x
Info
x
Warning
x
Danger
 / 
 / 
 / 
111.Observing the following term structure; a US treasury bond maturing

Question : 111.Observing the following term structure; a US treasury bond maturing : 1404041

 

111.Observing the following term structure; a US treasury bond maturing in 1 year has a yield of 3% while US Treasury bond maturing in 2 years has a yield of 7%; what is the expected 1 year rate, 1 year from now?

a.10.16%

b.11.00%

c.11.16%

d.11.23%

112.Observing the following term structure; a US treasury bond maturing in 1 year has a yield of 5% while US Treasury bond maturing in 2 years has a yield of 6%; what is the expected 1 year rate, 1 year from now?

a.7.00%

b.7.01%

c.7.30%

d.5.66%

113.Observing the following term structure; a US treasury bond maturing in 5 years has a yield of 6% while US Treasury bond maturing in 3 years has a yield of 4%; what is the expected 2 year rate, 3 years from now?

a.10.00%

b.9.07%

c.8.86%

d.9.00%

114.Observing the following term structure; a US treasury bond maturing in 5 years has a yield of 6% while US Treasury bond maturing in 3 years has a yield of 8%; what is the expected 2 year rate, 3 years from now?

a.3.07%

b.8.07%

c.2.36%

d.4.35%

 

 

Solution
5 (1 Ratings )

Solved
Finance 1 Year Ago 40 Views
This Question has Been Answered!
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
275782 Finance Questions Answered!
Post a Question