1. Kolama Company s’ bonds currently sell for $945. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their current yield?
2. An investor enters into a short forward contract on 181 thousand GBP for 1.51 USD each. How much does the investor profit if the exchange rate at the end of the contract is 1.4 USD/GBP? Note: GBP is British pounds, USD is US dollar.
3. A bank gives you a bid-ask quote on the BGN (Bulgarian lev), of 0.71 - 0.82 USD/BGN. What is the percentage bid-ask spread? Enter anwer in percents, accurate to two decimal places.