WE WRITE CUSTOM ACADEMIC PAPERS

100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

QUESTION 1 You own a bond that has a duration of 7 years

QUESTION 1You own a bond that has a duration of 7 years. Interest rates are currently 6% but you believe the Fed is about to increase interest rates by 100 basis points. Your predicted price change on this bond is ________.-0.7%-1.4%-2.5%-6.6%1 points QUESTION 2The bonds of ABC Company have received a rating of “A” by S&P. The “A” rating indicates the bonds are _________.low gradeintermediate gradeinvestment gradejunk bonds1 points QUESTION 3Consider the expectations theory of the term structure of interest rates. If the yield curve is downward sloping, this indicates that investors expect short-term interest rates to __________ in the future.increasedecreasenot changechange in an unpredictable manner1 points QUESTION 4What is the YTM on a bond with 10 years to maturity, 8% coupon rate, semi-annual coupon payments, and a price of $921?4.0%4.6%9.2%9.6%1 points any help will be appreciated!QUESTION 5What is the duration of a ten-year zero coupon bond with a YTM of 7%, par value of $1,000, and a AAA credit rating?2 years7 years10 yearsNone of the above1 points QUESTION 6You want to invest in a bond portfolio that you will use later to payoff a liability due in 7 years. Which of the following bond portfolios would immunize you from interest rate risk.A) Zero coupon bonds with 7 years to maturityB) A portfolio of bonds with a duration of 7 yearsC) A portfolio of bonds with an average 7 years to maturityA and BA and C1 points QUESTION 7A coupon bond pays semi-annual interest is reported as having an ask price of 97% of its $1,000 par value in the Wall Street Journal. If the last interest payment was made 3 months ago and the coupon rate is 2%, the invoice price of the bond will be _________. Choose the closest answer.$970$975$985$9901 points QUESTION 8What would most likely happen to the YTM on the sovereign bonds of a country if that county becomes riskier and may have difficulty making future payments?YTM will riseYTM not affectedYTM will fall1 points QUESTION 9What is the annual coupon payment paid in year 2 of a 10 year maturity TIPS with a par value of $1,000, annual coupon rate of 4%, and inflation of 1% in year 1, 2% in year 2 and 4% in year 3?$41$51$60$711 points QUESTION 10Everything else equal the __________ the maturity of a bond and the __________ the YTM the greater the sensitivity of the bond’s price to interest rate changes.longer; higherlonger; lowershorter; highershorter; lower

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Instant Quote
Subject:
Type:
Pages/Words:
Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Level:
Currency:
Total Cost: NaN

Get 10% Off on your 1st order!