单选题 Given the following forward rates, the value of a 4 -year, 11 percent annual pay, $1000 par bond, is closest to:
【正确答案】 A
【答案解析】
Spot Rates:
Year 1=7%.
Year 2= [1.07×1.0815]1/2-1=7.57%.
Year3=[1.07×1.0815×1.103]1/3-1=8.48%.
Year 4=[1.07×1.0815×1.103×1.120]1/4-1=9.35%.
Bond Value:
N=I; FV=110; I/Y=7; CPT PV=
102.80
N=2; FV=110; I/Y=7.57; CPT PV=
95.06
N=3; FV=110; I/Y=8.48; CPT PV =
86.17
N=4; FV=1110; I/Y=9.35; CPT PV=
776.33
1060.36