$1.3069. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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- Today is January 1. The forward price for contracts maturing on April 1 is $104.4 and on October 1 is $111.6. On April 1, the price of a zero-coupon bond maturing on October 1 is $0.975. Assuming that the underlying interest rate is a continuously compounded interest rate and will not change, the amount of profit that you can make on October 1 by trading one contract each of the near and distant maturity forwards and other securities is: [round to two decimal places]Calculate the invoice price for a T-Bond futures contract with quoted price of 97-16 where the conversion factor of the cheapest- to-deliver bond is .9900 and the accrued interest on the settlement date will be $800.Suppose that bond ABC is the underlying asset for a futures contract with settlement six months from now. You know the following about bond ABC and the futures contract: (1) In the cash market ABC Is selling for $80 (par value is $100); (2) ABC pays $8 in coupon interest per year in two semiannual payments of $4, and the next semiannual payment is due exactly six months from now; and (3) the current six-month interest rate at which funds can be loaned or borrowed is 6% A. What is the theoretical futures price? B. What action would you take if the futures price is $83?
- The June CBOT Treasury bond futures contract has a quoted price of 95'7. If annual interest rates go up by 1.75 percentage point, what is the gain or loss on the futures contract? Round to the nearest whole dollar.Suppose the December CBOT Treasury bond futures contract has a quoted price of 80-07. What is the implied annual interest rate inherent in the futures contract? Assume this is a a 20 year bond with semi-annual interest payments. The face value of the bond is $1000, and the semi-annual coupon payments are $30.(a) 6.86%(b) 7.22%(c) 7.60%(d) 8.00%(e) 8.40%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
- Suppose that for a Treasury bond futures contract, the cheapest-to-deliver bond is a 4% coupon bond with a quoted price of 114.50 and conversion factor of 1.3150. The futures contract matures in six months and the next coupon will be paid in six months. There is no accrued interest. The six-month risk-free interest rate is 5%. What is the value of the Treasury bond futures contract?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 8.5%, and the bond pays coupons semiannually. The bond is selling at a bond-equivalent yield to maturity of 10.0%. Use Spreadsheet 16.2. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified durationYou find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Rate ?? 5.324 6.173 Maturity Mo/Yr May 29 a. Asked price b. Bid price May 34 May 44 Bid Asked 103.5488 103.5366 104.4978 104.6435 ?? Chg +.3041 +.4317 ?? +.5431 Ask Yld 6.039 ?? 4.071 a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars? (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 .0538, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.75 percent, and the bond has a yield to maturity of 5.08 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified durationCalculating and interpreting current yield and yield to maturity Find the current yield of a 10%, 25-year bond that's currently priced in the market at $1,250. Now, use a financial calculator to find the yield to maturity on this bond (use annual compounding). What's the current yield and yield to maturity on this bond if it trades at $1,000? If it's priced at $750? The par value of the bond is $1,000. Round your answers to two decimal places. Do not round intermediate calculations. Quote Current Yield Yield to Maturity 10%, 25 yr., $1,250 % % 10%, 25 yr., $1,000 % % 10%, 25 yr., $750 % %A Treasury bond futures contract has a settlement price of 89'08. What is the implied annual yield?