Reference no: EM132842822

1) The bond pays annual coupon 4%, has a face value $1000. Three months have passed since last coupon. Using 30/360 day count convention, determine the accrued interest. Round your answer to a cent.

2) The discount factors of swap payments are as follows:

1. 0.98
2. 0.8
3. 0.6
4. 0.5

Calculate the swap fixed rate. Your answer should be in percentage points rounded to the nearest basis point. E.g. 17.6485% should be entered as "17.65"

3) Four year spot rate is 4%, and five year spot rate is 5%. Calculate the one year forward rate at 4 year, i.e. borrowing for one year where the money is borrowed at year 4 end.

Round your answer to the nearest basis point and answer in percentage points, i.e. 5.1456% should be entered as "5.15"

4) Between coupon payments tThe present value of the future cash flows of a bond is called...

1. A clean price
2. A dirty price
3. A full price
4. accrued interest

5) The dirty price is a sum of accrued interest and the clean price

1. Yes
2. No