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Author Question: Beta is the slope of the security market line. Indicate whether the statement is true or ... (Read 30 times)

EAugust

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on: Jul 10, 2018
Beta is the slope of the security market line.
 
  Indicate whether the statement is true or false

Question 2

Vitmix Industries Inc. is issuing a zero-coupon bond that will have a maturity of fifty years. The bond's par value is 1,000, and the current yield on similar bonds is 7.5. What is the expected price of this bond, using the semiannual convention?
 
  A) 25.19
  B) 250.19
  C) 750.00
  D) 1,000.00


jessicaduplan

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Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

Answer: A
Explanation: A)
Zero coupon bond price = = = 25.19
MODE = END, P/Y = 2, C/Y = 2
INPUT 100 7.5 ? 0 -1,000
KEY N I/Y PV PMT FV
CPT 25.19


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EAugust

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Reply #2 on: Jul 10, 2018
Thank you :)


jessicaduplan

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Reply #3 on: Jul 10, 2018
Happy to help you


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