Use the following information to answer the next 3 questions.

 

Bond	I	II	III	IV
Type	Zero	Zero	Coupon	Zero
Face value	1,000	1,000	1,000	1,000
Coupon rate	0%	0%	4%	0%
Maturity	1	2	3	1
Price	960	920	990	?
Issue date	Today	Today	Today	At the end of 1st year
YTM
Duration		?	?

What is the duration of a 2-year zero-coupon bond?

2. What is the approximate duration of a 3-year 4% annual coupon bond priced at $990 today?

Group of answer choices

 2.74 

2.89 

2.94 

3. What is the price of a 1-year zero-coupon bond to be issued at the end of year 1?

Group of answer choices 

937.23 

952.13

 958.33 

961.37

 

 

Use the following information to answer the next two questions

Term (Days)	Issue	Maturity	Discount Rate	Investment Rate	Price per $100
28 days	5/16/2021	6/13/2021	?		99.59
58 days	5/16/2021	7/13/2021	4.65%	?
	5/16/2021		4.00%		99.00

 

 

Flag question: Question 29

 

 

Flag question: Question 30

Question 301 pts

What is the maturity of a T-bill trading at 99 discounted at 4%?

Group of answer choices

 89 days

 90 days

 91 days 

92 days

Transcribed Image Text:

Question 281 pts What is the discount rate. Idiscount of a 28-day T-bill priced at 99.59 today? www. Group of answer choices 5.27% 5.29% 5.34% 5.37% Question 281 pts What is the discount rate. Idiscount of a 28-day T-bill priced at 99.59 today? www. Group of answer choices 5.27% 5.29% 5.34% 5.37%

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Here are the answers to the questions 1 ... View the full answer