代做Homework 3: Practice Problems for Final Exams Part 3代写数据结构语言程序

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Homework 3: Practice Problems for Final Exams Part 3

Question 1

0.5 / 0.5 pts

A Walmart bond paying 5% coupon annually due in 4 years is selling at 91% of par value. The table below summarizes the spot rates.

t   spot rate

1   3.20%

2   4.00%

3   4.90%

4   5.60%

What should be the price of a bond from Walmart that offers 3% coupon and is due in 3 years (assume par=100).

91%

89.35%

102.55%

None of these

Question 2

0.5 / 0.5 pts

The par yields are 4.5% for the one-year bond, 5.00% for the two-year bond, and 5.8% for the three-year benchmark bond.

What is the forward rate (f3) for discounting CFs from year 3 to year 2?

7.57%

5.86%

5.01%

None of this

Question 3

0.5 / 0.5 pts

A bond with par value of 100 paying 5% annual coupon is due after 3 years.

Assume the following Forward rates for the four paths.

t   LL   LH   HL   HH

1   2%   2%   2%   2%

2   4.50%   4.50%   6%  6%

3   5%   7%   7%   9%

Value the bond (at time 0) by using path-wise valuation.

93.82

92.06

100.99

None of these.

Question 4

0.5 / 0.5 pts

The one-year forward rates are as follows(1) currently, F0,1 is 5%; (2) one years from now, F1,1 is 6.5%; (3) 2 years from now, F2,1 is 4%.

A three-year 6% annual coupon bond is callable at par after 1 and 2 years from now. What is the value of the callable bond (as a percentage of par).

100.51

100

101.92

None of these

Question 5

0.5 / 0.5 pts

A bond with par value of 100 pays annual coupon of 5%; it is maturing in two years. The bond is callable at par at the end of year 1.

The 1-year short rate is currently 2%. After one year (T=1), Forward Rate can be 8% or 4%; both scenarios are equally likely.

What is the bond price at time 0?

97.22

102.55

100.84

None of these

Question 6

0.5 / 0.5 pts

The expected annual growth rate for a firm is 5% , the volatility is 25%. It's Debt-to-asset ratio is 50%.

What is the probability of default (assuming debt is due in five years)?

8.99%

7.56%

23.11%

None of these




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