A semi-annual payment bond pays interest on May 15 and November 15. If the cóupon is the accrued interest for settlement day on June 27? Assume a day convention of 30/360 and a par value of $100.
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- 7. Suppose a bond is purchased with a settlement date of October 15 and the next coupon payment is on December 1. The par amount purchased on the bond is $100,000, and its annual coupon rate is 4% paid semiannually. (1) What is the accrued interest using the 30/360-day count convention? (2) What is the accrued interest using the actual/actual day count convention?7. Suppose a bond is purchased with a settlement date of October 15 and the next coupon payment is on December 1. The par amount purchased on the bond is $100,000, and its annual coupon rate is 4% paid semiannually. (1) What is the accrued interest using the 30/360-day count convention? (2 points) (2) What is the accrued interest using the actual/actual day count convention? (2 points)7. A company has issued a $1,000,000 floating rate note with a coupon rate equal to the three- month LIBOR+65bps. Interest payments are made quarterly on 31 March, 30 June, 30 september, and 31 December. On 31 March and 30 June, the three month libor is 1.55% and 1.35% respectively. What would the coupon rate for the interest rate for the interest payment on 30 June? What would be the dollar amount of the June 30 Payment?
- You decide that you will issue floating rate bonds on 15 May 2021. The bonds have a face value of $1,000 anually semi-annual coupon payments at a rate based on BBSW plus a margin of 1.6%. The day fraction count to be Actual/365. If the BBSW is 3.1% on 15 May 2021 and 4.4% on 15 November 2021, how much interest will be payable on 15 November 2021?A $1,000 par value bond with a fixed 10% rate of interest pays coupons semiannually. What amount will the bondholder receive on the bond’s maturity date?A bond promises to pay the bondholder equal payments of P6,000 in six-month intervals for 30 years. If the face amount is P450,000, what is the fair price of the bond? Assume that the market rate is 2% compounded annually.
- A 4% semi-annual coupon payment, bond matures on 15 February 2024. Coupon payments are made on 15 August and 15 February. The yield-to-maturity on this bond is 5%. What is the full price, flat price, and accrued interest for settlement day on 2/11/2016? Assume a day count convention of 30/360 and a par value of 100$.. On December 6, the interest rate on a 1-year T-note was 4.73% and for the 2-year T-note was 4.34%. Assume there is a 0.1% (0.001 in decimals) liquidity premium on the 2-year rate vs the 1-year rate. What is the 1-year rate the markets expected to see in 1-year (i.e., 12/6/23)?A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year. The maturity date is April 15th. The rate of simple interest is 5.75%. What is the maturity value of the note?
- A bond is priced at $1,100, has 10 years remaining until maturity, and has a 10% coupon, paid semiannually. What is the amount of the next interest payment?what is the effective interest rate on a 3-month noninterest-bearing note with a stated value of 13.7% and a maturity value of $220,000?Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is the promise yield to maturity?