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- he following information is about the spot rates on Treasury securities and BBB corporate bond: Spot 1 Year Spot 2 Year Spot 3 Year Treasury 3% 4.75% 5.5% BBB Corporate Debt 7.5% 9.15% 10.5% Question: What is the implied forward rates on one-year maturity BBB corporate debt to be delivered in year 3?The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Gilts Prices Close of Business 7th January 2018 Maturity Date Coupon Rate Coupon Payment Dates Yield to Maturity 07/04/2022 3.75% 7th April, 7th October 0.784735% 20/08/2027 1.70% 20th February, 20th August 1.394042% 07/06/2035 4.00% 7th June, 7th December 1.868424% The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. Work out the time periods to maturity, the periodic coupons and the periodic yields for each of the three bonds.The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Gilts Prices Close of Business 7th January 2018 Maturity Date Coupon Rate Coupon Payment Dates Yield to Maturity 07/04/2022 3.75% 7th April, 7th October 0.784735% 20/08/2027 1.70% 20th February, 20th August 1.394042% 07/06/2035 4.00% 7th June, 7th December 1.868424% The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. Calculate the accrued interest and dirty prices for each bond at the close of business on 7th January 2018.
- The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Gilts Prices Close of Business 7th January 2018 Maturity Date Coupon Rate Coupon Payment Dates Yield to Maturity 07/04/2022 3.75% 7th April, 7th October 0.784735% 20/08/2027 1.70% 20th February, 20th August 1.394042% 07/06/2035 4.00% 7th June, 7th December 1.868424% The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. Work out the time periods to maturity, the periodic coupons and the periodic yields for each of the three bonds. Use the information to calculate the clean price of each bond. Your mathematical workings should be clearly outlined in your written presentation.9- The Government of Oman issues Treasury Bills in the maturity periods of 28-Days, 91-Days, and 182-Days. To which market will you associate the treasury bills from the below options: a. Capital Market b. Money Market c. Foreign Currency Market d. Equity MarketIn the bond market you are given the following information. All amounts are in the US dollar. CF stands for cash flows and all bonds mature in Year 3. One can buy or sell only integer quantity of bonds. Based on the no-arbitrage principle, what is the price of Bond C today? In other words, what is X? Price Today CF Year 1 CF Year 2 CF Year 3 Bond A 95.00 6 6 106 Bond B 107.00 11 11 111 Bond C X 7 7 107
- This question is based on the following information on a bond: [ Bond Principal: R 5000000 Issue date: 30 June 2021 Maturity date: 15 September 2026 Coupon rate: 7.00% Coupon payment dates: 30 June and 31 December. The bond register closes one month before the coupon payment dates]. Suppose that the bond traded at a market price of R 103.475% for settlement on 10 December 2021 . The number of days from 30 June 2021 to 10 December 2021 is 163 and the number of days from 10 December 2021 to 31 December 2021 is 21 . What is the running yield on the bond? (note: if the answer is 5.55%, answer 5.55). Answer: AnswerFixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date. Which of the following types of bonds have the least default risk? Municipal bonds Corporate bonds Treasury bonds Based on the information given in the following statement, answer the questions that follow: In July 2009, Hungary successfully issued 1 billion euros in bonds. The transaction was managed by Citigroup. Who is the issuer of the bonds? Citigroup The Hungarian government Hungary Bank What type of bonds are these? Government bonds Corporate bonds Municipal bondswhat is the implied interest rate on a Government of Canada ($100 000) bond futures contract that settles at $117.55 ? your answer should look like this 4.07 that is not the right answer
- These are short-term securities issued by the U.S. government with maturities of 13 to 52 weeks: Group of answer choices Commercial paper Bankers' acceptances Treasury bills All of theseAssume that interest rate parity holds and that the 90-day risk-free securities yield is 5% in the United States and 5.3% in Germany. In the spot market, 1 euro equals $1.40 (1.4 dollars per euro). What is the 90-day forward rate? rh 1.25% 5.0% rf 1.33% 5.3% Euro 0.7143 $1.40 Spot Rate Forward Rate 1.943396 Is the 90-day forward rate trading at a premium or a discount relative to the spot rate?Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.00905, while in the 90-day forward market 1 Japanese yen = $0.00913. In Japan, 90-day risk-free securities yield 1%. What is the yield on 90-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places.