A3-year bond offers a 10% coupon rate with interest paid annually. Assuming the following sequence of spot rates, the price of the bond is closest to: Time Spot Rates 1yesr 8.0% 2yesr 9.0% 3yesr 9.5%
A: 96.98.
B: 101.46.
C: 102.95.
A: 96.98.
B: 101.46.
C: 102.95.
举一反三
- A bond with two years remaining until maturity offers a 3% coupon rate with interest paid annually. At a market discount rate of 4%, the price of this bond per 100 of par value is closest to: A: 95.34. B: 98.00. C: 98.11.
- a bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of par value is closest to
- Is an option-free bond’s price sensitivity positively correlated with the: Bond’s coupon rate Level of market interest rates（） A: NO NO B: NO YES C: YES NO
- A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays interest annually and matures in three years. If the required rate of return on the bond is 5%, the price of the bond per 100 of par value is closest to
- Consider the following two bonds that pay interest annually: Bond Coupon Rate Time-to-Maturity A 5% 2 years B 3% 2 years At a market discount rate of 4%, the price difference between BondBper 100 of par value is closest to: A: 3.70. B: 3.77. C: 4.00.