A Dutch bank holds a large position in a zero-coupon Federal Republic of Germany government bond maturing
Question:
A Dutch bank holds a large position in a zero-coupon Federal Republic of Germany government bond maturing on 11 April 2025. The yield-to-maturity is −0.72% for settlement on 11 May 2020, stated as an effective annual rate on an Actual/Actual basis. That settlement date is 30 days into the 365-day year using this day count method.
Calculate the full price of the bond per 100 of par value.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
There are five years from the beginning of the ...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Compare the estimated percentage price change with the actual change, assuming the yield-to-maturity jumps 100 bps to 0.28% on that settlement date. A Dutch bank holds a large position in a...
-
A Dutch bank holds a large position in a zero-coupon Federal Republic of Germany government bond maturing on 11 April 2025. The yield-to-maturity is 0.72% for settlement on 11 May 2020, stated as an...
-
Calculate the estimated convexity-adjusted percentage price change resulting from a 100 bp increase in the yield-to-maturity A Dutch bank holds a large position in a zero-coupon Federal Republic of...
-
Featherstone Inc. reported the following data: Net income ................................... $296,000 Depreciation expense ................... 113,100 Gain on disposal of equipment ...... 58,500...
-
Discuss the advantages of labor pools in a project - oriented company. Are there any potential disadvantages with the use of pools?
-
Professional Simulation In this simulation, you are asked to address questions related to investments. Provide responses to all parts. KWW Professional Simulation Investments Time Remaining 3 hours...
-
Define the following: a. Asset b. Liability c. Net asset
-
Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected events and transactions occurred during March. Mar. 1 Invested $20,000 cash in the business. 3 Purchased Rainbow Golf...
-
A swimmer wants to cross a river, from point A to point B, as shown in the figure. The distance di (from A to C) is 200 m, the distance d (from C to B) is 150 m, and the speed vr of the current in...
-
An investor plans to retire in 10 years. As part of the retirement portfolio, the investor buys a newly issued, 12-year, 8% annual coupon payment bond. The bond is purchased at par value, so its...
-
A life insurance company holds a USD10 million (par value) position in a 5.95% Dominican Republic bond that matures on 25 January 2027. The bond is priced (flat) at 101.996 per 100 of par value to...
-
Complete the following. (a) Write the equation as ax 2 + bx + c = 0 with a > 0. (b) Calculate the discriminant b 2 - 4ac and determine the number of real solutions. (c) Solve the equation. 3x = 1- x
-
O O O O How does Gregor feel about his family when he dies at the end of Kafka's novella? He feels greater anger after finding out that her father had enough money saved that Gregor didn't have to...
-
What is a "public utility internet" and how would it differ from platform capitalism?
-
Which of the following terms/phrases refers to the fear of being watched and influenced by those whom we consider Other? O The Absurd O The Gaze O The Burden of Freedom O The Burden of Self
-
What is the importance of The Justinian Code in today's society? How does the Justinian Empire's Golden Age contribute to modern civilization? What is the noteworthy contribution of the Byzantine...
-
What role does religion play in being happy? Provide detail and examples. Is religion necessary for happiness? Why or why not?
-
Refer to the original data given in Exercise III5 for Fiber Technology, Inc. The lead time required to receive an order of XL-20 is one month. Required: 1. Assuming stable usage of XL-20 each month,...
-
Describe a group you belong or have belonged discuss the stages of group development and suggest how to improve the group effectiveness by using the group development model.
-
Williamson, Inc., has a debtequity ratio of 1.7. The firms weighted average cost of capital is 8.4 percent, and its pretax cost of debt is 5.3 percent. The corporate tax rate is 35 percent. a. What...
-
Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The...
-
A In its first year of business, Baumgartner Company purchased land, a building, and equipment on March 5, 2013, for $650,000 in total. The land was valued at $275,000, the building at $343,750, and...
-
Suppose M&T Bank has the following assets and liabilities to manage (shown in Table 2). The current interest rate on the rate-sensitive asset and liability is 1% per annum. Assume that 15% of the...
-
Vincent owns a printer shop, Heartbreaker Ltd . For the month of November 2 0 2 3 , the transactions were as follows: November 2 0 2 3 1 Commenced business with RM 3 , 0 0 0 in the bank. 2 Purchased...
-
Consider the following historical performance data for two different portfolios, the Standard and Poor's 500, and the 90-day T-bill. Investment Vehicle Fund 1 Fund 2 S&P 500 90-day T-bill Average...
Study smarter with the SolutionInn App