The current price of a 1000 face value 1 year zero coupon bond is 925. What is the implied interest rate? (Your answer shojkd be in Derventage terms two decimal places, for example, 1.23%)

Suppose the interest rate on a 1-year T-bond is 2.60% and that on a 2-year T-bond is 4.50%. Assume that the pure expectations theory is NOT valid, and the MRP is zero for a 1-year T-bond but 0.30% for a 2-year bond. What is the equilibrium market forecast for   1-year rates 1 year from now?   a.   4.7333% b.   5.1110% c.   5.2676% d.   5.5463% e.   5.8250%.                   Only typing answer Please explain step by step

2. Consider a 15-year semiannual floating rate bond with coupon rate determined with the following formula: Coupon rate = reference rate + 65bps What’s the discount margin of the bond if the bond price is 99.5730 and current reference rate is 9%?

If the YTM on a bond is 17.5 %, what will be the periodic rate assuming the bond is paying coupons semi-annually? (Write this number as a decimal and not as a percentage, e.g. 0.11 not 11%. Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).

Suppose a 10-year, $1000 bond with a coupon rate of 8.4% and semiannual coupons is trading for $1035.64. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price?

Assume that the real risk-free rate is 1% and that the maturity risk premium is zero. If a 1-year Treasury bond yield is 6% and a 2-year Treasury bond yields 7%, what is the 1-year interest rate that is expected for Year 2? Calculate this yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places.    What inflation rate is expected during Year 2? Do not round intermediate calculations. Round your answer to two decimal places.

12.  Suppose that you buy a 1-year maturity bond for $1,000 which is a real return bond with a coupon rate of 4%. What will the cash flow provided by the bond be for each of the four inflation rates? What will be the real and nominal rates of return on the bond in each scenario? (Do not round intermediate calculations. Round your answers to 2 decimal places.)  a. The inflation rate is 2%.  b. The inflation rate is 4%.

The one-year spot rate z1 = 5% and the forward price for a one-year zero-coupon bond beginning in one year is 0.9346. Find the spot price (zero price) of a two-year zero-coupon bond.

Qw.143.

Suppose we observe the following rates: 1R₁ = 0.95%, 1R2 = 1.45%, and E(2r1) = 0.927%. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2, L2 ? Note: Do not round intermediate calculations. Round your percentage answer to 3 decimal places (i.e., 0.12345 should be entered as 12.345). Liquidity premium %