Question

Problem 9.01

Il Tuule), Il you dle asked to provide a discount Pale of any variety Prease answer in decimal terms, not in percentage terms. Also provide at least 5 digits of accuracy in your answer. For example, if the answer is 7.3254%, please enter your response as 0.073254, not as 7.3254, or as 7.3254%. in order to ensure 5 digit precision at the end of the problem, you should use at least 6 (preferably 7) digits of precision in your computations. Problem 9.01 (i.e. Day 9. Problem 01). Using the 32" quoting convention discussed in the book, convert the following quoted prices for bonds into their dollar equivalent (assuming a $1000 face value). For example, a quote of 52:08 implies a price of $522.50. Round your answers to the nearest penny when needed. powerShot Part A: 86:12 Part B: 105:28 Part C: 92:02 Part D: 9:16 NOTE: As a check (before you put them into PolyLearn), take your answers and convert them back into the 32 shown above. If you did it correctly (both ways) then you should get the same quoted price back. quotes bona Problem 9.02 (i.e. Day 9, Problem 02). Consider a 4 year zero coupon bond priced such that its YTM is 7% ner year Armum $1000

Answer 1

Quotes	Whole Dollar Amount (A)	Fraction Presented in 32nd (B)	Fraction Converted in to Cent/Pence (D) = (B)/32	Price at quoted at base of $100 (E) = (A)+(D)	Actual Face Value (F)	Actual Price at Face Value (E) x (F)
86:12	86	12	0.38	86.38	1000	863.75
105:28	105	28	0.88	105.88	1000	1058.75
92:02	92	2	0.06	92.06	1000	920.63
9:16	9	16	0.50	9.50	1000	95.00