Forward price of a bond

Assignment Help Finance Basics
Reference no: EM13543826

Forward Price of a bond
use formula F0,t =(S0-PV0)(1+rt)^T
Suppose that the 1-year spot rate is 5%, 1.5-year spot rate is 5.5%, and the 2-year spot rate is 6%. Determine the forward price for a bond with an annual coupon rate 8% and maturity 2 years. The maturity of the forward contract is 1.5 year

Reference no: EM13543826

Questions Cloud

Explain beverages tend to be acidic and cleaning agents : There is a common belief that beverages tend to be acidic and cleaning agents are often basic. Based on your findings in this lab, is this statement confirmed, plausible, or busted. Explain.
Andrea made the following gifts : Andrea made the following gifts
Explain how much energy is needed to convert ice : How much energy is needed to convert 64.0 grams of ice at 0.00 degrees C to water at 75.0 degrees C
What is the new net charge on the sphere : Please show work so I can see all the steps. A metallic sphere initially has a net charge of +4.0 nC. What is the new net charge on the sphere
Forward price of a bond : Forward Price of a bond
Estimate the kinetic energy stored in the flywheel : A car is designed to get its energy from a rotating flywheel (solid disk) with a radius of 1.00 m and a mass of 575 kg. estimate the kinetic energy stored in the flywheel
Explain the key intermediate in the glycolysis pathway : What is the key intermediate in the glycolysis pathway that diverges to ethanol in microorganisms. Why is the concentration of ethanol in wine typically 12% or less
What is the number of conduction electrons per aluminum atom : Aluminum has a density of 2.7 103 kg/m3 and a molar mass of 27 g/mol. The Hall coefficient of aluminum is R = -3.0 10-11 m3/C. What is the number of conduction electrons per aluminum atom?
What is the average dividend growth rate : 1.) A firm has paid dividends of $1.02, $1.10, $1.25, and $1.35 over the past 4 years, respectively. What is the average dividend growth rate?

Reviews

Write a Review

Finance Basics Questions & Answers

  Create an equally weighted portfolio of five computer

create an equally weighted portfolio of five computer software stocks. is such a portfolio a diversified portfolio?

  Two constant growth stocks are in equilibrium have the same

two constant growth stocks are in equilibrium have the same price and have the same required rate of return. which of

  Find the ebit indifference level

Taking this into consideration, which plan will generate the higher EPS? (Round income statement amounts to the nearest dollar except the EPS to the nearest cent.)

  Based on the inputs below prepare a capital budget analysis

based on the inputs below prepare a capital budget analysis for this base case using the net present value internal

  Capital projects in foreign countries-caribbean

Discuss a situation where a Capital Project in a foreign country with excellent business potential might not be to the advantage of the Parent. Discuss this from the standpoint of Cash Flow, Currency Convertibility, Repatriation, and other Country..

  We are considering the introduction of a new product

its been two months since you took a position as an assistant financial analyst at caledonia products. although your

  Calculate balance sheet-based accruals and cash flow-based

1. Using Wal-Mart (publicly traded company), calculate the balance sheet-based accruals and cash flow-based accruals ratios. 2. Analyze the ratios and other information,of Wal -Mart and write an assessment of financial reportin..

  What is the eps figure for 2008

Pizza A had earnings after taxes of $600,000 in the year 2008, and 300,000 shares outstanding. In year 2009, earnings after taxes increased to $750,000, and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 20..

  Description of present value of lump sum

What is the future value of lump sum at the end of year 5? What is the future value of mixed stream at the end of year 5? Based upon your findings in parts (a) and (b), which alternative should Gina take?

  What is ford motor co. average collection period for 2011

Using Yahoo!Finance, calculate the cash coverage ratio for Ford Motor Co. for their 2011 fiscal year. Assume 2011 Depreciation is $0. Yahoo current shows it as blank on the cash flow statement?

  Determine the npv

A project has the following cash flows: What is the NPV at a discount rate of zero percent?

  What is the break-even point

What is the break-even point and What is the margin of safety ratio and what are the fixed costs?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd