User Account

All Pages

Describe the term structure of two interest rates

Assignment Help Finance Basics
Reference no: EM132704861

There are 2 securities: 

Date:2020/9/30 ISIN :GB00BL68HH02, Face value:100, Coupon:0.375,Maturity: 2030/10/22,Clean Price 101.14 ,Dirty Price :101.2845 ,yield:0.260087, Mod Duration:9.853927, Accrued Interest:0.144467

Date:2020/9/30, ISIN: GB00BZB26Y51, Face value:100, Coupon:1.75, Maturity:2037/9/7, Clean Price:118.12, Dirty Price:118.236022, Yield:0.621025, Mod Duration:14.88398, Accrued Interes:0.116022

  1. Explain how to calculate the interest rates on these financial instruments on September 30, 2020. Provide details for the steps and your results.
  2. Describe the term structure of these two interest rates calculated, and use the theories of the term structure you learned from the module to explain the observed term structure.

Reference no: EM132704861

Questions Cloud

Which disclosure of deferred tax assets and liabilities : Illini files separate tax returns in Bears and Packers. Illini's balance sheet should have the following disclosure of deferred tax assets and liabilities
Which is an example of a change in reporting entity : Which differences between financial accounting and tax accounting ordinarily creates a deferred tax liability? Which an example of a change in reporting entity?
Present value of the operating leases : At the end of 2015, a company reports the following future lease commitments on its operating leases:
Deal of controversy over the affordable care act : There has been a great deal of controversy over the Affordable Care Act, also known as obamacare.
Describe the term structure of two interest rates : Describe the term structure of these two interest rates calculated, and use the theories of the term structure you learned from the module
Make the journal entry to record the acquisition : Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $12,000,000 cash. Make the journal entry to record the acquisition
Write a lab report to go with the coding prompts : Write a lab report to go with the coding prompts? Or just do the coding, and turn in our code/graphs? What is expected for that problem?
Which is not one of the approaches for reporting accounting : Which is not one of the approaches for reporting accounting changes? The modified retrospective approach. / The prospective approach.
Calculate the liquidity index for infinity bank : "Sakura Bank is facing a short-term liquidity deficit. It plans to cover this deficit with either an ordinary share issue or an interbank borrowing arrangement.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the additional annual financing cost

Calculate the additional annual financing cost of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations.

  Which set of cash flows is worth more now

Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive:

  Mm proposition i with taxes

The Maxwell Company is financed entirely with equity. The company is considering a loan of $1.72 million. The loan will be repaid in equal installments over the next two years, and it has an interest rate of 8 percent. The company's tax rate is 35..

  As a follow-up to the practice exercise above new

trend analysis refer to the metropolis health system mhs comparative financial statements at the back of the examples

  Discuss aspects of the tax and transfer systems

Consider Eleanor, who qualifies for the earned income tax credit as depicted in Figure. Suppose that Eleanor can earn $8 per hour.

  Stock markets and the economy

Assess the impact on the U.S. stock market when the Federal Reserve increases the money supply, and whether or not you believe the impact is predictable.

  What is the tax liability without the ancg

Wayne is single and has no dependents, without considering his $11,000 adjusted net capital gain, his taxable income, which inculdes no investement income.

  Differences between capm and international capm

Explain the main similarities and differences between the CAPM and the International CAPM (ICAPM).

  What is opportunity cost to penn steelworks of funds tied up

(Lockbox system) Penn Steelworks is a distributor of cold-rolled steel products to the automobile industry. All of its sales are on a credit basis, net 30 days.

  Terminal value homework problem

Firm C is considering the acquisition of Firm T. Firm C has estimated the cash flows, cost of capital, and growth rate for firm T shown below.

  How much will bill and molly need to invest annually

How much will Bill and Molly need to invest annually to make up their income shortfall? Into what account(s) would you suggest they make the investments?

  How do you motivate yourself to save

They may be much more willing to save if they have a specified future reward as a result of their saving behavior. How do you motivate yourself to save?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd