Fin 4486 Study guides, Class notes & Summaries

Question 1 0 out of 4 points Company A can borrow fixed at 7.9 percent and floating at LIBOR percent. Company B can borrow fixed at 8.9 percent and floating at LIBOR+0.28571 percent. A financial intermediary charges a fee of 0.1 percent. Company A wishes to borrow floating and company B wishes to borrow fixed. Assume the gain is evenly split between the two parties and floating rate legs are LIBOR. Design the swap. What is the company A’s fixed rate leg and company B’s fixed rate leg,...

Question 1 The prices of 1, 2, 3, and 4-year zero coupon government bonds are 95.42, 90.36, 85.16, and 78.81, respectively. What is the par coupon on a 4-year coupon bond selling at par? 5.02 % 5.43 % 5.81 % 6.06 % Question 2 The price of a 3-year zero coupon government bond is 85.16. The price of a similar 4-year bond is 79.81. What is the yield to maturity (effective annual yield) on the 4-year bond?

Spring 2023MIDTERM EXAM A. answers all the questions as a review for the midterm exam. B. Suggested length: one page per Question or Problem; Quality, rather than quantity is rewarded.(Times New Roman 11-font size; 1.5 spacing) C. Please be very precise, specific, and direct in your answers. In calculations, approximate to four decimal places. D. You will be answering Five Select questions/problems from these questions only. The questions will be identical while the concept will be the same...

Fixed Income The roots of the bond market What do the green bars at the bottom signify? According to the table on the right, which country owns 2.9% of total US debt? What quality of US government bonds causes investors to buy them when market volatility rises? Why is fixed income called fixed income? Question1: Question2: Question3: Question4: Bond Valuation When investors doubt the creditworthiness of a As a general rule, what percentage of debt to GDP will make a government’s bond yields sp...

Fixed Income The roots of the bond market What do the green bars at the bottom signify? According to the table on the right, which country owns 2.9% of total US debt? What quality of US government bonds causes investors to buy them when market volatility rises? Why is fixed income called fixed income? Question1: Question2: Question3: Question4: Bond Valuation When investors doubt the creditworthiness of a As a general rule, what percentage of debt to GDP will make a government’s bond yields sp...

Summary BMC Fixed Income Test, Complete Questions & Answers. Fixed Income The roots of the bond market What do the green bars at the bottom signify? - Surplus According to the table on the right, which country owns 2.9% of total US debt? - Belgium What quality of US government bonds causes investors to buy them when market volatility rises? - US government bonds are considered low risk Why is fixed income called fixed income? - Because the repayment amounts and timings are fixe...

Fixed Income The roots of the bond market What do the green bars at the bottom signify? According to the table on the right, which country owns 2.9% of total US debt? What quality of US government bonds causes investors to buy them when market volatility rises? Why is fixed income called fixed income? Question1: Question2: Question3: Question4: Bond Valuation When investors doubt the creditworthiness of a As a general rule, what percentage of debt to GDP will make a government’s bond yields sp...

A call option gives the holder: Student Response Value Correct Answer Feedback A. the right to buy something 100% B. the right to sell something 0% C. the obligation to buy something 0% D. the obligation to sell something 0% E. none of the above 0% Score: 1/1 2. You purchased two XYZ June 80 call options at a premium of two dollars. The strike price of these options is:

Title: Futures Online Quiz #1 Started: January 15, 2008 5:33 PM Submitted: January 15, 2008 6:11 PM Time spent: 00:37:33 Total score: 11/20 = 55% Total score adjusted by 0.0 Maximum possible score: 20 1. Futures and options are similar in all of the following ways except _______________. Student Response Correct Answer Feedback A. expiration dates are standardized B. deliverable quantities are standardized C. the owner is not obligated to proceed with the transaction D. All...