assume the bond matures on today’s date (May 28) in its maturity year. Note that price is expressed in percentage of par value. Company XYZ Inc. Coupon 7.000 Maturity May. 28‚ 2017 Price 97.667 Yield a. How much would this bond cost you to buy today if its par value is $1000? b. What is the bond’s yield to maturity? c. If your required return is 9% APR‚ would you buy this bond today? Show work to prove why or why not. 2. A year ago‚ you purchased two bonds issued by the same company‚ ABC Co. : (1)
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Andrés Becerra Espinoza Ms. Mary Glenn English 10th Grade March‚ 21 2013 What is the Deep Web Surface Web and its Benefits There is a big influence of technology on our daily life. Electronic devices‚ multimedia and computers are things we have to deal with everyday. The Internet‚ especially‚ is becoming more and more important for nearly everybody as it is one of the newest and most forward-looking media and surely -“the”- medium of the future. (Markus Temmel‚ Martina Theuermann‚
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smelly too. This is because her home is underneath the surface of the earth‚ in the year 3000 aliens attacked our planet‚ ever since they have attacked the earth they have been living underground. Their government talked to the aliens and made a deal every 1000 years there would be a competition. 10 humans and 10 aliens would compete to the death‚ and whichever side won would be able to live on the surface again. No human has been on the surface since the war. The government watches the kids throughout
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As geologists‚ we examine layers of sediment on the Earth’s surface to approximate the dates of past geologic time periods. Ah sediment as you know is material like sand‚ gravel‚ fossil fragments that is transported by natural processes like wind ‚ water flow or the movement of glaciers. So sediment is transported and then deposited and it forms layers on the Earth’s surface over time. We examine these layers to learn about different geologic time periods including when they began and ended. For
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Sculpting the Earth’s Surface The Grand Canyon The state of Arizona is home to one of the most breath taking canyons known to Earth‚ the Grand Canyon. Its astounding depth and extravagant size are both mouth dropping and catching to the public’s eye. It is one of the world’s most popular tourist’s attractions that lour millions of people from all over the world every single year. With its deep color‚ size and beautiful display of rock layers‚ the Grand Canyon is a view few people will not forget
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Skimming the Surface of Babbitt Not all of us can have a great escape with that fairy child in our dreams. In Chapter 1 part II of the satirical phenomenon‚ Babbitt‚ by Sinclair Lewis; he really gives you something to ponder. In the previous section Lewis had just ended saying how the city of Zenith was “built-it seemed- for giants”‚ putting this city on a pedestal for its community. This statement is already mocking the citizens of Zenith who are materialistic middle-classmen‚ like Babbitt
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Western Oregon is a region that is threatened by landslides that can cause hazards to the public’s safety‚ their natural resources‚ and infrastructure. The most hazardous areas are in the mountain terrains. Landslides are a common occurrence in Western Oregon. They can be very devastating to homes and businesses and each year millions of dollars are spent repairing the damage caused by landslides (Hofmeister‚ 2002). Landslides are not individual events‚ they occur in conjunction with other factors
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default risk premium table in the text. What yield would you predict for each of these two investments? Treasury Bond Risk-free rate = 4.00% Maturity: Expected inflation: Expected inflation: Expected inflation: 12 for the next for the next for the next Inflation premium = 2 years = 4 years = 6 years = 12 ((G17*D17)+(G18*D18)+(G19*D19))/D20 3.33% Maturity risk premium = 1.1% 0.1*(C16-1)% 12-year Treasury yield= 2% 3% 4% 8.43% 7-year corporate
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current yield. * Compare the current yield to the yield to maturity. For which bonds is current yield closer in value to the yield to maturity? Explain 2. Term Structure of Interest Rates: Go to http://www.yieldcurve.com/MktYCplotter.asp This web site allows you to plot the yield curves for UK Gilts and US Treasuries for different periods. 1. List the three facts about the term structure of interest rates 2. Select a period and print a plot of an upward yield curve. Make
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Median 100.05 103 4.5 105.936 Maximum 1104.5 1108 12.75 173.5 Minimum -84.5 -127 0 40.98 Standard Deviation 74.90148 79.00204 1.973621 11.29507 In this table we can see that there is a little bit difference when compare the treasury security yield curve spread and option adjusted spread. Figure 1: Industry Distribution According to the chart we can see that the data we obtained concentrate on the industrial and financial industry‚ while mostly industrial. The rest are utility‚ treasury‚ mortgage
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