Warning: call_user_func_array() expects parameter 1 to be a valid callback, function 'wpdocs_custom_excerpt_length' not found or invalid function name in /home/myonysqo/myonlinehomeworkhelper.com/wp-includes/class-wp-hook.php on line 287

Options

josh
September 23, 2015 0 Comment

home / study / questions and answers / business / finance / today’s zero-rate curve is summarised in the …

Question

Today’s zero-rate curve is summarised in the table below.

Time period (years) Zero rate%p.a
0.5 5.755
1.0 6.250
1.5 6.455
2.0 6.555
2.5 6.600
3.0 6.610

Calculate the price (per $100 par value), to three decimal places, of a three-year fixed-coupon bond paying a coupon rate of 9% pa if the bond pays coupons every half year. Assume that the bond is default-free and that a coupon has just been paid — that is, price the bond on an ex-interest basis.

Hint: find the bond price as the present value of its future cash flows, using the discount factors retrieved from the zero-rate curve.

Facebook
Twitter
Google+
  • 100% Original Essays Guaranteed
  • 8 Hrs Delivery Available
  • Original and creative work
  • Timely delivery guaranteed
  • 100% confidentiality guarantee
  • Variety of disciplines, topics, and deadlines
  • Discounts offered on every custom-ordered paper
  • Original papers written from scratch;
  • 100% confidential;
  • 100% plagiarism-free;
  • Fast turn-around time;
  • Direct communication with the writer;
  • Instant email delivery;
  • Free plagiarism reports;
  • 24/7 customer support team.
  • Choose your font
  • 12 point font size
  • Double-sized
  • Over 275 words/page
  • Text aligned left
  • One inch margin

We Accept

myonlinehomeworkhelper

you have a money back guarantee if you are not satisfied with our services