You are considering buying a 6.5% coupon bond. The bond has a par value of $1,000. The bond was issued in October 2020 with a 20-year term to maturity. The bond makes semiannual coupon payments. The current selling price is $1,432. What is the dollar amount of a coupon payment? (Remember that the bond has semi-annual coupon payments.) O $16.25 $32.50

You are considering buying a 6.5% coupon bond. The bond has a par value of $1,000. The bond was issued in October 2020 with a 20-year term to maturity. The bond makes semiannual coupon payments. The current selling price is $1,432. What is the dollar amount of a coupon payment? (Remember that the bond has semi-annual coupon payments.) O $16.25 $32.50

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A $11,000 bond with a coupon rate of 5.35% is redeemable on July 01, 2031. It is purchased on February 10, 2025 when the yield rate is 5.85% compounded semi- annually. Please include a well-labelled timeline diagram. a. What is the purchase price of the bond? Round to the nearest cent b. What is the amount of discount or premium on the bond?
You are interested in purchasing a bond from Swiss international. The bond had a 32 year maturity when it was issued, which was 3 years ago. Its face value was $1,000. The bond pays quarter interest at an 0.1 coupon rate. The bond currently trades at a price of $700, what is the YTM what is the yield to maturity ? what is the current yield? Numeric
Consider the following $1,000 face value bond which makes semi- annual coupon payments, Bond Bank of Montreal Coupon rate 3% Price 108.19 Maturity June 1, 2030 Settlement Date January 3, 2019 What is the total price you would pay for this bond? Enter your answer rounded to two decimal places.
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Solve this one
Consider the following $1,000 face value bond which makes semi-annual coupon payments, Bond Coupon rate Price Maturity Settlement Date Bank of Montreal 3.5% 101.71 December 1, 2030 January 23, 2019 What is the total price you would pay for this bond? Enter your answer rounded to two decimal places. Number
A bond issued on February 1, 2004 with face value of $18000 has semiannual coupons of 6%, and can be redeemed for par (face value) on February 1, 2025. What is the accrued interest and the market price (the “clean” price) of the bond on November 15, 2006, if the bond’s yield on that date is to be 8%? (use actual/actual for accrued interest).
Bond A is a $1,000, 6% quarterly coupon bond with 5 years to maturity.(a) If you bought Bond A today at a yield (APR) of 8%, what is your purchase price? Is this apremium or discount bond? Why?)(b) One year later, Bond A's YTM (APR) has gone down to 6% and you sell it immediately afterreceiving the coupon.(i) What is the current yield? (ii) What is the capital gains yield? (iii) What is the one-year total rate of return (in APR) if the coupons are reinvested at 2%per quarter during the holding period? (iv) Can Bond A’s one-year total rate of return be determined correctly by simply adding upthe current yield and the capital gains yield? Explain your answer without calculations.(c) Consider two other bonds: Bond B and Bond C.Bond B: A $1,000, 7% quarterly coupon bond with 4 years to maturityBond C: A $1,000 zero coupon bond with 2 years to maturity(i) Without calculation, briefly explain which bond in the following pairs has higherinterest rate risk.1) Bond A vs. Bond B 2) Bond B vs.…
Consider the following bond where the coupons are paid annually, Bond Scotiabank Price $1008.50 YTM 9% Years to maturity 8 years What is the coupon rate of this bond? The face value of the bond is $1,000. Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below. Enter your answer rounded to 2 DECIMAL PLACES.
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) 99.614 100.130 100.646 101.678
A 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 bond

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