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Author Question: What is the shape of the yield curve given the data on the three zero coupon bonds in the table ... (Read 72 times)

burton19126

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on: Apr 25, 2021

Question 1

The yield on a 1-year zero coupon bond selling today is 2%. The market expects that similar bonds sold in one year's time will yield 3%. According to the expectations theory, a 2-year zero coupon bond for sale today should have a yield of
◦ 2.0%.
◦ 2.5%.
◦ 2.75%.
◦ 3.0%.
◦ 5.0%.

Question 2

What is the shape of the yield curve given the data on the three zero coupon bonds in the table below? (Assume that each bond has a face value of $1,000.)

TermPriceYield
1 Year$9357%
2 Years$8826.5%
3 Years$8406%

◦ Downward sloping
◦ Upward then downward sloping
◦ Downward then upward sloping
◦ Upward sloping
◦ Flat
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Marked as best answer by burton19126 on Apr 25, 2021

maya.nigrin17@yahoo.com

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Reply #1 on: Apr 25, 2021
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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burton19126

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

scottmt

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

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