PLEASE SHOW WORKING OUT Calculate the yield spread of the floater when the maturity of the...

PLEASE SHOW WORKING OUT
Calculate the yield spread of the floater when the maturity of the bond is 3 years and its coupon rate is reference rate + 100 basis points where the initial reference rate is 9%.

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Please show all work Yield to maturity. (a) Find the yield to maturity on a 1-month...

Please show all work Yield to maturity. (a) Find the yield to maturity on a 1-month T-bill with $100,000 face value that sold for a price of $99,667.77. Answer: i = 0.04 (b) Consider a loan of $400,000 to be repaid with annual payments over 25 years. Find the fixed payments that would be required for the yield to maturity on the loan to be 6%. Answer: FP = $31,290.68. (c) Consider a loan of $200,000 to be repaid with...

COULD YOU PRETTY PLEASE show this in WORKING NOT EXCEL 5. A bond has maturity of...

COULD YOU PRETTY PLEASE show this in WORKING NOT EXCEL 5. A bond has maturity of 7 years and pays a 7% coupon rate (with coupon paid annually).The bond sells at par value. (1) Calculate the duration and convexity of the bond. 2 (2) Assuming its yield to maturity increases from 7% to 8% with maturity unchanged. Calculate the predicted price using modified duration rule, and the percentage error of this rule. (3) Assuming its yield to maturity increases from...

Define yield to maturity, coupon, time to maturity yield to call please answer in essay form

Calculate an approximation of the yield to maturity (using thecurrent yield) of a20-year coupon...

Calculate an approximation of the yield to maturity (using the current yield) of a20-year coupon bond with face value of 10,000$ and coupon rate of 5% per year;assume that its price today is 3,000$.

A zero-coupon bond with 4 years to maturity and the yield to maturity of 8%. When...

A zero-coupon bond with 4 years to maturity and the yield to maturity of 8%. When the yield increases, the duration of this bond decreases. a. True b. False 2) A bond issuer often repurchases Callable bonds for a discount bond. a. True b. False Credit Default Swap (CDS) is an insurance policy on default risk of corporate bond or loan. a. True b. False 4) The delivery of the underlying asset is seldom made in forward contracts while the...

1. Calculate the current yield (show work)? 2. What is the "dirty price" when adding accrued...

1. Calculate the current yield (show work)? 2. What is the "dirty price" when adding accrued interest to the "clean price"? 3. Assuming 182 days in six month period, 365 days per year estimate YTM using iterative method? 4. Draw Cash flow Diagram Please show work with this homework Price 170 Coupon% 4 Maturity Date 20 Jan 2019 Yield to Maturity% Current Yield % Fitch Ratings: AAA Coupon Payment Frequency Semi-Annual First Coupon Date 20 Jan 2009 Offering Info Quanitiy...

please show working out. Thank you a college has put in place a 4 week course...

please show working out. Thank you a college has put in place a 4 week course of lunchtime exercise breaks for its staff to see if its employees’ job satisfaction can be improved. To measure the effectiveness of this program, 10 randomly selected staff in the program were surveyed about their feelings at work, once at the start of the program and again after the course. Higher scores indicate higher satisfaction. The job satisfaction index results for this group were:...

Please show your working and formula (If possible) -------------------------- Suppose you take out an $840,000, 20-year...

Please show your working and formula (If possible) -------------------------- Suppose you take out an $840,000, 20-year mortgage loan to buy a residential apartment. The interest rate on the mortgage is 4.65% per annum, and payments are required to be made annually at the end of each year. Question: Construct a mortgage amortisation table showing loan balance at the beginning of each period, annual repayment amount, interest payment, the amortisation of the loan and the loan balance for each year.

Question 2 - Calculate the yield to maturity of the following bond with a par value...

Question 2 - Calculate the yield to maturity of the following bond with a par value of $1,000 that pays a 3.9% coupon semiannually. The bond was settled on Jan 1, 2010 and matures on Jan 1, 2032. It currently trades at a price of $972.84 (5 points) Coupon Bond YTM settlement date: 01/01/2020; maturity date: 01/01/2032; coupon rate: 3.9%; coupons per year: 2; face value (% of par): 100; Bond price (% of par): $972.84. What is the YTM?...

Calculate the yield to maturity and the duration of the following portfolio of bonds. one year...

Calculate the yield to maturity and the duration of the following portfolio of bonds. one year T-bill yielding 4.65% Three-year AAA-rated bond paying semiannual coupons at 5% with a yield of 5.25% Two-year BBB-rated bonds paying semiannual coupons at 5.5% with a yield of 6.75%

Subjects