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9-1 A $1,000. face value, 120-day bond is quoted at a bank discount yield of 3.38% What is the current bond yield?

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9-1 A $1,000. face value, 120-day bond is quoted at a bank discount yield of 3.38% What is the current bond yield?;9-2 A Treasury bill has 21 days to maturity and a bank discount yield of 1.89%. What is the bond equivalent yield?;9-3 A Treasury bill has a face value of $250,000, an asked yield of 2.12%, and matures in 28 days. What is the price of this bill?;9-4 Your credit card has an annual percentage rate of 18.9 and compounds interest daily. What is the effective annual rate?;9-5 What is the current value of a $5,000. face value STRIPS with 6 years to maturity and a yield to maturity of 8.1%?;9-6 A $5,000. face value STRIPS matures in 7 years and is currently quoted at a price of 64.238 What is the yield-to-maturity?;9-7 A bond has a nominal rate of return of 5.87% and the inflation rate is 4.13%. What is the approximate real rate?;9-8 The following premiums apply to a 7-month bond: interest rate risk premium=0.35%, liquidity premium=.40 %, default premium= 1.10%, inflation premium= 2.45%, real rate= 3.00% What is the expected nominal interest rate on a 7-month risky security given these values?

 

Paper#31897 | Written in 18-Jul-2015

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