For the 10 Year Government Bonds Yield Curve for Turkey, what is the market predicting about the movement of interest rates that go further into the longer future? Explain in detail using the Expectations Theory
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For the 10 Year Government Bonds Yield Curve for Turkey, what is the market predicting about the movement of interest rates that go further into the longer future? Explain in detail using the Expectations Theory.
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- Market Cap = 5.65B Long term debt = 748,000 Beta for 5 years monthly =0.27 Avg. volume 5,869,739 Income before tax 417,000 Income tax expense 129,000 calculate the weighted average cost of capital (WACC) of Sainsbury.Discuss the Beta of Sainsbury as measure of systematic risk. Discuss the 10-year Bond rate of UK government as proxy of risk-free rate. What is the weighted average cost of capital (WACC) of Sainsbury? (Hint:according to IG market, the average of recent yearly returns of FTSE100 as proxy of UK market is 7.5%; UK corporate tax rate is19%).Calculate the modified duration? Issue Price Yield to maturity US Treasury bond 15 4/5% maturing 3 July, 2030 1000 15.8% No of years = 5 years ( July 3, 2025) One US Treasury bonds futures contract is a claim on $ 1,000,000 par value long-term US Treasury bondsCompute how much interest a company would pay in 2023 on a 10 year, $100,000+u dollar loan (which it takes out today) that has an interest rate contractually set to equal 2.50% above the 1 year treasury bond yield on June 15 each year if that specified T-bond turns out to be 9.23% on June 15, 2023? U=12
- D3) You decide that you will issue floating rate bonds on 15 May 2021. The bonds have a face value of $1,000 anually semi-annual coupon payments at a rate based on BBSW plus a margin of 1.6%. The day fraction count to be Actual/365. If the BBSW is 3.1% on 15 May 2021 and 4.4% on 15 November 2021, how much interest will be payable on 15 November 2021?A3) Finance A three-month forward contract exists on a zero-coupon corporate bond with a current price per £100 nominal of £42.60. The yield available on three-month government securities is 6% pa effective. Calculate the forward price.A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital: CET1 = 7% Tier 1= 7.50% Tier 1+2= 9% Under Basel 2, what is the maximum, it can pay out in dividends? a $0.00 b $400,000.00 c $800,000.00 d $1,200,000.00
- 10 Year Government Bonds Yield Curve for Turkey as of November 15, 2020 is given. a) For the 10 Year Government Bonds Yield Curve for Turkey, what is the market predicting about the movement of future short-term interest rates? Explain in detail using the Expectations Theory.1 Consider BOND AAA Coupon rate: 9,4% per year Yield to maturity: 10,6% per year Settlement date: 16 July 2022 Maturity date: 9 October 2048 The all-in price is? 1. R89,45121%. 2. R91,91965%. 3. R87,33105%. 4. R82,63215%.A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital: CET1 = 7% Tier 1= 7.50% Tier 1+2= 9% Under Basel 2, what is the maximum, it can pay out in dividends? $0.00 $400,000.00 $800,000.00 $1,200,000.00
- Q1 (a) Explain FOUR (4) reasons that influence the changes which make debt securityyields vary. (b) If a government bond is expected to mature in two years and has a current priceof RM950, calculate the bond's interest rate/yield if it has a par value of RM1,000and a promised coupon payment rate of 10%.(c) From part (b) above, illustrate how the bond price/value if the interest rate/yieldmoves up (increase).Calculate the modified duration? Issue Price Yield to maturity US Treasury bond 15 4/5% maturing 3 July, 2030 1000 15.8% US Treasury long bond futures contract (contract expiration in 8 months) 65 15.9% Busco bond 16 11/20% maturing 3 July, 2025 (sinking fund debenture, rated AAA) 95 17.55% One US Treasury bonds futures contract is a claim on $ 1,000,000 par value long-term US Treasury bonds.A 6% German corporate bond is priced for settlement on 18 June 2015. The bond makes semiannual coupon payments on 19 March and 19 September of each year and matures on 19 September 2026. The corporate bond uses the 30/360 day-count convention for accrued interest. Calculate the full price, the accrued interest, and the clean price per EUR100 of par value for three stated annual yields-to-maturity: (A) 6.20%