Scribd Logo
Upload

Welcome to Scribd!

  • 2 views

    Fia-Internal Assessment 3-Final Part (50 Marks)

    Uploaded by

    babedikhumo065

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Fia-Internal Assessment 3-Final Part (50 Marks)

    Uploaded by

    babedikhumo065
    2 views2 pages

    Original Title

    Fia-Internal Assessment 3-Final Part [50 Marks] (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2 views2 pages

    Fia-Internal Assessment 3-Final Part (50 Marks)

    Uploaded by

    babedikhumo065

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    ANSWER ALL THE QUESTIONS [50 MARKS]

    QUESTION 1

    A 6 month Treasury bill is priced at 98.04, a 12 month treasury


    bill is priced at 95.18 and a Treasury bond with a remaining
    maturity of 18 months has a par yield of 5.96%. Compute the 18
    month Treasury spot rate?

    QUESTION 2

    A 4% coupon bond with a yield to maturity of 4% has a two year


    maturity. Details iof the spot rates are as follows

    MATURITY SPOT RATES

    6 MONTHS 5%

    12 MONTHS 6%

    18 MONTHS 8%

    Compute the the two year spot rates?

    QUESTION 3

    Details of spot and forward rates are as follows;

    PERIOD FORWARD RATE

    0-6 months 5%

    6-12 months 6%

    12-18 months 8%

    Which of the following is closest to the 18 months spot rate?


    QUESTION 4

    Details of spot and forward rates are as follows

    PERIOD FORWARD RATE

    0-6 MONTHS 4%

    6-12 MONTHS 7%

    12-18 MONTHS 5%

    Determine the value of a 6% coupon bond maturing in 18 months later?

    QUESTION 5

    Details of spot rates are as follows

    MATURITY SPOT RATE

    6 months 5%

    12 months 6%

    18 months 8%

    Ascertain the forward rate from 6 months time to 18 months time?

    You might also like