Tiffany Zheng purchased a $1 000 par value 0% cou
Tiffany Zheng purchased a $1,000 par value, 0% coupon bond with 16 years to maturity one year ago. The YTM (semiannually compounding) was 6.0%. Now one year later, with market rates remaining the same, Zheng purchases an annuity with a semiannual payment of $30 for 15 years. Which of the following gives the closest combined value of the two investments based on the 6% semiannual yield?
A. $1,000.
B. $27.83.
C. $29.46.
参考解答
481***102
2024-11-17 19:19:27
Ans:A;
Zheng’s two investments combine to form. a 15-year, $1,000 face value, 6.0% semiannual coupon bond.
This combined investment would sell at par because the YTM (6%) equals the coupon rate (6%).
Thus the combined value is $1,000.
相似问题
Using the U.S. Treasury forward provided in the fo
Using the U S Treasury forward provided in the following table, the value of a 2 year, 100 par value Treasury bond with a 4% coupon rate is closes to:A $104 20B $100C $98 74
A 10% annual coupon bond with 3 years to maturity
A 10% annual coupon bond with 3 years to maturity is currently trading at $1,010 The bond is callable in one year at a
Consider a $100 par value bond. It has a 6% coupon
Consider a $100 par value bond It has a 6% coupon paid annually and 10 years to maturity The bond is valued at $102 08
The yield of a 3-year bond issue quoted on an annu
The yield of a 3-year bond issue quoted on an annual-pay basis is 7 84% The yield-to-maturity on a bond-equivalent basis is closest to:A 3 85%B 7 69%C 7 84%
Consider the three bonds in the following table. W
Consider the three bonds in the following table Which of the three bonds is most likely to have the greatest reinvestment risk?A Bond AB Bond BC Bond C
