bond valuation An investor has two nonds in her portfolio, bond C and bond Z. each bond maturres in 4 years has a face value of 1000, and has a yield to maturity of 9.6% bond C pays a 10% annual coupon, while bond Z is a zeo coupon bond . b- assuming that the yield to maturity of each bond remains at9.6

Suppose that a 2-year zero-coupon bond with face value $1,000 currently sells at $840, while a 1-year zero-coupon bond with face value $1,000 currently sells at $920. You are considering the purchase of a 2-year coupon bond that pays coupon annually. The face value of this coupon bond is $1,000 and coupon rate is 12% per year.   Required: a. What is the yield to maturity of the 2-year zero-coupon bonds? b. What is the current price of the 2-year coupon bond? c. What is the forward rate of the second year? d. If the expectation hypothesis is accepted, what are (1) the expected price of the coupon bond at the end of the first year and (2) the expected holding period return on the coupon bond over the first year? e. Will the expected rate of return be higher or lower if you accept the liquidity preference hypothesis?

5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16%

The real risk free rate is 3.3%. Inflation is expected to be 3.05% this year, 4.05% next year, and 2.1% thereafter. The maturity risk premium is estimated to be 0.05 x (t-1), wheret - number of years to maturity. What is the yield on a 7-year Treasury note?