1. Under the pure expectation theory, when 1-year maturity yield 6.0%, 2 years maturity yield 6.2%, 3 years maturity yield 6.4%, 4 years maturity yield 6.5%, 5 years maturity yield 6.5%, what is the interest on two years security, three years from now, the forward rate: I 3,2)? (Hint: use the forumula (1+i m+n)^(m+n)=(1+i m)^m+(1+ i m,n)^n)
2. Ms. Sharon Corporation has 5-year bonds. The inflation premium (IP) on a 5year bond is 1.00%. The real risk-free rate is r* = 2.80%, the default risk premium for her bonds is DRP = 0.85% versus zero for T-bonds, the liquidity premium on her bonds is LP = 1.20%, and the maturity risk premium for all bonds is found with the formula MRP = (t – 1) x 0.1%, where t = number of years to maturity. What is the yield on her Corporation’s 5-year bonds?
As the best, my homework help website in the world, Writersabc.com strives to deliver only high-quality finished papers to all customers. We value impeccable quality and guarantee that we will deliver on that promise more than anything else. We will deliver!
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
Have you received your finished paper but are not satisfied with what our writer submitted? You can initiate our money-back guarantee to get your money back with no strings attached.Read more
Writersabc.com is the best my homework help website in the world. At WritersABC, we have a team of certified, tried, and tested writers who work around the clock to ensure that you receive only high-quality, 100% original finished papers.Read more
At WritersABC, we guarantee all our customers of the best essay writing service in the writing industry. And that’s precisely what we strive to deliver. As such, we encourage all our customers to utilize our unlimited free-revision policy if you aren’t satisfied with your paper. Don’t accept any paper until you are 100% satisfied with it.Read more
We value the trust that our clients accord us and respect every customers’ rights to personal data protection. We will never share, sell, or rent any information that we collect from you with any third parties. Both your personal and financial information is safe with us.Read more
We have only gotten this far with the help of our loyal customers and a team of dedicated experts. As the best, my homework help website, WritersABC implores customers to help make our writers’ work easier. Visit our fair-cooperation guarantee for more information on the same.Read more