What is the price of a 3-year zero-coupon us government

Reference no: EM133368582

Question a) What is the price of a 3-year zero-coupon US government real bond with the (real) face value of $1,000 issued on January 24, 2011, on its issuance day (discount rate for that day is 0.308099985122681)?

Question b) Suppose you buy a real bond from part a) on January 24, 2011, and hold it for exactly 1 year until January 24, 2012 (discount rate for that day is 0.628700017929077) and then sold it. How many dollars did you make or lose from this investment?

Reference no: EM133368582

Questions Cloud

What would you expect the nominal rate of interest : Inflation and interest rates what would you expect the nominal rate of interest to be of the rate is 4.4 percent and the expected inflation rate

How does the d in abbreviation suggest that proteins : How does the "D" in the abbreviation suggest that proteins behave in contrast to the "standard" view of proteins?

What factors led to war in europe : What factors led to war in Europe? Describe the events that led the United States into World War I?

Advantages and disadvantages of using expert system : Discuss in detail any advantages and disadvantages of using expert system in medical diagnosis - diseases and symptoms and will result a list of possible

What is the price of a 3-year zero-coupon us government : What is the price of a 3-year zero-coupon US government real bond with the (real) face value of $1,000 issued on January 24, 2011, on its issuance day

Market for protection services : How can growth and persistence of a unified empire in China be explained in terms of a market for protection services?

Introduction-tear gas epiphanies-new economies of protest : Kirsty Robertson, "Introduction," Tear Gas Epiphanies: New Economies of Protest, Vision and Culture in Canada. McGill-Queen's University Press, 2019.

Create a new pseudocode to calculate the average of number : CST8283 Algonquin College Create a new pseudocode to calculate the average of any number of positive integers. The number will be determined by the user

Calculate how much bravo company would pay in federal taxes : bravo company has revenues of $10,426,000 and pre-tax income of $713,000. The federal corporate tax rate is 21%. Calculate how much bravo company would pay

User Account

All Pages