What is the price of the 2018 canadian bond today

Assignment Help Business Management
Reference no: EM132742329

2018: Canadian interest rates are 1% and the Canadian 10 year par value bond is issued with annual coupon of 1% with face value 1,000CAD.

2019: Canada decreased interest rates to 0.50% and bond yields followed perfectly.

2020: Canada keeps interest rates at 0.50% and issues a new 10 year par value bond with annual coupon of 0.50% with face value 1,000CAD.

What is the price of the 2018 Canadian Bond today, with 8 years left until maturity, such that its yield is equal to the 2020 bond yield?

Reference no: EM132742329

Questions Cloud

How much should security cost : If the interest rate is 12.43%, then how much should this security cost? Help please
What factors would support myb assertion : Brad works as an AR clerk for MYB Corp. At MYB, he is required to work from 9 p.m. to 5 p.m. Monday through Friday and is provided a computer/computer software.
What rogue net profit margin is equal to : Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's net profit margin is equal to
Predict the one-year interest rate three years : Predict the one-year interest rate three years from today if interest rates are 3.5%, 4.0%, 4.5%, and 5% for bonds with one to four years to maturity
What is the price of the 2018 canadian bond today : What is the price of the 2018 Canadian Bond today, with 8 years left until maturity, such that its yield is equal to the 2020 bond yield?
The investment banker performs what three basic functions : A life insurance company purchases $1 billion of corporate bonds from premiums collected on its life insurance policies. Therefore?
How much is the interest income : Maharlika bank loaned P10,000,000 to XYZ Company on January 1, 2018. The term of the loan requires principal payment of P2,000,000 each year for 5 years plus.
Beginning balance of the mortgage pool : Finally, there is a 0.25% servicing fee each year based on the beginning balance of the mortgage pool.
How many additional units must sell : How many additional units must it sell? (Round any intermediate calculations to two decimal places and your final answer up to the nearest whole unit.)

Reviews

Write a Review

Business Management Questions & Answers

  How much do you have to pay for that surgery

Then, you have to go in for surgery and the cost is $20,000. How much do you have to pay for that surgery?

  Disadvantage within the same business strategy

As it pertains to business strategy, can R&D be both an advantage and a disadvantage within the same business strategy?

  What do you recommend microsoft do regarding bing

What do you recommend Microsoft do regarding Bing? Can Bing catch up to Google in search? How did Yahoo lose its lead in search to Google?

  Recommend any policy-method

Recommend any policy, method, or opinions for the current U.S. unemployment and inflation as a policy maker for either fiscal policy or monetary policy (or both

  Purpose of the installed smoke management system

The property owner asks you what the firefighters smoke control station (FSCS) is, and what is the purpose of the installed smoke management system?

  John portion of the sound stage warehouse

Sadly, John died unexpectedly. Who owns John's portion of the sound stage warehouse?

  Why do some organizations not invest in ethics training

Why do some organizations not invest in ethics training? Those that do offer the training once a year, is it sufficient?

  Opinion on what fugazzi said about the middle class

What is your opinion on what Fugazzi said about the middle class having fewr opportunities/jobs to fight over? (Article: Long - T erm Unemployment: The Economy's 'Secret Cancer')

  Change process to convey vision-strategies to stakeholders

Explain how successful communication is used throughout a change process to convey vision and strategies to stakeholders.

  Do you think ford made their decisions lightly

However, do you think Ford made their decisions lightly? Do you think they can afford making decisions without analyses? No, of course not. One of the major factors in buying a heavy truck is oil price.

  The different methods for collecting secondary data

Students able to understand what secondary data is and what are the different methods for collecting secondary data.

  Empirical results match the theoretical results

According to the Central Limit Theorem,what should the (theoretical) value of sx¯ equal for your specific x4distr2 sampling distribution?

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!

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