Question: please ans all 3 thanks 22. $1,000 par value zero coupon bonds, ignore liquidity premiums Based on the table above, the expected 4-year interest rate
22. $1,000 par value zero coupon bonds, ignore liquidity premiums Based on the table above, the expected 4-year interest rate 1 year from now should be A. 3.95% B. 4.15% C. 4.50% D. 5.12% 23. You buy a bond with a $1,000 par today for a price of $1,055. The bond has 6 years to maturity and makes annual coupon payments of $45 per year. You hold the bond to maturity but you do not reinvest any of your coupons. What was your effective rate of return over the holding period? A. 4.50% B. 3.47% C. 3.14% D. 2.76% 24. A coupon bond that pays interest of 5% annually has a par value of $1,000, matures in 3 years, and is selling today at $974. What is the effective rate of return you will earn on this bond if you are able to reinvest your coupon payments at the following rates: Year 1:3.9%; Year 2:4.2%. A. 3.00% B. 3.08% C. 4.29% D. 5.88% E. 6.51%
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