3 4 5 A. If today is March 15, 2024, what is the value of a bond with a face value of 100, an annual coupon rate of of 4% paying coupon annually maturing on March 15, 2027 with a yield to maturity of 5.8%. 6 7 Time 8 Face Value 9 Coupon rate 10 Coupon 11 Yield to Maturiy 12 Settlement Date 13 Maturity Date 14 Bond Price 15 Bond Price 16 3/15/2024 3/15/2025 3/15/2026 3/15/2027 $100 4.00% 55 $4 $4 $4 5.80% 3/15/2024 3/15/2027 -$95.17

3 4 5 A. If today is March 15, 2024, what is the value of a bond with a face value of 100, an annual coupon rate of of 4% paying coupon annually maturing on March 15, 2027 with a yield to maturity of 5.8%. 6 7 Time 8 Face Value 9 Coupon rate 10 Coupon 11 Yield to Maturiy 12 Settlement Date 13 Maturity Date 14 Bond Price 15 Bond Price 16 3/15/2024 3/15/2025 3/15/2026 3/15/2027 $100 4.00% 55 $4 $4 $4 5.80% 3/15/2024 3/15/2027 -$95.17

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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L You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.324 6.173 Maturity Month/Year May 30 May 33 May 39 Bid Asked 103.4638 103.5366 104.4978 104.6435 ?? ?? Change Ask Yield +.3041 +.4317 +.5431 In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. X Answer is complete but not entirely correct. Yield to maturity 8.28 % 6.039 ?? 4.071
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.202 6.158 Maturity Month/Year May 36 May 39 May 45 Bid 103.4599 104.4939 ?? Asked 103.5327 104.6396 ?? Change Ask Yield +.3287 5.979 +.4281 +.5392 ?? 4.011 In the above table, find the Treasury bond that matures in May 2039. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Yield to maturity %
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.152 6.153 Maturity Month/Year May 35 May 38 May 44 Bid 103.4586 104.4926 ?? Yield to maturity Asked 103.5314 % 104.6383 ?? Change Ask Yield +.3274 5.959 ?? 3.991 In the above table, find the Treasury bond that matures in May 2038. What is your yield to maturity if you buy this bond? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. +.4269 +.5379
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.252 6.163 Maturity Month/Year May 36 May 41 May 51 a. Asked price b. Bid price Bid Asked 103.5462 103.5340 104.4952 104.6409 ?? ?? Change Ask Yield +.3015 5.999 +.4293 ?? +.5405 4.031 a. In the above table, find the Treasury bond that matures in May 2051. What is the asked price of this bond in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the bid-ask spread for this bond is .0654, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
25. Consider a bond with a settlement date of February 22, 2022, and a maturity date of March 15, 2030. The coupon rate is 5.5%. (LO 10-1) a. If the yield to maturity of the bond is 5.34% (bond equivalent yield, semiannual compounding), what is the list price of the bond on the settlement date? b. What is the accrued interest on the bond? c. What is the invoice price of the bond?
Q1. Consider the following par bond (ie coupon rate=yield): Year 3 5 7 10Yld 0.83% 1.22% 1.45% 1.54% Q1a. based on linear interpolation, what is the expected yield for a 10 year note ONE year later, assuming yield curve shape stays the same? Q1b. how much should the 10y note be priced 1 year later (as a 9 year note)?
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.774 6.218 Maturity Month/Year May 34 May 37 May 43 Bid Asked 103.4755 103.5483 104.5095 104.6552 ?? ?? Yield to maturity In the above table, find the Treasury bond that matures in May 2037. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Change Ask Yield +.3158 6.219 ?? +.4425 +.5548 4.251 %
What is the market price for a bond which has a $1.976m face value, a 2.75% coupon, a 15 May 2045 maturity, that is trading at a yield to maturity of 2.01% p.a. when it is valued on 1 February 2024? a $2,239,823.728 b $2,239,954.08 c $2,239,815.76 d $2,244,558.16
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.774 6.218 Maturity Month/Year May 33 May 36 May 42 Bid Asked 103.5483 103.4755 104.5095 104.6552 ?? ?? Yield to maturity In the above table, find the Treasury bond that matures in May 2036. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Change Ask Yield +.3158 6.219 ?? +.4425 +.5548 4.251 % K
To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a $1,000 par value and pay semiannual coupons. Rate ?? 3.850 4.125 Maturity Month/Year May 29 May 32 May 38 Coupon rate Bid 102.725 103.168 ?? Asked 102.915 103.823 ?? % Change Ask Yield +.3204 +.4513 +.6821 In the above table, find the Treasury bond that matures in May 2029. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 2.18 ?? 3.87
Consider a risk-free zero-coupon bond with face value $1000, 20 years to maturity. If the yield to maturity (YTM) is 6%, the price at which this bond will trade is closest to: A. $167.44 B. $312 C. $214.55 D. $174
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.724 6.213 Maturity Month/Year May 36 May 41 May 51 Bid 103.5592 104.5082 ?? Asked 103.6474 104.6539 ?? Change +.3145 % +.4413 +.5535 Ask Yield 2.529 ?? 4.231 In the above table, find the Treasury bond that matures in May 2036. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate c

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