Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The June Treasury bond futures contract has a quoted price of 95'12. What is the implied annual interest rate?
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- Suppose that a U.S. Treasury bond maturing April 30, 2020 is purchased with a settlement date of April 15, 2019. The coupon rate is 1.125%, the required yield is 1.5%. The dirty (full) price (per 100 par value) of this bond is closest to: (Hint: there are 15 days until the next coupon date and 182 days in the coupon period during which the bond is purchased) 99.614 100.130 100.646 101.678arrow_forwardA Government bond pays a coupon rate of 2.75% and reaches maturity April 21, 2024. The coupon payment is paid semiannually on April 21 and October 21. The investor buys the bond on June 30, 2020 for price of $1,000. The discount rate is 0.305%. Calculate the dirty price, clean price, modified duration and modified convexity of the bondarrow_forwardA Treasury bond that settles on August 10, 2022, matures on November 5, 2029. The coupon rate is 6.8 percent and the 11811 32 quoted price is What is the bond's yield to maturity? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Yield to maturity A Treasury bond that settles on August 10, 2022, matures on November 5, 2029. The coupon rate is 6.8 percent and the quoted price is 118 11/32. What is the bond's yield to maturity? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Yield to maturityarrow_forward
- If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells today for $85, what is the interest rate on the bond? 0 15% 17.6% 1.18% It depends on what the Federal Reserve sets as its target rate for the Federal Funds Rate.arrow_forwardRequired: Find the duration of a bond with settlement date May 29, 2018, and maturity date November 19, 2027. The coupon rate of the bond is 6%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 7%. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified durationarrow_forwardUsing the following information, determine the default risk premium on the 10 year AA corporate bond: Rate inflation 1.96 T-bill 5.00 10y T-Bond 10y AAA Corporate 6.46 6.00 10y AA Corporate 7.76 note: your answer should be to 2 decimal places. So, if your answer is 3.253%, for example, then enter 3.25 without the percent sign.arrow_forward
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