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Author Question: The table, below, shows market prices for four zero coupon bonds with four different terms: one, ... (Read 25 times)

jjjetplane

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The table, below, shows market prices for four zero coupon bonds with four different terms: one, two, three and four years. The bonds all have a face value of $1,000. The yield curve derived from the bond prices in the table above is best described as

Term (years)Price ($)
1970.8738
2933.5107
3888.9964
4822.7025

◦ upward sloping with a 2% spread between short and long term yields.
◦ downward sloping with a 2% spread between short and long term yields.
◦ flat.
◦ upward sloping with a 1% spread between short and long term yields.
◦ downward sloping with a 1% spread between short and long term yields.


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Marked as best answer by jjjetplane on Apr 25, 2021

sailorcrescent

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jjjetplane

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


pratush dev

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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