Which of the following bond has the highest reinvestment risk? Bond Coupon Rate Maturity (years) A 8% 10 B 6% 10 C 6% 5 C A B

The price of a bond is the present value of the remaining interest payments plus the future value of the redemption amount the present value of the redemption amount 8 the face value 11 the current yield

The table below shows the bond issuer name, coupon, issue date, maturity date, rating, last traded price, first coupon payment date and previous coupon payment date: i. ii. Issuer Coupon Coupon Name. Rate Frequency A B 3.6 6.06 Semi- annually Semi- annually Issue Date 27/10/2020 5/1/2018 Maturity Date Rating Last Traded Price First Coupon Payment Date 27/10/2030 5/7/2029 A2 AA3 99.52 111.64 27/4/2021 5/7/2018 Previous Coupon Payment Date 27/10/2021 5/1/2022 The face value for these bonds is RM100. Assuming the last traded price listed above will be the price you have to pay to get these bonds, find their yield to maturity (YTM). If these two bonds are of the same maturity, do you expect its YTM will be almost the same value? Explain.

6.

Prepare a duration table for a zero-coupon bond using the following assumptions: a. $100,000 par value b. 10-year maturity c. Discount Rate of 12%

Prepare a duration table for a coupon bond using the following assumptions: a. $100,000 par value b. 7% coupon rate c. 10-year maturity d. Annual interest payments e. Discount rate of 12%

Suppose the term structure of interest rate is flat. Consider the following four bonds: Bond Term to Maturity (year) Coupon rate YTM 1 5 10% 7% 2 3 7 7 10% O a. 2,3,4,1 O b. 2,1,4,3 O c. 1,2,3,4 O d. 4,3,2,1 3% 3% 7% 4 7 If the yield-to-maturity for all bonds changes by 1%, rank the bonds from the lowest percentage change in price to the largest percentage change in price based on duration approximation. 7% 5%

Prepare a duration table for a zero-coupon bond using the following assumptions: a. $100,000 par value b. 10-year maturity c. Discount Rate of 12%

What is the correct answer - A bond with market price $104 matures at par in 5 years time. If it has acoupon of 3.625% the bond's yield to maturity is closest to: a) 3% b) 3.625% c) 2.75% d) 2%

A plot of the yields on bonds with different terms to maturity but the same risk, liquidity, and tax considerations is known as O A. a yield curve. B. a risk-structure curve. OC. a term-structure curve. 5- O D. an interest-rate curve. Suppose people expect the interest rate on one-year bonds for each of the next four years to be 3%, 6%, 5%, and 6%. If the expectations theory of the term structure of interest rates is correct, then the implied interest rate on bonds with a maturity of four years is nearest whole number). %. (Round your response to the 2- Refer to the figure on your right. Suppose the expected interest rates on one-year bonds for each of the next four years are 4%, 5%, 6%, and 7%, respectively. 1. 1.) Use the line drawing tool (once) to plot the yield curve generated. 3 Term to Maturity in Years 2.) Use the point drawing tool to locate the interest rates on the next four years. 5. 3- Interest Rate .....