous compounding) 1 5% 2 6% What is the payoff for the long position in the forward?
- You are given the following information about an investment account for the year 2021: Value Immédiately Before Deposit 1060 1125 1200 1420 Date Deposit January 1 March 1 August 1 December 31 100 If the annual time-weighted yield rate for this account is 10%, compute the dollar- weighted yield rate, rounded to the nearest tenth of a percent.6. Find the maturity value if Php 70,000 is invested from August 18, 2019 to November 18, 2020mat a simple interest of 14 ½ %?Suppose we wish to borrow $10 million for 91 days beginning next June, and that the quoted Eurodollar futures price is 93.23. What 3-month LIBOR rate is implied by this price? How much will be needed to repay the loan? Show work and discuss result.
- The graph (attached) depicts yield curves for 5 November 2021, 5 November, 2022, and 5 November, 2019. The yield rates are given for each of those in the graph. a) As of today, what is the one-year interest rate expected by financial market participants for November 5, 2023? Does it appear that financial market participants are currently expecting changes in monetary policy within the next two years?Suppose you work as a broker in an investment company, and there is an expectation that the market interest rate will be 0.029. based on this expectation you are required to calculate the market price for the following CD;Issue date: 1 January 2021 Maturity date:10 May 2021. The face value OMR 10000. Interest on CD: 5 percent. Select one: a. 15942.02 b. 15574.10 c. 15677.97 d. All the given choices are not correct e. 15572.50Suppose that at the end of 2021 the one-year interest rate was 9.75% and the two-year interest rate was 10.5%. How can this yield curve be interpreted? Calculate the expected short-term interest rate at the end of 2022.
- You wish to purchase a 10-year bond that was issued in 2013, par value $1,000 and has a 6% coupon rate, payable semi-annually. The bond matures in 2023 and you require a 10% nominal yield to maturity. What’s the term to maturity of the bond iin 2020? At what price should you be willing to pay for the bond in 2020? What’s the bond’s current yield?Suppose that you purchase the t bill maturing on November 18 2023 for $9993.793. The T bill matures 133 days aftef the settlment date july 9 2023 and has a face value of $10000. What is the T bill asked discount yield?Finance Assuming we have the following immediate interest rates in the market: 1M - 2.5%, 2M - 2.8%, 3M - 3%, calculate the FRA 1v2 rate. Assume that each month has 30 days and a year has 360 days. If the investor has purchased this contract at the FRA rate calculated above and the interest rate in the market at the time the contract is settled is 3.2%, then in which direction the settlement flows (between the buyer and seller of the contract)? (please use the formula to solve it, thank you)