Using the following spot rates for the following 4 strips of a 2year semi-annual 3% coupon T-Note, what would you expect the YTM of this bond to be? Term Spot Rate 6month 19% 12 month 85 18 month 950% 24 month 95% 4.76A R94% R32% 9.52% 14.63%

What is the effective interest rate fora. 15% compounded quarterly?b. 18% compounded semi-annually?

The following table lists several corporate bonds issued during the second quarter of 2015. Company AT&T Bank of America General Electric Goldman Sachs Verizon Wells Fargo Time to Maturity (years) 10 10 2 3 8. 7 Annual 3.40 4.00 5.25 6.15 5.15 3.50 Rate (%) If you spent $40,000 on Bank of America bonds, how much interest would you earn every 6 months? HINT [See Example 3.] $ How much interest would you earn over the life of the bonds? $

An investment on a machinery can yield following cash flow for 8 years and in the end of the 8th year resale value will be 15,000 dollars. How much can be invested on this machinery at the present time, considering the interest rate of 10% compounded annually. Please explain your work in detail. C-? 1-2000 1-2000 -2000 -2000 -1000 -1000 1-1000 -1000 L-$15,000 2. 4. 7. C: Cost, I: Income, L: Salvage Value