1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
My name is Ann [436]
3 years ago
13

Treasury spot interest rates are as follows: Maturity (years) 1 2 3 4 Spot rate (EAR) 1.4% 2.8% 3.6% 4.5% What is the price of a

risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)? (answer,0+ decimals)
Business
1 answer:
Salsk061 [2.6K]3 years ago
8 0

Answer: $868

Explanation:

Given the following :

Maturity (years) - - - - - - 1 - - 2 - - - 3 - - - 4

Spot rate (EAR) - - - - 1.4% - 2.8% - 3.6% - - 4.5%

What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)?

Face value / ( 1 + spot rate)^p+1

Where P = year

=1000/(1+3.6%)^4

1000 / ( 1 + 0.036)^4

1000/(1.036)^4

1000/1.151964303616

=$868.08245

You might be interested in
Identify the element of sensory memory that would be most useful in quickly scanning a map of a country to learn the geographica
alisha [4.7K]
Had to look for the missing options and here is my answer.

The element of sensory memory that is being described above is ICONIC. Iconic memory is part of the visual memory, and this is when someone is able to store visual information. This is stimulated with pictures and images and may be in a form of short term or long term memory. Hope this answer helps.
4 0
3 years ago
Read 2 more answers
Isabella wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $1.50 per gallon, t
max2010maxim [7]

Answer:

50 cents

Explanation:

8 0
3 years ago
Read 2 more answers
​A(n) _____ is a person who organizes and starts a​ corporation, negotiates and enters into contracts in advance of its​ formati
Nutka1998 [239]

Answer: Promoters

Explanation:

 A promoters is the person in an organization who start the corporate and manage the investors for the financial purpose. The promoters has ability to handle and also understand the actual requirement of the customers.  

 The main responsibility of the promoters is that they done all the necessary formalities regarding the organization investing registration and they also deal with the contracts in the business.

They also promote the company or organization by gain maximum project through the investing process.

6 0
3 years ago
You've started using the sq3r method of learning. after surveying a reading assignment, you go to the next step, which does this
Blababa [14]
You've started using the sq3r method of learning. after surveying a reading assignment, you go to the next step, <span>Reading the headings and turning them into question.</span>
4 0
3 years ago
Which of these is the result of a government-regulated natural monopoly?
mezya [45]
I believe it would be C.) multiple installations of gas, water, and electric lines
5 0
3 years ago
Read 2 more answers
Other questions:
  • Your financial institution can’t help you if there is a mistake on your bank account statement ?
    5·2 answers
  • If a person has liability insurance what would they be covered for
    5·1 answer
  • In the narrowest definition of money, M1, savings accounts are excluded because they are a interest paying accounts. b not a med
    14·1 answer
  • Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock
    12·1 answer
  • What is more volatile over time non-monetary real interest rate or risk-free rate of interest?
    7·1 answer
  • At December 31, 2018, Oriole Company reported the following information on its balance sheet.
    11·1 answer
  • A firm has a debt-to-equity ratio of 0.50 and debt equal to $35 million. The firm acquires new equipment with a 3-year operating
    13·1 answer
  • Helen Ming receives a travel allowance of $120 each week from her company for time away from home. If this allowance is taxable
    7·1 answer
  • 4 causes of small business failure​
    5·1 answer
  • Gloria deposited $500 into a bank account that earned 7. 5% simple interest each year. She earned $225 in interest before closin
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!