ps4 - FIN300 Introduction to Managerial Finance Professor H...

This preview shows pages 1–2. Sign up to view the full content.

FIN300 Introduction to Managerial Finance Professor H. Wang Problem Set #4 Due: Monday, March 1, 2010 Please make sure to write clearly the name of each member in the group. Please turn in your solutions at the beginning of the lecture on the due date. Late submissions or submissions by groups larger than four students will not be accepted. 1. Consider a 10-year bond with a face value of \$1000 that has a coupon rate of 5.5%, with semiannual payments. a.) What is the coupon payment for this bond? b.) Draw the cash flows for the bond on a timeline. 2. The current zero-coupon yield curve for risk-free bonds is as follows: Maturity 1 2 3 4 5 YTM 5.00% 5.50% 5.75% 5.95% 6.05% a.) What is the price per \$100 face value of a two-year, zero-coupon, risk- free bond? b.) What is the price per \$100 face value of a four-year, zero-coupon, risk- free bond? c.) What is the risk-free interest rate for a five-year maturity? 3.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

ps4 - FIN300 Introduction to Managerial Finance Professor H...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online