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1 a coupon bond costs 100 pays 10 interest each year and in 10 years pays back 100 principal ceasing to exist what is
at todays prevailing 1-year and 2-year treasury ratesa what is the 1-year forward interest rate on treasuriesb how
advanced let me lead you along in working out how you can strip a treasury coupon bond assume the 12-month treasury
1 a bond pays 150 for every 100 invested what is its continuously compounded interest rate2 explain the difference
a 2-year bond costs 25000 today it pays 1000 interest at the end of the first year and 1000 interest at the end of the
a 5-year zero-coupon bond offers an interest rate of 8 per annuma how does a 1-basis-point increase in the prevailing
1 if the real rate of return has been about 1 per month for long-term bonds what would be the value of an investment
you must value a perpetual lease it will cost 100000 each year in real terms-that is its proceeds will not grow in real
inflation is 2 per year the interest rate is 8 per year your perpetuity project has cash flows that grow at 1 faster
1 if the annualized rate of return on insured tax-exempt municipal bonds will be 3 per annum and the inflation rate
1 if the nominal interest rate is 7 per year and the inflation rate is 2 per year what is the exact real rate of
1 using information from a current newspaper or a financial website find out the current inflation rate2 using
a project has cash flows of 100 now at time 0 and -100 100 and -100 at the end of consecutive years the interest rate
the annual interest rate from year t to year t 1 is rtt1 5 03 t eg the rate of return from year 5 to year 6 is 5
1 if the annualized 5-year rate of return is 10 what is the total 5-year holding rate of return2 if the annualized
stock a alternates between 20 and -10 with equal probability stock b earns 45 per annuma what is the average rate of
1 are you better off if a project first returns -10 followed by 30 or if it first returns 30 followed by -102 compare
a 10-year and a 1-year zero-bond both offer an interest rate of 8 per annuma how does an increase of 1 basis point in
1 a coupon bond costs 100 then pays 10 interest each year for 10 years and pays back its 100 principal in 10 years what
1 under what circumstances is an irr a rate of return under what circumstances is a rate of return an irr2 give an
1 your project has cash flows of -1000 in year 0 3550 in year 1 -4185 in year 2 and -1638 in year 3 what is its irr2 a
1 a project has cash flows of -100 55 and 6050 in consecutive years if the hurdle rate is 10 should you accept the
what are the profitability indexes and the npvs of the following two projectsproject a that requires an investment of 5
1 if the first-year interest rate is 2 and the second year interest is 3 what is the 2-year total interest rate2
1 a project lost one-third of its value the first year then gained fifty percent of its value then lost two-thirds of