A BBB-rated corporate bond has a yield to maturity of 10.1%. A U.S. treasury security has a yield to maturity of 8.3%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 9.0% and have five years to maturity.
a. What is the price (expressed as a percentage of the face value) of the treasury bond?
b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond?
c. What is the credit spread on the BBB bonds?
In: Finance
A BBB-rated corporate bond has a yield to maturity of 12.7 %. A U.S. treasury security has a yield to maturity of 10.7 %. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 11.5 % and have five years to maturity.
a. What is the price (expressed as a percentage of the face value) of the treasury bond?
b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond?
c. What is the credit spread on the BBB bonds?
In: Finance
A BBB-rated corporate bond has a yield to maturity of 9.0 %. A U.S. Treasury security has a yield to maturity of 7.0 %. These yields are quoted as APRs with semiannual compounding. Both bonds pay semiannual coupons at an annual rate of 7.9 % and have five years to maturity.
a. What is the price (expressed as a percentage of the face value) of the Treasury bond?
b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond?
c. What is the credit spread on the BBB bonds?
In: Finance
A genetic experiment with peas resulted in one sample of offspring that consisted of 420 green peas and 159 yellow peas. a. Construct a 90% confidence interval to estimate of the percentage of yellow peas. b. It was expected that 25% of the offspring peas would be yellow. Given that the percentage of offspring yellow peas is not 25%, do the results contradict expectations? a. Construct a 90% confidence interval. Express the percentages in decimal form. nothingless thanpless than nothing (Round to three decimal places as needed.)
In: Statistics and Probability
A BBB corporate bond portfolio has maturity of Eight years and semiannual. yield to maturity is Five percentage, coupon rate is Eight percentage. The portfolio includes one million bonds.
1.What's the face value of the portfolio.
2.What's the market value of the portfolio.
3.What's the modified and effective duration of the portfolio.
4.If the T-bond futures contract is $98 and whose duration is Four. In order to decrease the portfolio duration to 0, how many contracts needed? Long or short?
In: Finance
The Acme Company manufactures widgets. The distribution of widget weights is bell-shaped. The widget weights have a mean of 50 ounces and a standard deviation of 5 ounces. Use the Standard Deviation Rule, also known as the Empirical Rule. Suggestion: sketch the distribution in order to answer these questions. a) 95% of the widget weights lie between and b) What percentage of the widget weights lie between 45 and 60 ounces? % c) What percentage of the widget weights lie below 65 ? %
In: Statistics and Probability
Consider the following representation of a hockey shootout. The shooter can shoot on their forehand, or deke to their backhand, and the goalie can anticipate either move. The number in each cell in the table below represents the percentage chance that the shooter scores for each pair of pure strategies.
| Anticipate Forehand | Anticipate Backhand | |
| Shoot Forehand | 20 | 40 |
| Deke Backhand | 40 | 10 |
In the mixed strategy Nash equilibrium of this game, what is the percentage chance that the player scores? (ie. An 80% chance should be recorded as 80)
In: Economics
True or False: An advantage of using behavioral data as the basis of segmentation, as opposed to psychographic data, is that behavioral data generally has higher individual-level accessibility.
True
False
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Which of the following is NOT an appropriate way to decide the number of segments in a cluster analysis?
Choose the number of segments with the highest between_SS / total_SS percentage
Choose the number of segments at which the increase in the between_SS / total_SS percentage from adding one more segment is small
Choose the maximal number of segments such that the resulting segments are large and interpretable
In: Economics
A survey found that women's heights are normally distributed with mean
62.5 in62.5 in.
and standard deviation
2.5 in2.5 in.
The survey also found that men's heights are normally distributed with mean
68.4 in68.4 in.
and standard deviation
3.8 in3.8 in.
Consider an executive jet that seats six with a doorway height of
56.3 in56.3 in.
Complete parts (a) through (c) below.
a. What percentage of adult men can fit through the door without bending?
The percentage of men who can fit without bending is
nothing%.
In: Statistics and Probability
A BBB-rated corporate bond has a yield to maturity of 4.9%. A U.S. treasury security has a yield to maturity of 3.5%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 4.1% and have five years to maturity.
a. What is the price (expressed as a percentage of the face value) of the treasury bond?
b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond?
c. What is the credit spread on the BBB bonds?
In: Finance