A bond makes semi-annual interest payments at a coupon rate of 4.7% per year on 15 March
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2. A bank bill with 32 days to maturity is quoted at a discount rate of 6.86%. What is the value of the security (per $100 of face value) on an add-on basis? (Assume a 365-day year.)
3. A bond has an Annual Percentage Rate of 2.14%. If it's periodicity is 2, what is it's Equivalent Annual Rate?
5. The one-year spot rate is 3.8%, the two-year spot rate is 4.8% and the three-year spot rate is 5.8%. What is the price (per $100 of face value) of a 3-year bond paying a 4.8% annual coupon?
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
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