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attashe74 [19]
3 years ago
8

6. A zero coupon bond with 2.5 years to maturity has a yield to maturity of 25% per annum. A 3-year maturity annual-pay coupon b

ond has a face value of $1000 and a 25% coupon rate. The coupon bond also has a yield to maturity of 25%. Does the longer maturity bond have a larger interest rate sensitivity? Why or why not? Calculate for each bond the percentage price change associated with a change of yield to maturity from 25% to 26%.
Business
1 answer:
kari74 [83]3 years ago
3 0
Ahaha s we. S s s s s s s s s. S ss
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Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.5% in Germany. I
Marianna [84]

Answer: 1.356345

Explanation:

Based on the scenario and information provided in the question, the 90-day forward rate will be calculated as:

= Spot Rate × (1 + Germany Interest Rate) / (1 + United States Interest Rate)

= 1.35 × (1 + 6.5%) / (1 + 6%)

= 1.35 × (1 + 0.065) / (1 + 0.06)

= 1.35 × 1.065/1.06

= 1.35 × 1.0047

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International monetary analysis focuses on Group of answer choices the international trade side of the international economy. th
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Answer:

the monetary side of the international economy, such as currency exchange.

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An exchange rate can be defined as a number used to represent the value of one country's currency in comparison to another.

International monetary analysis focuses on the monetary side of the international economy, such as currency exchange.

6 0
3 years ago
Which one of these is covered by a specific type of insurance policy?
irina1246 [14]

Answer:

A.Off grid homes

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Specific type of insurance policy covers the most common perils except those specifically excluded perils such as earthquake, flood, nuclear disaster, landslide.

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Therefore, these homes can be insured by a specific type of insurance policy.

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In the late 1500s, the city of Antwerp was under siege by the Duke of Parma. The siege caused the price of food to rise, so the
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