Business, 12.02.2020 05:48 bob4059

Assume that short-term rate, r1 = 6%, and that the expected market rates, and . Also assume that the unbiased expectations theory holds such that the forward rates are identical to expected spot rates.

a. What should be the current price of a 3-year, $1000 bond with a 12% coupon rate? Assume annual coupon payments.
b. What is the yield-to-maturity for this bond?

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The question is missing some details,however find the complete question with the underlined figures being the missing ones below:

Assume that short-term rate, r1 = 6%, and that the expected market rates

E(r 12 ) = 7 % and E(r 23 ) = 9 % . Also assume that the unbiased expectations theory holds such that the forward rates are identical to expected spot rates.

a. What should be the current price of a 3-year, $1000 bond with a 12% coupon rate? Assume annual coupon payments.

b. What is the yield-to-maturity for this bond?

a.The current price of the bond is $ 1,082.87

b.The yield to maturity is 8.74%

Explanation:

Find detailed computations of the bond price and yield to maturity in the spreadsheet attached.

Please note that in calculating the present of the bond i.e current price ,the rate changes from year to year as given in the question.

Answer from: Quest

the answer is either "loser" or "dumb*ss"

gods, i'm only joking, don't ban me.*

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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Assume that short-term rate, r1 = 6%, and that the expected market rates, and . Also assume that the...

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