Jaison Ltd issues $10 million in 5-year debentures that pay interest every 6 months at a coupon rate of 10% per annum. The required market rate of return is 12% per annum. What is the issue price of the debentures (rounded to the nearest dollar)?  Please provide all the calculations and do not just write the final answer. Also provide the journal entries for recording the debentures at the issue price.

A listed company has hired you to evaluate its recent issue of 2-year TIPS (Treasury Inflation-Protected Securities) with a semi-annual coupon payment clause and requires you to calculate the accrued principal and the coupon payment for the last 6 months. The information provided by the company is as follows: Par Value Coupon Rate 1000 1% First 6 months inflation 4% Second 6 months inflation 1% Third 6 months inflation 2% Fourth 6 months inflation 1% Note: Round the final values to two decimals.

Use the following information for questions 12-15: Under the terms of an interest rate swap, a financial institution has agreed to pay 10% per annum and to receive the 3-month LIBOR in return on a notional principal of $50 million with payments exchanged every 3 months. The swap has a remaining life of 14 months. The current rate being swapped for 3- month LIBOR is 11.8% per annum for all maturities. The 3-month LIBOR rate 1 month ago was 12% per annum. All rates are compounded quarterly.

Below are two T-Bill purchases: A T-Bill with a face value of $900,000 and current market price of $850,000. The maturity date is in 250 days. A T-bill has a face value of $600,000, a current market price of $570,000 and matures in 200 days.   Please calculate for both T-bill purchases based on the following: (a) What is the bank discount yield?  Calculate the holding period yield  Calculate the Effective Annual Yield  Calculate the Money Market Yield    (b)Explain why the Effective Annual Yield is greater than the Bank Discount Yield

The current price of a stock is $18. In 1 year, the price will be either $28 or $15. The annual risk-free rate is 3%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet Find the price of a call option on the stock that has a strike price is of $23 and that expires in 1 year. (Hint: Use daily compounding.) Assume 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. $

Suppose that on Monday, 7 July, you assume a long position in one December British pound futures contract at the futures price of $1.10/£. The initial margin is $2,000, and the maintenance margin is $1,500. The contract size is £125,000. Assume you do not withdraw excess money from your margin balance. All margin requirements are met with cash. The settlement prices for Monday and the next two days are shown in the following: Monday: $1.10 Tuesday: $1.15 Wednesday: $1.07 What is the balance in your margin account at the end of Wednesday? The correct answer is B. 1500 - Could you please explain why 1500 is the correct answer. a. $1,750 b. $1,500 c. $2,000 d. $-$1,000 e. $750

An investor buys a $10,000 par, 5% coupon (semiannual payments) TIPS security with two years to maturity. If inflation every six months over the two years is 1.2 percent, what is the final payment (principal and interest) the TIPS Investor will receive? Input your final answer using two decimal places. Do not round intermediate calculations.

A promissory note with a face value of $500,000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note? Can you please give me the solution for this accompanied by an explanation? Thank you so much!

On July 1, 2012 you purchase a $10,000 par T-Note that matures in 5 years. The coupon rate is 8% and the price quote is 98:6. The last coupon payment was May 1, 2012 and the next payment is November 1, 2012 (184 days total). The accrued interest is   A. $101.00.   B. $50.54.   C. $40.65.   D. $132.61.

You work at the interest rates swaps trading desk of an investment bank. Exactly three years ago you entered into an interest rate swap with a client with a notional of €200 million. The client is paying a fixed rate of 4% with semi-annual frequency and receiving the floating rate LIBOR with semi-annual frequency. The interest rate swap had a maturity of six years when it was initiated.Today is payment day and you have already exchanged the cash-flows for today. What is the value of this interest rate swap for you? Use the data in Table 1. Please show your calculations. Discuss your result. Rates are continuously compounded in image attachedb