If she expects to buy one bond, the applicable rate will be ask rate = 98.08
So the purchase price = 1000 x 98.08% = 980.80
Answer : $ 980.80 (Thumbs up please)
Maria is buying a 30-year Treasury bond that has a bid price of 98.02 and an...
QUESTION 9 Peter buys ten zero-coupon bonds with a maturity of 30 years for a total of $4,119.87. Assume he buys the bonds on June 30th. How much interest will he have to report for tax purposes for the first year? Assume annual compounding for simplicity. a. $0 because it is a zero-coupon bond. b. $61.80. c. $123.60. d. $300.00. QUESTION 10 Monique is buying a 30-year Treasury bond that has a bid price of 98.02 and an ask price...
A Treasury bond is quoted as 99.7325 asked and 99.4289 bid. What is the bid-ask spread in dollars on a $500,000 face value bond? A. $862.50 B. $1,267.50 C. $1,275.25 D. $1,518.00
On October 20, 2010, the 8 year treasury note has a bid price of 99:18, and an ask price of 99:20. The treasury note has a face value of $10,000, and a coupon rate of 5% made semiannually. The treasury note matures on October 19, 2015. What is the ask yield-to-maturity?
Evin is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon payments remaining until the bond matures. The semi-annual interest payments are $15.00 and the annual discount rate is 6 percent. Assume that there are 180 days in the coupon period and that there are 120 days between the settlement date and the next coupon payment date. What price will Evin pay for the bond? A. The bid price plus $10 B. The bid price...
A $1,000 face value bond has a bid quote of $101.254 and a bid-ask spread of 0.241. What price must you pay to purchase this bond? Ignore any accrued interest or trading costs. Show work.
A Treasury bond with the longest maturity (30 years) has an ask price quoted at 107.4375. The coupon rate is 3.00 percent, paid semiannually. What is the yield to maturity of this bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A Treasury bond with the longest maturity (30 years) has an ask price quoted at 102.9375. The coupon rate is 3.90 percent, paid semiannually. What is the yield to maturity of this bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
You are considering buying a 10-year, $1,000 par value bond issued by IBM. The coupon rate is 8% annually, with interest being paid semiannually. If you expect to earn a 10% rate of return on this bond, what is the maximum price you should be willing to pay for this IBM bond? A. $877.11 B. $875.38 C. $898.54 D. $911.46
What is the total return of buying a 30 year treasury bond with 3% coupon now at a 4% yield, and selling it after 3 years at 4.5% yield (right after you get the 6th coupon payment), assuming you don't reinvest the coupons? -7.18% 1.22% 2.20% 3.72%
Use the following bond price quotation for a U.S. Treasury bond to answer the questions below. Bid Price Maturity 2045 Feb 15 Coupon 2.500 Ask Price 103.174 103.154 (a) What is the amount of the semi-annual coupon payment you would receive if you were to purchase one of these bonds? Assume that the face value of each bond is $1000. [4 Points] (b) How much would you receive if you sold one of these bonds? Assume that the face value...