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Q6. Which of the following statements regarding zero-coupon bonds and spot interest rates is least accurate?
A) Price appreciation creates all of the zero-coupon bond's return.
B) Zero-coupon bonds have no coupons.
C) Spot interest rates will never vary across the term structure.
Q7. An investor gathers the following information about a 3-year, annual-pay bond:
- Par value of $1,000
- Coupon of 8%
- Current price of $1,100
- 1-year spot interest rate is 5%
- 2-year spot interest rate is 6%
Using the above information, the 3-year spot rate is closest to:
A) 4.37%.
B) 8.20%.
C) 4.27%.
Q8. The 3-year spot rate is 10%, and the 4-year spot rate is 10.5%. What will the 1-year rate be 3 years from now?
A) 10.0%.
B) 12.0%.
C) 11.0%.
Q9. An analyst observes that the current 6-month T-Bill rate is 8% (4% semi-annually) and the one-year T-Bill rate is 9% (4.5% semi-annually). There is an existing 1.5-year, 9% semi-annual coupon bond selling for $990. What is the annualized 1.5-year spot rate?
A) 8.8%.
B) 9.5%.
C) 9.8%.
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发表于 2009-3-4 09:31
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