A bond, with a par value of $1000 and is redeemable at par, pays semiannual coupons at a coupon rate 12%. The bond is priced to yield 8% compounded semiannually. The bond matures on 4/1/22 andis purchased with a settlement date of 9/22/19. Use the Semi - Theoretical Method to calculate the following as of the settlement date. Check to see if you are calculating the number of days between thelast book value and the settlement date correctly. Give your answers to two decimal places. (A) Flat price(full price) = 87.61 Incorrect: Your answer is incorrect. (B) Accrued Coupon (accrued interest) = (C) Market Price(clean price) =

Clean Price Calculation:The clean price of a bond is the present value of all future cash flows…

Answered: A bond, with a par value of $1000 and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

A bond has following characteristics: it was issued on 14.06.2018 and has 10 years to maturity. Coupon is paid semi-annually and carries interest rate of 3,2%. Market interest rate is currently 2,9% for similar issues. Investor purchased the bond on 19.11.2021. a. Calculate MacDuration b. Calculate ModDuration c. When market interest rates increase by 50 basis points, calculate price effect using results obtained in question (b)
A bond sells for $866.09 and has a coupon rate of 6.40 percent. If the bond has 14 years until maturity, what is the yield to maturity of the bond? Assume semiannual compounding. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
What is the market price of a bond if the face value is $1,000 and the yield to maturity is 6.7% ? The bond has a 6.15% coupon rate and matures in 12 years. The bond pays interest semiannually. Please express answer as $X.XX or XX.XX and use rounding guideline included in "Course Information" module. Do not round until the final result.
Find the duration of a bond with a settlement date of May 27, 2023, and maturity date November 15, 2034. The coupon rate of the bond is 7.5%, and the bond pays coupons semiannually. The bond is selling at a bond-equivalent yield to maturity of 5.5%. Use Spreadsheet 16.2. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration
Find the duration of a bond with settlement date June 9, 2018, and maturity date December 11, 2027. The coupon rate of the bond is 8%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 9%. (Do not round intermediate calculations. Round your answers to 4 decimal places.) What is the modified duration?
Required: Find the duration of a bond with settlement date May 29, 2018, and maturity date November 19, 2027. The coupon rate of the bond is 6%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 7%. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration
Find the duration of a bond with settlement date June 13, 2018, and maturity date December 19, 2027. The coupon rate of the bond is 6%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 7%. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
An investor buys an 8% annual payment bond with 3 years to maturity. The bond has a yield-to-maturity of 7%. Assume the par value is 100. The bond's modified duration is closest to: (Please provide the formula and steps to achieve both the macaulay duration and modified duration figure manully)
A bond is issued with a coupon of 5% paid annually, a maturity of 31 years, and a yield to maturity of 8%. What rate of return will be earned by an investor who purchases the bond for $659.51 and holds it for 1 year if the bond's yield to maturity at the end of the year is 9% ? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Rate of return %
Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.9%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ (Round to the nearest cent.)
There is a bond that has a quoted price of 940.023 and a par value of $1,000. The coupon rate is 7 percent and the bond matures in 13 years. The bond makes semiannual coupon payments a) Will the YTM be greater or less than the coupon rate? Explain your reason why b) Calculate the 7TM for the bond. Please be sure to show your calculations (if using a financial calculator, provide the input values used)
Find the duration of a bond with a settlement date of May 27, 2025, and maturity date November 15, 2036. The coupon rate of the bond is 8.0%, and the bond pays coupons semiannually. The bond is selling at a bond- equivalent yield to maturity of 8.0%. Use Spreadsheet 16.3 Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Macaulay duration Modified duration

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