- #1
anonymousk
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This assignment is translated from another language, so some words be not be completely correct
Homework Statement
(Annual market rate might be yield to maturity?)
Face value = 1000
Obligation----Condition----Payment profile----Maturity------Annual Coupon Rate-----Annual market rate
------1--------------A-----------Serial loan--------5 years---------------0%---------------------------6%
------1--------------B-----------Serial loan--------5 years---------------0%---------------------------14%------2--------------A-----------Serial loan--------5 years---------------10%--------------------------6%
------2--------------B-----------Serial loan--------5 years---------------10%--------------------------14%------3--------------A-----------Serial loan-------10 years---------------10%--------------------------6%
------3--------------B-----------Serial loan-------10 years---------------10%--------------------------14%I have to calculate the rate/exchange rate for all the obligations, and I think I've got it right for obligation 2 and 3.
I got obligations to:
2A: 1105,02
2B: 910,46
3A: 1175,99
3B: 863,31
Do I do the same for obligation 1? It says the coupon rate is zero, might it be a zero-coupon bond then?? It also says serial loan, and I thought zero-coupon bonds were standing/bullet loans only.
Since it says serial loan, do I calculate obligation 1 like i did with 2 and 3, or do i treat it as a zero coupon bond?
Homework Statement
(Annual market rate might be yield to maturity?)
Face value = 1000
Obligation----Condition----Payment profile----Maturity------Annual Coupon Rate-----Annual market rate
------1--------------A-----------Serial loan--------5 years---------------0%---------------------------6%
------1--------------B-----------Serial loan--------5 years---------------0%---------------------------14%------2--------------A-----------Serial loan--------5 years---------------10%--------------------------6%
------2--------------B-----------Serial loan--------5 years---------------10%--------------------------14%------3--------------A-----------Serial loan-------10 years---------------10%--------------------------6%
------3--------------B-----------Serial loan-------10 years---------------10%--------------------------14%I have to calculate the rate/exchange rate for all the obligations, and I think I've got it right for obligation 2 and 3.
I got obligations to:
2A: 1105,02
2B: 910,46
3A: 1175,99
3B: 863,31
Do I do the same for obligation 1? It says the coupon rate is zero, might it be a zero-coupon bond then?? It also says serial loan, and I thought zero-coupon bonds were standing/bullet loans only.
Since it says serial loan, do I calculate obligation 1 like i did with 2 and 3, or do i treat it as a zero coupon bond?