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Author Question: BondCoupon RateMaturityPriceYieldT-Note Strip01070.693.5%T-Bill0196.623.5%8-year ... (Read 40 times)

krzymel

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BondCoupon RateMaturityPriceYield
T-Note Strip01070.693.5%
T-Bill0196.623.5%
8-year T-Note5%8110.313.5%
7-year T-Note6.5%7118.343.5%
Each bond in the table has a face value of $100. The coupon bonds pay annual coupons, and the next coupon is due in one year. Assume that the yield curve is flat and all yields are currently 3.5%. If interest rates are forecast to rise to 4% from 3.5%, what is your profit if you short-sell the bond with the biggest anticipated (percentage) decline. (Assume you short-sell only one bond.)
◦ -$3.13
◦ -$2.13
◦ $2.13
◦ $3.13
◦ $4.13


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Marked as best answer by krzymel on Apr 25, 2021

reelove4eva

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krzymel

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Reply 2 on: Apr 25, 2021
:D TYSM


LegendaryAnswers

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Reply 3 on: Yesterday
Wow, this really help

 

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