Government Bond

Q.1: If a government bond is expected to mature in two years and has a current price of $950, what is the bond’s YTM if it has a par value of $1,000 and a promised coupon rate of 10 percent? Suppose this bond is sold one year after purchase for a price of $970. What would this investor’s holding period yield be? [1.5 Marks]

Q2. A 20-year U.S. Treasury bond with a par value of $1,000 is currently selling for $1,025 from various securities dealers. The bond carries a 6 percent coupon rate with payments made annually. If purchased today and held to maturity, what is its expected yield to maturity? [1.5 Marks]

Don't use plagiarized sources. Get Your Custom Essay on

Government Bond

Just from $13/Page

Order Essay

Q 3. How can the discipline of the marketplace be used as a guide for making liquidity management decisions? Explain.[2 Marks- 500 words minimum]

Q4.Briefly discuss the following: Liability Management Highly Rate-Sensitive Volatile:

Note: You are required to reply to at least two peer responses to this week’s discussion question. Your replies need to be substantial and constructive in nature

Peer responses:

Liabilities are highly rate sensitive as most liabilities are linked to floating rates
If interest rates rise, liabilities payables also rise
Interest on Current Liabilities increase with rise in interest rates
Interest payable on term loans, cash credit, overdraft, dropline overdraft are all floating in nature; hence, payables increase with increasing rates
Payables on Quasi Equity, ie, Unsecured Loans is always linked to variable rates

2- Liability Management

before making decisions about how to deploy the recent inflow of funds. It is risky to make asset decisions without proper analysis of liability considerations. Instead, you should focus on balance sheet management by balancing yield expectations with share and deposit pricing decisions

Top Quality and Well-Researched Papers

Our writers are encouraged to read and research widely to have rich information before writing clients’ papers. Therefore, be it high school or PhD level paper, it will always be a well-researched work handled by experts.

Professional and Experienced Academic Writers

For one to become part of our team, thorough interview and vetting is undertaken to make sure their academic level and experience are beyond reproach, hence enabling us give our clients top quality work.

Free Unlimited Revisions

Once you have received your paper and feel that some issues have been missed, just request for revision and it will be done. In addition, you can present your work to the tutor and he/she asks for improvement/changes, we are always ready to assist.

Prompt Delivery and 100% Money-Back-Guarantee

All our papers are sent to the clients before the deadline to allow them time to review the work before presenting to the tutor. If for some reason we feel our writers cannot meet the deadline, we will contact you to ask for more time. If this is not possible, then the paid amount will be refunded.

Original & Confidential

Our writers have been trained to ensure work produced is free of plagiarism. Software to check originality are also applied. Our clients’ information is highly guarded from third parties to ensure confidentiality is maintained.

24/7 Customer Support

Our support team is available 24 hours, 7 days a week. You can reach the team via live chat, email or phone call. You can always get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Type of paper needed:

Pages:

Academic level:

Total price:

$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have had a hectic day, and still need to complete your assignment, yet it is late at night. No need to panic. Place your order with us, retire to bed, and once you wake up, the paper will be ready.

Essays

Essay Writing Service

It does not matter the urgency of your paper, or the academic level, our team is ready to help you 24/7. Just contact us and all your academic needs will be sorted.

Admissions

Admission Essays & Business Writing Help

A student is often required to write an admission letter requesting to be admitted in a certain institution. For you to be gain that admission in your dream institution, you must write a convincing letter. You can depend on our team for the best admission letters.

Reviews

Editing Support

Academic writing is not just about getting information and throwing it all over. Our team will ensure you have a polished paper that is coherent and has a good flow of information. We also ensure the paper follows the correct formatting styles like APA, Harvard, MLA, Chicago/Turabian.

Reviews

Revision Support

If our writers write a paper but you are not satisfied in one way or another, you can always ask for revision. This is totally free. Our writers and editors will revise your paper untill you are be totally satisfied. We as well offer revision for papers not done by our writers at a small fee.