1 the spot bp exchange rate is 05025 and the one-year, Ask an Expert

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1. The spot BP/$ exchange rate is 0.5025/$, and the one-year forward rate is BP 0.5048/$. If the annual interest rate on dollar CDs is 6%, what would you expect the annual interest to be on BP CDs?

2. Assuming semiannual compounding, a 15-year zero coupon bond with a par value of $1,000 and a required return of 10.8% would be priced at _________.

A. $206.43

B. $214.74

C. $902.53

D. $948.77

3. Compute the modified duration D(.05,2) of a perpetuity which pays $135 each six months, with the next payment in exactly six months.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92881004

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