we’re all attention whores, baby, some are just more honest with themselves about it.
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Have you set up a coffee date with co-worker B’s 58 year old mom???
OHFERFLUFFSAKE, the popcorn gif won’t pop up!!! GRRRRRRR!!! 
Nope!
Can you call them up and ask?
I thought you were one of those people who used curb-side pickup at places like that?
And couldn’t you have just wandered into a Walgreens or supermarket for something like that? Lines would probably be a lot shorter. Especially on the weekend.
The last 3 Target experiences reinforce that I should return to curbside pick up only.
Related annoyance:
The toothpaste was cheaper at Kroger.
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Every time you merge cells in Excel a kitten dies.
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My Sony earbuds will only charge with the cord they came with plugged into my iphone block.
On a positive note, they work really well with my work laptop. The Sony headphones I bought to use with my work laptop only work for one meeting now, and then they stop working. I have a day of meetings today so was hoping to use the earbuds.
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Stoopid thunder woke me up in the wee hours of the morning.
And the storm knocked out my modem for an hour!!! 
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OK, I’ve submitted my assignment. So here’s the outline of the question.
Yield curve
Maturity in years/spot rate
1/3%
2/3.5%
3/3.75%
4/3.95%
Four $1000 bonds, maturing in 1,2,3,4 years. You sell each of these at end of 1 year. which one gave you the most profit?
My answer: They’re the same picture! But likely I’m gonna get a paddlin for posting this here. Which is OK, I already know I’m an idiot.
Seems like there’s a lot of key information missing.
One key item (that seems like answer is surely yes, or complete setup makes no sense): the $1000 bonds are 0-coupon bonds?
Another key item that is not so obvious: what is the yield curve when you sell the bonds. Because except for the $1000 bond, that determines the selling price. Presumably you think is the curve “expected” from the initial yield curve. In the real world, that’s an awful assumption.
I guess the issue of whether these are US dollars or CDN dollars isn’t key.
Also key, where I think I know how you must be interpreting it but it isn’t stated in what you wrote: is it asking the most profit in dollars or the most profit as a % of the amount invested?
Not obvious to me what the “same picture” is.
Well, 
, all you do is calculate the PV of a bunch of zero coupon bonds at time 0, then figure out the PV of each at time 1, but I am assuming the spot curve is unchanged. I don’t think the profit will be the same for all. 
Yield curve remains unchanged over time. Bonds are zero coupon.
I think the fact that the way the yield curve remains unchanged and perhpas the structure of the yields, means that all four choices are equivalent.
1 year bond at 3% end of year 1.
Get the 1 year spot rate for year 2 using the 1 year and 2 year rates. calc the fv of a 2 year bond after 2 years, discount using the 2nd year-1 year spot rate to get us to EOY 1 - and we get the same number as 1 year bond at 3%.
Proceed another couple times, they all come out as a PV at EOY1 of 10300.
I am not sure this is consistent with “the yield curve remains the same”. I would describe setting the 1 year forward rate 1 year tenor based on the current 1 year and 2 year spots as “developing according to implied forwards”. Yield curve remains the same to me means:
1 year spot at time 0 = 3%
1 year spot at time 1 = 3%
etc.
So if it is implied by the question that you buy all these 0’s at time = 0, then prices at time 0 are
(1- 0.03)^1
(1 - 0.035)^2
…
The prices at time 1 would be
1
(1 -0.03)^1
…
Profit would be price time 1 - price time 0.
Doesn’t seem like all are the same profit.
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You referred to $1000 bonds. From that PV, the denomination is apparently 10,000.
Still the way most people describe zero-coupon bonds, a bond of X matures for X, not is purchased for X. If you are referring to the denomination of the bonds, not the price of the bonds, the prices are all different, the PVs at time 1 are all different, and the profits (value at time 1 minus purchase price) are all different.
And if the yield curve is indeed unchanged, so that all the spot rates remain unchanged (e.g. 2-year spot rate 1 year later is still 3.5%), the both profits and profit / investment are different.
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Oh, I don’t think that’s what they’re saying. if that’s what they’re saying, then yeah, I’m wrong.
My understanding was,
1 year spot rate 3%
2 year spot rate, 3.5%.
So the 1 year spot rate in second year has to be:
1.03X(1+i)=1.035^2
i.e. we weren’t give the 1 year spot rate one year in the future, and we don’t assume taht spot rate is the same as the one year spot rate starting at time 0.
Maybe that’s where the difficulty is.
The course is both a bit simplistic, plus sometimes is a bit off because it glosses over a lot of stuff.
Plus I hate bonds.
Yeah, to know a future price they have to be specific and tell you how future rates develop, because “the yield curve remains the same” and “yields develop according to implied forwards” are different except in trivial circumstances (flat yield curve).
Yes, that is likely what they meant. Even if that is what they meant, the profit (in dollars) is different in all four, because the amount invested for the zero-coupon bond is different in all four and the profit is 3% of the amount invested in all 4.