Today is 31 Dec 2022, and you see a 5 year bond with 5% annual coupon maturing on 31 Dec 2027, quoted at a price of 95.5/95.6. What is the Dollar Value of 1 bps move in interest rates (DV01) for $10 million investment in this bond?
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Today is 31 Dec 2022, and you see a 5 year bond with 5% annual coupon maturing on 31 Dec 2027, quoted at a price of 95.5/95.6. What is the Dollar Value of 1 bps move in interest rates (DV01) for $10 million investment in this bond?
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- In November 2016 you purchase a 4 year US Government bond. The bond has an annual coupon rate of 6.25%, paid semi-annually. If investors demand a 0.950% semiannual return, what is the price of the bond? Select one: a. 55000 b. 1210 c. 430 d. 70A government bond has coupon yield 10.9%, face value of 4000 EUR, and maturity in 2026. The coupons are paid yearly. Today is 2022, and we just received a coupon. The government yield curve for time-to-maturity 4 years shows a yield of 5.0%. 1. What is the fair price of the bond today? 2. What is the duration of the bond?Calculate the price of a 5-year semi-annual coupon bond with an annual coupon rate of 1.875% and face value 100. Assume that the bond’s maturity is 1stMarch 2029 and that it has just made its most recent coupon payment. What is its YTM? On the same date a bond with maturity 28th February 2029 with coupon rate 1.875% was quoted at 4.179%. Why do you think that the YTMs are different on the two 5-year bonds?
- Today is January 2, 2022, and investors expect the annual nominal risk-free interest rates in 2022 through 2024 to be: Year One-Year Rate (rRF) 2022 2.5 % 2023 2.3 2024 3.3 Assume the bonds have no risks. What is the yield to maturity for Treasury bonds that mature at the end of 2023 (a two-year bond)? Round your answer to one decimal place. % What is the yield to maturity for Treasury bonds that mature at the end of 2024 (a three-year bond)? Round your answer to one decimal place. %Consider a government bond that pays coupon semi-annually on 15 February and 15 August each year, where the annual coupon rate is 7%. The face value of the bond is $100 and the bond is redeemable at par on 15 August 2030. If the current date is 27 March 2021 and the bond yield is quoted as 7.5% per annum compounded semi-annually, calculate the market price (which is also known as the clean price) with the help of the RBA formula.It is 25 July 2022; you observe two treasury bills Maturity 25 September 2022, Price 99.7985 Maturity 25 March 2023 , Price 98.3855 1) What would be a fair price for a bond, maturing on 25 March 2023, paying a 5% per annum coupon rate, with a semi-annual coupon? 2) Now suppose that you observed a bond, maturing on 25 Septem- ber 2023, paying a 1% per annum coupon rate (with semi-annual coupons), trading at a yield to maturity of 2.75%. Use the DMO formula to calculate the bond’s price.
- You are interested in purchasing a bond maturing on November 1st, 2029. The bond pays semiannual coupons at a 6% annual coupon rate. It has a discount rate of 4% and a $1,000 par value. Today is November 1st, 2023. What is the price (in terms of dollars) of the bond?Consider the following $1,000 face value bond which makes semi-annual coupon payments, Bond Coupon rate Price Maturity Settlement Date CIBC 6% 99.04 December 1, 2030 January 26, 2019 What is the total price you would pay for this bond? Enter your answer rounded to two decimal places. NumberOn January 1, 2024 you buy a 30-year Treasury bond for $930 with exactly 30 years until maturity. This $1000 par value bond has a coupon rate of 5% and makes semiannual coupon payments. What is the current yield on this bond? a. 2.74% b. 5.38% c. 6.54% d. 5.47% e. 3.32%
- A one-year zero coupon bond costs $99.43 today. Exactly one year from today, it will pay $100. What is the annual yield-to-maturity of the bond? (1.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of $100 in one year?) 1.0057 0.0057 2.0057 -0.0057On January 2021, you buy a 10-year coupon bond with coupon payments of $10,000 per year and a final value of $100,000. The yield to maturity of this bond is 10 percent. On January 2022, you collect your first coupon and sell the bond in the bond market. On January 2022 the yield to maturity of this bond decreases to 8 percent. Calculate the following: a. holding period return rate b. current yield rate c. capital gain rate Please include formulas and calculations5. Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2023, for $10,000 of the bonds?