Your Perfect Assignment is Just a Click Away

Starting at $8.00 per Page

100% Original, Plagiarism Free, Customized to Your instructions!


Fixed Income

Fixed Income

Fixed Income


1. [6pts] Given a five-year, 8% coupon bond with a face value of $1,000 and coupon payments made annually:

a. [1.5pts] What is the bond value if it is trading at the yield of 6%?

b. [1.5pts] What is the bond value if it is trading at the yield of 8%?

c. [1.5pts] What is the bond value if it is trading at the yield of 10%?

d. [1.5pts] Comment on the price and yield relation you observe. What are the percentage changes in value when the yield goes from 6% to 8% and when it goes from 8% to 10%?

2. [4pts] Suppose an investor bought a 10-year, 10% annual coupon bond at par (face value of $1,000 and paying coupons annually) and then sold it 3.5 years later at a yield of 8%. 

a. [1pts] What is the full price?

b. [2pts] What is the accrued interest the investor would receive when he sold the bond? (Use a 30/360-day count convention)

c. [1pts] What is the clean price?

3. [6pts] A zero-coupon Treasury bill maturing in 150 days is trading at $98 per $100 face value. Determine the following rates for the T-bill:

a. [2pts] Dealer’s annual discount yield? (use 360-day count convention)

b. [2pts] Yield to maturity? (Use an actual 365-day count convention)

c. [2pts] Logarithmic return (use an actual 365-day count convention)

4. [4pts] Calculate both Macaulay and modified durations of the eight-year, 8.5% coupon bond given a flat yield curve at 10%. 

"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.