a pal $940, termediate calculations. Round your answers to two decimal places. Calculate: a. current yield. 7.45 % annually six years, coupon rate paid emiannually. b. yield to maturity, to the nearest basis point. 8.29 % annually c. horizon yield (or realized return) for an investor with a four-year holding period and a reinvestment rate of 5% over the period. At the end of four years, coupon bonds with two years remaining will sell to yield 7%. % annually

Bonds of Zello Corporation with a par value of $1,000 sell for $960, mature in five years, and have a 7% annual coupon rate paid semiannually.a. Calculate the:i. Current yield.ii. Yield to maturity to the nearest whole percent (i.e., 3%, 4%, 5%, etc.).iii. Realized compound yield for an investor with a 3-year holding period and a reinvestment rate of 6% over the period. At the end of three years the 7% coupon bonds with two years remaining will sell to yield 7%.b. Cite one major shortcoming for each of the following fixed-income yield measures:i. Current yield.ii. Yield to maturity.iii. Realized compound yield.

The duration (in years) of a $1000, 2-year, 5% coupon bond (interest paid annually) is _____ year(s) when market rates are 10%?

Current 1-year spot rate is 3.5%. Annual volatility of interest rates is 10%. If rr₁, =4.5%, calculate the price of a 2-year bond with annual 5% coupon (paid annually). Assume face value of $100. Type your answer...