Question 1: The following graph shows the real US yield curve on January 12, 2021, and February 26 , 2020. Given the latest yield curve of January 12, 2021, what is your predictron of the future interest rates in the US? (%) Yield curve on Jan. 12, 2021 on Feb. 26, 2020 Yield currve 2.00 1.80 1.60 1.40 1.20 1.00 0.80 O.60 OL40 0.20 1 Mo 2 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10Yr 20 Yr 30 Yr
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- Use the following information about today's U.S. Treasury STRIP yield curve to answer questions 19-21. One year spot rate Two year spot rate Three year spot rate 1.95 % p.a. 2.30% p.a. 2.45% p.a. 19. What is the market consensus expectation of one year spot rates for delivery one year from now? a. 1.95% p.a. b. 2.65% p.a. c. 2.70% p.a. d. 2.30% p.a. e. 2.75% p.a. 20. What is the market consensus expectation of one year spot rates for delivery two years from now? a. 1.95% p.a. b. 2.65% p.a. c. 2.70% p.a. d. 2.30% p.a. e. 2.75% p.a. 21. How is the one year spot rate expected to change over the next year? a. An increase of 8 basis points. b. An increase of 50 basis points. c. A decrease of 5 basis points. d. An increase of 70 basis points. e. An increase of 35 basis points.The graph (attached) depicts yield curves for 5 November 2021, 5 November, 2022, and 5 November, 2019. The yield rates are given for each of those in the graph (attached). a) As of 5 November 2021, what is the one-month interest rate expected by market participants in 5 January, 2022? Are they expecting a change in monetary policy within that time frame?The graph depicts yield curves for 5 November 2021, 5 November, 2022, and 5 November, 2019. The yield rates are given for each of those in the graph (attached). a) b) As of today, what is the one-month interest rate expected by financial market participants for 5 January, 2022? Does it appear they are expecting changes in monetary policy between now and then?
- The graph (attached) depicts yield curves for 5 November 2021, 5 November, 2022, and 5 November, 2019. The yield rates are given for each of those in the graph. a) As of today, what is the one-year interest rate expected by financial market participants for November 5, 2023? Does it appear that financial market participants are currently expecting changes in monetary policy within the next two years?Assume the following information: Predicted Value of Realized Value of Period New Zealand Dollar New Zealand Dollar 1 $.52 $.50 2 .54 .60 3 .44 .40 4 .51 .50 Given this information, What is absolute forecast error as a percentage of the the second period? a. 6.5% b. 6% c. 26% d. 10% e. 1.5%Assume the following information: Predicted Value of Realized Value of Period New Zealand Dollar New Zealand Dollar 1 $.52 $.50 2 .54 .60 3 .44 .42 4 .51 .55 Given this information, the mean absolute forecast error as a percentage of the realized value is about: A. 2.87%. B. 6.50%. C. 26.0%. D. none is correct E. 6.00%.
- What will be forward rate if the current spot rate is €1= $1.40 and the risk-free rate in America and Europe is 5% and 4.30% respectively. A. $1.3907 B. $1.4520 C. $2.2220 D. $1.6253Question 1 The following are annual rates of return for T-bills in Ghana and Share on the Ghana Stock exchange Year T-bill Shares on Ghana Stock Exchange 2016 0.063 0.150 2017 0.081 0.043 2018 0.076 0.374 2019 0.090 0.192 2020 0.085 0.106 a. Compute the arithmetic mean rate of return and standard deviation of rates of return for the two series. b. Discuss these two alternative investments in terms of their arithmetic average rates of return, their absolute risk, and their relative risk. Compute the geometric mean rate of return for each of these investments. Compare the arithmetic mean return and geometric mean return for each investment and discuss the difference between mean returns as related to the standard deviation of each series.Calculate the price for a 8% 21st of October 2034 CGB when the yield is 5.974% on the 17th April 2021?
- You took a long position on EUR when the prevailing market rate was EUR/USD: 1.3223-1.3227. After six months, you want to square your net FX position to take profits. Which of the following scenarios will yield you maximum profits? Scenario A: at EUR/USD 1.3245 – 1.3253 Scenario B: at EUR/USD 1.3230 – 1.3255 Scenario C: at EUR/USD 1.3231 – 1.3235 Scenario D: at EUR/USD 1.3247 – 1.3252 You took a short position on GBP when the prevailing market rate was GBP/USD: 1.3223-1.3227. After six months, you want to square your net FX position when the prevailing market rate is GBP/USD 1.3218-1.3221. How may pips did you earn? 5 pips 9 pips 2 pips .0009 pips If you want to square your long GBP position, at what rate are you going to sell GBP to maximize profits given GBP/USD quotes from three counterparties? BDO: 1.35-45 BPI: 1.40-55 SECB: 1.50-1.65 1.35 1.50 1.65 1.45 Given “RTB 5-12”, which of the following statements is correct? This is a 5-yr RTB issued in 2012 This…Assume that you are given the following historical returns for the Market and Security J. Also assume that the expected risk-free rate for the coming year is 4.0 percent, while the expected market risk premium is 15.0 percent. Given this information, determine the required rate of return for Security J for the coming year, using CAPM. Year 1 2 O21.20% 3 4 5 6 O22.34% O 23.49% O24.63% O24.10% Market 10.00% 12.00% 16.00% 14.00% 12.00% 10.00% Security J 12.00% 14.00% 18.00% 22.00% 18.00% 14.00%In 2020, price index is 135.4 and in 2021 price index is 145.2.What is the inflation rate? Select one: a. 107.24% b. -6.75% c. 7.24% d. 9.80%