a)P(Y=5)=P(Y<=5)-P(Y=5)=4/5-3/5=1/5
b)P(Y>3) =1-P(Y<=3)=1-3/5=2/5
c)P(1.4<Y<6)=P(Y<=5)-P(Y<3)=4/5-1/5=3/5
d)P(Y<=5|Y>=2)=P(2<=Y<=5)/P(Y>=2)=(4/5-1/5)/(1-1/5)=(3/5)/(4/5)=3/4
An investment firm offers its customers municipal bonds that mature after varying numbers of years. Given...
Please solve, show work, and give detail explanation 1. A firm has 9.2% coupon bonds on the market with nine years to maturity. The bonds make semi-annual payments and currently sell for 106.8 percent of par. What is the yield-to- maturity (YTM) on these bonds? 2. An investment offers a 10.5 percent total return over the coming year. Sam thinks that the total real return on this investment will be only 4.5 percent. What does Sam believe the inflation rate...
You have $1,000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (Ja sequence of three one year bonds: (i) a three year bond; or (i) a two-year bond followed by a one-year bond. The current yield curve tells you that the one year, two year, and three year yields to maturity are 2.5 percent. 4 percent, and 2.7 percent respectively. You expect that one-year interest rates will be 5 percent...
You have $1,000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (i) a sequence of three one-year bonds; (ii) a three-year bond; or (iii) a two-year bond followed by a one-year bond. The current yield curve tells you that the one-year, two-year, and three-year yields to maturity are 5.2 percent, 4 percent, and 5.2 percent respectively. You expect that one-year interest rates will be 4 percent next year and 5...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $60 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $55 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2018 and the first month of 2019. The only securities held by Amalgamated at October 1 were $50 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1 at face value and held in Amalgamated's trading portfolio. The...
5. Tommy is going to receive a cash flow of 5100 monthly for 15 years. Timmy w poing to receive a cash flow of $100 monthly forever. If the discount is 125. how cho Jimmy's cash flow worth as of today? A) $1.294.36 B) $1.323.57 C) $1,545.4) D) $1,667.83 D 57.493 83 6. You have just obtained the loan in the mount of $10.000 You make monthly payment of 53226719 for 3 years. What is the quoted interest rate on...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2018 and the first month of 2019. The only securities held by Amalgamated at October 1 were $45 million of 10% bonds of Kansas Abstractors, Inc. purchased on May 1 at face value and held in Amalgamated's trading portfolio. The...