What is the price per $100 face value of a two year, zero coupon, risk free bond?

Suppose the current zero coupon yield curve for risk free bonds is as follows:
Maturity (years) 1 2 3 4 5

  1. YTM 5.00% 5.50% 5.75% 5.95% 6.05%a. What is the price per $100 face value of a two year, zero coupon, risk free bond?
    b. What is the price per $100 face value of a four year, zero coupon, risk free bond?
    c. What is the risk free interest rate for a five year maturity?
  2. Suppose a seven year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.75%
    a. Is this bond currently trading at a discount, a par, or at a premium? Explain.
    b. If the yield to maturity of the bond rises to 7.00% (APR with semiannual compounding) what price will the bond trade for?

College essays online

Order a unique copy of this paper
(550 words)

Approximate price: $22

Features of our services
  • Free page formatting and referencing
  • Free revisions
  • Unique content
  • Money-back guarantee
  • 24/7 customer care
On-demand options
  • Our samples
  • Progressive delivery
  • Fulltime delivery
  • Copies for references used
  • Proofreading and Editing
Our formats
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double spacing
  • All referencing styles (APA, MLA, Chicago/Turabian, Harvard)

What we guarantee our customers

We provide our clients with 100% unique papers or assignments. This proves how much we value you
We guarantee quality services. Confidentiality of your information is our first priority.

Total satisfaction of our customers

We handle your work according to instructions you have provided. If you feel we did not meet your requirements, ask for revision. We also guarantee your money back if we do not follow your instructions per say

Read more

No plagiarism

We have no tolerance to plagiarism. Our experts double check your work to ensure its free of palgiarism. If any case of copied work is identified, we handle it with utmost severity

Read more

Free revisions

We are happy for trusting us with your assignment. Collegessaysonline offers you unlimited number of revisions as an act of courtesy. We want you to succeed in your future endeavors.

Read more

Privacy policy

Our Company is committed to protect your privacy. We do not compromise your privacy by using your personal details for our own gain. As an act of courtesy, we assure you complete anonymity

Read more

Fairness guarantee

By outsourcing our services, you agree to trust us with your work. We will do all it takes to meet your instructions. We ask for your coperation to help us reach our goals.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency