Consider a zero-coupon bond with a face value of $60 and five years to maturity. Compute its current fair value at t=0. (only one possible answer) $55.00 $ 57.09 $58.09 $60.00 $100.00 b. Consider a zero-coupon bond with a face value of $60 and five years to maturity. Compute its DV01 at t=0. (only one possible answer)
Consider a zero-coupon bond with a face value of $60 and five years to maturity. Compute its current fair value at t=0. (only one possible answer) $55.00 $ 57.09 $58.09 $60.00 $100.00 b. Consider a zero-coupon bond with a face value of $60 and five years to maturity. Compute its DV01 at t=0. (only one possible answer)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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a. Consider a zero-coupon bond with a face value of $60 and five years to maturity. Compute its current fair value at t=0.
(only one possible answer)
- $55.00
- $ 57.09
- $58.09
- $60.00
- $100.00
b. Consider a zero-coupon bond with a face value of $60 and five years to maturity. Compute its DV01 at t=0.
(only one possible answer)
- $0.0098
- $0.0500
- $0.0283
- $0.0471
- $0.6000
Transcribed Image Text:Maturity in
years
1
23456789
9
10
Zero-coupon rate
0.60%
0.70%
0.80%
0.90%
1.00%
1.10%
1.20%
1.30%
1.40%
1.50%
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