Assume the spot price of gold is $745 per ounce and the 2-year forward price is $773. Annualized 1-year and 2-year forward interest rates are 5.0% and 5.2%, respectively. For a commodity-linked note to sell at par, what is the annual coupon?
A) $23.09
B) $24.09
C) $25.09
D) $26.09
D
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Attempting to exceed a sustainable capacity for an extended period of time can lead to an effect known as?
a. Economies of scale b. Distribution of effort c. Diseconomies of scale d. Overreaching scale
Technology is the application of science to convert an economy's resources to output.
Answer the following statement true (T) or false (F)
______ leaders lack self-control.
A. Intemperate B. Callous C. Incompetent D. Rigid
The following excerpt comes from an article titled "Securities Counselors Eyes Cutting Duration" in the February 17, 1992, issue of BondWeek, p. 5:
"Securities Counselors of Iowa will shorten the 5. 3 year duration on its $250 million fixed-income portfolio once it is convinced interest rates are moving up and the economy is improving … It will shorten by holding in cash equivalents the proceeds from the sale of an undetermined amount of 10-year Treasuries and adding a small amount of high-grade electric utility bonds that have short-maturities if their spreads widen out at least 100 basis points … The portfolio is currently allocated with 85% to Treasuries and 15% to agencies. It has not held corporate bonds since 1985, when it perceived as risky the onslaught of hostile corporate takeovers …" Why would Securities Counselors want to shorten duration if it believes that interest rates will rise?