Using the table below showing discount factors, compute the yield to maturity on a bond equivalent basis of a bond paying coupons semiannually at the semiannually compounded rate of 3.5%. Assume the bond matures in exactly two years. Hint: Using solver or an associated function is a good step to complete this problem.

Compared to Treasury Note forward contracts, Treasury Note futures contracts are more likey to :

Which of the following is least likely to be a basic function of repo markets in financial markets?

At the beginning of a reset period, the variable reference rate set in advanced and paid in arrears for a plain vanilla fixed-for-floating swap was set at 1.5%. The notional principal is $1,000,000. Assuming the period had 90 days in a 360 day year, the interest payment on the floating leg is:

At expiration of a futures contract, the price of the CTD bond is 112.00 and its conversion factor is 0.85. What is the futures price? Assume that there are no transaction costs, so that arbitrage arguments hold perfectly.

Compared to a floater, an inverse floater

The magnitude of conversion factors for deliverable bonds in a 10-Year Treasury Note Futures contract is affected by:

Assume the US Treasury is auctioning $1200 of bonds and receives the following bids: Bank A: $800 at 5.00% Bank B: $1100 at 4.75% Bank C: $900 at 4.50% Noncompetitive: $200 at 4% Which yield clears the auction?

Which of the following is not a theory of the term structure of the yield curve?

Using the weighted cash-flow approach to computing duration (Macaulay Duration), Which of the following is the closest to the duration of a 3-year bond with semiannual coupon payments of 5.5% and a yield to maturity of 6%.