What is the yield on a four-year bond

Assignment Help Finance Basics
Reference no: EM132481904

Suppose today is January 2, 2020, and currently a three-year Treasury bond that matures on December 31, 2020 has a yield equal to 2.9 percent. If investors expect the one-year (12-month) nominal risk-free rate of return to be 2.5 percent in 2023, what is the yield to maturity for Treasury bonds that mature at the end of 2023? That is, what is the yield on a four-year bond? Assume the Treasury bonds do not have maturity risk premiums.

Reference no: EM132481904

Questions Cloud

What amount of equity income would a have recognized : Of this total, 40% was not consumed until 2014. What amount of equity income would A have recognized in 2013 from its ownership interest in B
How balance scorecards impact knowledge creation : Review the section on knowledge creation, culture, and strategy. Explain how balance scorecards impact knowledge creation, culture, and strategy.
Describe the various religious subcultures : Explain the role of geographic regions as subcultures and they affect the marketing strategy of the company that you are researching.
Compute balance in the Investment in B account at December : Assume A has the ability to significantly influence the operations of B. The balance in the Investment in B account at December 31, 2012, is
What is the yield on a four-year bond : That is, what is the yield on a four-year bond? Assume the Treasury bonds do not have maturity risk premiums.
Determine the cost of employing Walker for the year : The Canadian Pension Plan (CPP) rate is 4.95% of the first $53,600 in earnings, Determine the cost of employing Walker for the year
Discuss the digital marketing strategies : Discuss the digital marketing strategies that will be used to promote organizational growth. Consider factors including B2B verses B2C considerations in digital
What is the hamiltonian : What is the Hamiltonian? Find expressions for the derivatives of the position operator X and momentum operator P - Solve for the position and momentum operators
What is the amount that you owe the bank today : If the loan was a 5 year loan with monthly payments of $396.02 what is the amount that you owe the bank today? Assume that you have not missed any of your regul

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe jurisdiction of courts and venue

Suppose our corporation has entered into written contracts with the call center in Fabulous County, Florida. Recently, the call center has not been paying for your company's services.

  Explain the project assessment methods

Research Exxon Mobil and find a capital project that has been completed in the last 5 to 10 years. Explain the project assessment methods that Exxon Mobil

  How much would you expect your call option to sell

There was 50/50 chance of price going in the future to 100 or 120, how much would you expect your call option (at 105) to sell for

  Niece in the account

She also wants to leave $25,000 for her niece in the account. How many years can she withdraw $35,000 and have $25,000 left in the end?

  Briefly describe the three categories of cash flows

Changes in current assets and current liabilities are used in determining net cash flows from operating activities. Changes in which balance sheet accounts.

  What is the operating cash flow

If the tax rate is 35 percent, what is the operating cash flow, or OCF?

  Ultimate bond strength and development length

What do you understand by ultimate bond strength and development length? Explain briefly.

  Compare the political activities of white women

Compare the political activities of white women and Cherokee women, and examine the way in which ideas about gender roles shaped women

  Workers compensation medical claim

A workers compensation medical claim is set up to cover medical costs for the next 12 years. It will make an initial payment at time t=0 of $10,218.

  Which type of risk declines

Beginning with an investment in one company's securities, as we add securities of other companies to our portfolio, which type of risk declines?

  How do unearned revenues arise

Coltrane Company has a $5,000 note payable that is paid in $1,000 installments over five years. How would the portion that must be paid within the next year.

  Financial objective of company in maximization

The primary financial objective of a company is the maximization of the wealth of shareholders ...per corporate finance theory.    However, this objective is usually replaced by the surrogate objective of maximization of the company's share price...

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