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Course 37309

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Sobitage omavahel  mõiste ja selle definitsioon:

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Mis on lineaarse tõenäosusmudeli peamine nõrkus?

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One year goverment bond yield of Germany is 1.0 % (the risk free rate) and the one year government bond of Alphaland is 6.4 %. 

What is the implied probability of default of Alphaland for the next 12 monhts?

Please omit the % sign in your answer.

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If the interest rate for two year LVL deposit is 9.1 % and for one year LVL deposit is 1.1 % then how much is the one year deposit rate for period starting one year after today?
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Ten year German government bond yield is 1.2 %. The yield for Betaland's government bond is 7.8%. These are annual yields. 

Assuming German government bond risk-free, what is the expected probability of default of Betaland for the next 10 years?

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Let us assume that the one year risk-free interest rate is 3%. Now imagine that the yield of corporate bond maturing one year from today is 14.7%. The current market price of corporate bond is 166.51 EUR.

Please calculate the probability of default of the corporate bond i.e. the likelyhood that the corporation will default in one year.

  Present your answer in percent without inserting percentage sign (%). 

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If the price of the call option is 1.8 and it enables us to sell the underlying asset at strike price 21.8 next Monday then what is the break-even level of this assets's market price of Monday?

Note: The option purchase starts generating profit if the market price is above the break even level.

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If the price of the put option is 3.1 and it enables us to sell the underlying asset at strike price 216 next Monday then what is the break-even level of this assets's market price of Monday?

Note: The option purchase starts generating profit if the market price is below the break even level.

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Lets assume the following two year bond (time to maturity: two years from today):

Face value 1000 EUR;

Fixed coupon yield 6.1% (coupon is paid once a year at the end of each year);

Current discount rate is 3.2%.

Calculate and present the current market price of the bond (in EUR) and present answer in numerical format (without adding the EUR).

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Let us assume the following deposit rates 

Maturity%
1 year deposit12.5
2 year deposit4.4

Please calculate the expected forward interest rate for deposit starting at the end of first year and lasting one year (one year forward rate). 

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