Suppose you purchase a $1,000 TIPS on January 1, 2024. The bond carries a fixed coupon of 2 percent. Over the first two years, semiannual inflation is 2 percent, 4 percent, 1 percent, and 3 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. First 6 months Second 6 months Third 6 months Fourth 6 months Accrued Principal Coupon Payment
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- Suppose you purchase a $1,000 TIPS on January 1, 2024. The bond carries a fixed coupon of 1 percent. Over the first two years, semiannual inflation is 4 percent, 1 percent, 2 percent, and 3 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. First 6 months Second 6 months Third 6 months Fourth 6 months Accrued Coupon Principal PaymentSuppose you purchase a $1,000 TIPS on January 1, 2024. The bond carries a fixed coupon of 1 percent. Over the first two years, semiannual inflation is 4 percent, 1 percent, 2 percent, and 1 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Accrued Principal Coupon Payment First 6 months $ 30.00 $ 10.00 x Second 6 months $ 30.90 $ 10.30 X Third 6 months $ 10.61 $ 10.61 x Fourth 6 months S 42.86 $ 10.72 xSuppose you purchase a $1,000 TIPS on January 1, 2024. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual inflation is 2 percent, 4 percent, 1 percent, and 2 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. Accrued Principal First 6 months Second 6 months Third 6 months Fourth 6 months $ S $ $ Coupon Payment 1,040.00 $ 1,050.40 $ 1,060.90 € $ 1,092.73 $ 15.60 15.76 15.91 16.39
- Suppose you purchase a $1,000 TIPS on January 1, 2021. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual inflation is 4 percent, 1 percent, 1 percent, and 3 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment.Consider an investor who, on January 1, 2022, purchases a TIPS bond with an original principal of $111,000, an 10 percent annual (or 5 percent semiannual) coupon rate, and 15 years to maturity. a. If the semiannual inflation rate during the first six months is 0.5 percent, calculate the principal amount used to determine the first coupon payment and the first coupon payment (paid on June 30, 2022). b. From your answer to part a, calculate the inflation-adjusted principal at the beginning of the second six months. c. Suppose that the semiannual inflation rate for the second six-month period is 1.3 percent. Calculate the inflation-adjusted principal at the end of the second six months (on December 31, 2022) and the coupon payment to the investor for the second six-month period. (For all requirements, round your answers to 2 decimal places. (e.g., 32.16)) a. Principal amount Coupon payment b. Inflation-adjusted principal c. Inflation-adjusted principal at the end of the second six months…Suppose you deposit $2000 in an individual retirement account ( IRN) that pays interest at 6% compounded monthly for the first two years and 9% compounded monthly for the next three years. Determine the balance at end of five years. Q2 A bond has a maturity value draw of 1.125 % from present worth and is paying discrete compound interest at an effective annual rate of 3 percent. Determine the following at a time four years before the bond reaches maturity value compounded continuously , if that discount equal $ 112. (a) Present and future worth.. (b) Discrete compound rate of effective interest which will be received by a purchaser if the bond were obtained for $700. (c) Repeat part (a) for the case where the nominal bond interest is 3 percent compounded continuously
- On January 1, 2021, Water Wonderland issues $20 million of 7% bonds, due in eight years, with interest payable semiannually on June 30 and December 31 each year. Use Table 2 and Table 4. 2. If the market rate is 7%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) The bonds issue at and the issue price is 3. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) The bonds issue at and the issue price isOn January 1, 2021, Water Wonderland issues $20 million of 7% bonds, due in eight years, with interest payable semiannually on June 30 and December 31 each year. Use Table 2 and Table 4.1. If the market rate is 6%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) The bonds issue at and the issue price isOn January 1, 2024, Tableau Company issues $20 million of 9% bonds, due in six years, with interest payable semiannually on June 30 and December 31 each year. Use a financial calculator or Excel. Required: 1. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 2. If the market rate is 9%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 3. If the market rate is 10%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. Help Save & (Do not round intermediate calculations. Round final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) 1. The bonds issue at 2. The bonds issue at 3. The bonds issue at and the issue price is and the issue price is and the issue price is
- Consider an investor who, on January 1, 2XX1, purchases a TIPS bond with an original principal of $174,000, an 9 percent annual coupon rate, and 17 years to maturity.If the semiannual inflation rate during the first six months is 0.5 percent and the semiannual inflation rate for the second six-month period is 1.7 percent, calculate the coupon payment to the investor for the second six-month period. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))A certain government-issued 10-year bond pays an interest at 16 percent every three months. If the total quarterly expense is 83,000 and the bond earns at 20 percent every three months, what is the face value of the bond? How much in the present should he pay for the bond? Round off to two decimal places in the final answer/s.Calculate the effective annual interest rate for the following: Required: a. A 3-month T-bill selling at $97,600 with par value $100,000. b. A 11% coupon bond selling at par and paying coupons semiannually. Complete this question by entering your answers in the tabs below. Required A Required B A 3-month T-bill selling at $97,600 with par value $100,000. Note: Round your answer to 2 decimal places. Effective annual rate %