A bond with a face value of $500000 and a quoted price of 102.125 has a selling price of

D & R A1 8 - 2 Question 8. Cheapest-to-Deliver Bond Today is July 1. You hold a November Treasury bond futures contract with a price of 92:15 (i.e., 92 plus [15/32]), with a delivery date of November 15 in the same year. You have identified the two bonds below that could be used for delivery against the futures contract:     Bond A Bond B Maturity 26.5 years 31 years Coupon rate 5% 8.5% Asking price 93:2 144:13 Coupon dates April 15, October 15 June 15, December 15 Callable? No No   Assume that the next year is not a leap year, and that the market repo rate is 5.50%. Identify the cheapest-to-deliver bond.

D & R A1 8 - 1 Question 8. Cheapest-to-Deliver Bond Today is July 1. You hold a November Treasury bond futures contract with a price of 92:15 (i.e., 92 plus [15/32]), with a delivery date of November 15 in the same year. You have identified the two bonds below that could be used for delivery against the futures contract:     Bond A Bond B Maturity 26.5 years 31 years Coupon rate 5% 8.5% Asking price 93:2 144:13 Coupon dates April 15, October 15 June 15, December 15 Callable? No No   Assume that the next year is not a leap year, and that the market repo rate is 5.50%. Find the conversion factors for Bond A and Bond B. Use the downloadable Excel spreadsheet on the Chicago Mercantile Exchange (CME) website: http://www.cmegroup.com/trading/interest-rates/us-treasury-futures-conversion-factor-lookup-tables.html.

Q 20 Calculate the price of a 5.7 percent coupon bond with 22 years left to maturity and a market interest rate of 6.5 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.) BOND PRICE_______   Is this a discount or premium bond?multiple choice premium bond discount bond

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estion list Question 7 K Refer to the bond listing table below to determine the daily high of the KFT.GX bond? Click the icon to view the bond listing from the table below. The daily high of the bond is % (Type an integer or a decimal.) Bond Listing from Wall Street Journal Online 1 2 3 4 5 6 7 8 9 Issuer Name CITIGROUP Symbol CHRY Coupon Maturity Rating Moody's/S&P/ Fitch Low 8.500% GENERAL GEHMX 5.500% May 2019 Jan 2020 A3/A/A+ Aa2/AA+/- - High 119.268 116.615 117.733 0.448 105.307 102.374 103.097 -0.028 Last Change ELECTRIC CAPITAL KRAFT FOODS KFT.GX 5.375% BANK OF BAC ICB 7.625% AMERICA ANHEUSER- BUD ID 5.375% BUSCH COMCAST CORP CMCD.GC 5.150% Mar 2020 Baa1/BBB+/BBB+ GOLDMAN GS.IAR 5.375% Mar 2020 A1/A/A+ Feb 2020 Baa2/BBB-/BBB- Jun 2019 A2/A/A+ Jan 2020 Baa2/BBB+/- - 106.081 101.999 103.411 0.687 113.172 111.839 112.847 0.283 104.693 104.061 104.526 -0.466 104.832 100.923 101.225 0.441 -0.592 99.750 95.636 96.642 SACHS GP BANK OF BAC IOP 4.500% Apr 2019 A2/A/A+ 101.750 99.288…