Question: help please 11. What is the one year interest rate one year from now if the current one-year interest rate is 1.31% and the two-year
help please
11. What is the one year interest rate one year from now if the current one-year interest rate is 1.31% and the two-year interest rate is 1.52% ? Assume the rates are effective annual rates. A. 1.52% B. 1.73% C. 2.05% D. 2.30% E. 2.46% 12. A bond has 6.4% coupon rate, semi-annual payment that is currently quoted at a price of $1,021 each. The bonds pay interest on January 1 and July 1 . What is the cash price of this bond if today's date is December 14 ? There are: 181 days Jan. 1 to July 1 184 days July 1 to Jan. 1 167 days July 1 to Dec. 14 14 days Dec. 14 to Jan. 1 A. $1,050.04 B. $1,105.75 C. $1,112.00 D. $1,118.25 E. $1,124.50
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
