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Question 12 1 pts A 8.36% semiannual-pay corporate bond matures 15 August 2028 and makes coupon...
A $10,000 face value 12% coupon corporate bond matures on March 15, 2028. You purchase the...
A $10,000 face value 12% coupon corporate bond matures on March 15, 2028. You purchase the bond on July 16, 2015 (M1) at a quoted price of 99.375. Please, compute the bond’s YTM, its invoice price as of the settlement date (M4), and its dirty price on the purchase date (M1). State the yield as a percentage with 6 digits after the decimal point and the prices in dollars and cents. Show all calculator inputs. You must use your calculator’s...
1. A bond with a coupon rate of 7% makes semiannual coupon payments on January 15...
1. A bond with a coupon rate of 7% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the ask price for the bond on January 30 at 100.0625. What is the invoice price of the bond? Assume this bond use actual/actual day count convention, and the 6month coupon period has 182 days. 2. Suppose that today's date is April 15. A bond with a 10% coupon paid semiannually every...
A 7% semi-annual coupon bond settles 12/11/15 at 105.00 (clean price). Bond maturity is 12/31/25. For...
A 7% semi-annual coupon bond settles 12/11/15 at 105.00 (clean price). Bond maturity is 12/31/25. For a 300 basis points increase in yield, assuming a 30/360-day count convention, what is the actual (dirty) price? 86.72 88.19 83.61 82.53 85.60
Problem 12-10 It is April 2, 2018, and you are considering purchasing an investment-grade corporate bond...
Problem 12-10 It is April 2, 2018, and you are considering purchasing an investment-grade corporate bond that has a $1,000 face value and matures on June 4, 2022. The bond's stated coupon rate is 5.20 percent, and it pays on a semiannual basis (that is, on June 4 and December 4). The bond dealer's current ask yield to maturity is 3.40 percent. (Note: Between the last coupon date and today, there are 118 "30/360" days. Between last coupon date and...
Bond Calculations
12. (6 pts) An 8.000% semi-annual coupon corporate bond that matures on 3/15/25, is purchased for settlement on 4/15/21. The yield to maturity is 6.333% quoted on a street convention semiannual bond basis (APR2). Accrued interest is calculated using the 30/360 day count convention. (a) What is the flat (clean) price of the bond on the SDT? (use the BA II Plus BOND spreadsheet)(b) What is the accrued interest on the SDT? (use the BA II Plus BOND spreadsheet)(c) How many days are there (“T”) in the current...
Question 21 1 pts An investor buys a 9% annual-pay bond maturing July 15, 2020 on...
Question 21 1 pts An investor buys a 9% annual-pay bond maturing July 15, 2020 on September 6, 2013, (51 days after the coupon date using a 30/360 day-count convention). The bond's yield to maturity is 8%. How much (as a percentage of par) will the investor actually pay for the bond? O 105.206 O 104.623 O 106.360
Bond dealers most often quote the: Flat Price Full Price Full Price plus accrued interest none...
Bond dealers most often quote the: Flat Price Full Price Full Price plus accrued interest none of the above. An investor, with an investment horizon of 10 years is considering purchasing a bond with a Macaulay Duration of 12. If the investor goes through with the purchase she will be subject to ________ risk and be worse off if interest rates ________. reinvestment; go up reinvestment; go down interest rate; go down none of the above. What is the Approximate...
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10...
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10 years at $1,000. If the investor's required rate of return is 14 percent, what should the current market price of the bonds be? 2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend...
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10...
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10 years at $1,000. If the investor's required rate of return is 14 percent, what should the current market price of the bonds be? 2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend...
1) Consider a 10-year bond trading at $1150 today. The bond has a face value of...
1) Consider a 10-year bond trading at $1150 today. The bond has a face value of $1,000, and has a coupon rate of 8%. Coupons are paid semiannually, and the next coupon payment is exactly 6 months from now. What is the bond's yield to maturity? 2)A coupon-paying bond is trading below par. How does the bond's YTM compare to its coupon rate? a. Need more info b. YTM = Coupon Rate c. YTM > Coupon Rate d. YTM <...
Problem 12-10 It is April 2, 2018, and you are considering purchasing an investment-grade corporate bond that has a $1,000 face value and matures on June 4, 2022. The bond's stated coupon rate is 5.20 percent, and it pays on a semiannual basis (that is, on June 4 and December 4). The bond dealer's current ask yield to maturity is 3.40 percent. (Note: Between the last coupon date and today, there are 118 "30/360" days. Between last coupon date and...
Question 21 1 pts An investor buys a 9% annual-pay bond maturing July 15, 2020 on September 6, 2013, (51 days after the coupon date using a 30/360 day-count convention). The bond's yield to maturity is 8%. How much (as a percentage of par) will the investor actually pay for the bond? O 105.206 O 104.623 O 106.360
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10 years at $1,000. If the investor's required rate of return is 14 percent, what should the current market price of the bonds be? 2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend...
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10 years at $1,000. If the investor's required rate of return is 14 percent, what should the current market price of the bonds be? 2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend...
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