It is March 10, 2016. The price of a Treasury bond with an 8% coupon that...
It is March 10, 2016. The price of a Treasury bond with an 8% coupon that matures on June 30, 2030, is quoted as 102-04. What is the cash price?
Homework Answers
Solution:
The number of days from the last coupon date 31/12/2015 to 10/3/2016 is 70 (considering 29 days for February month). There are 182 days from December 31, 2015 and June 30, 2016.
Cash price of bond = Accrued Interest + Quoted price
Cash price of bond = (8/2)*(70/182) + 102.125
Cash price of bond = 1.538 + 102.125
Cash price of bond = $103.663
Hence the cash price is $103.663
Add Answer to:
It is March 10, 2016. The price of a Treasury bond with an
8% coupon that...
It is January 9, 2017. The price of a Treasury bond with a 6% coupon that...
It is January 9, 2017. The price of a Treasury bond with a 6% coupon that matures on Oct 12, 2030, is quoted as 102-04. What is the cash price? (This bond pays coupons on Oct 12 and Apr 12. Excel might be helpful in calculating the difference in dates.) (required precision: 0.01 +/- 0.01)
It is January 9, 2017. The price of a Treasury bond with a 5% coupon that...
It is January 9, 2017. The price of a Treasury bond with a 5% coupon that matures on Oct 12, 2030, is quoted as 102-02. What is the cash price? (This bond pays coupons on Oct 12 and Apr 12. Excel might be helpful in calculating the difference in dates.) (required precision: 0.01 +/- 0.01)
A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon...
A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 6.30 percent and the bond has a yield to maturity of 5.85 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration
porte A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The...
porte A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 5.75 percent and the bond has a yield to maturity of 5.08 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not found intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration
Problem 10-35 Duration (LO4, CFA6) A Treasury bond that settles on October 18, 2016, matures on...
Problem 10-35 Duration (LO4, CFA6) A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 6.15 percent and the bond has a yield to maturity of 5.64 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. 11.3694 Macaulay duration Modified duration 10.7624
ATreasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate...
ATreasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 5.75 percent and the bond has a leld to maturity of 5.08 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration
Problem 6-30 Coupon Rates (LO 2] You find the following Treasury bond quotes. To calculate the...
Problem 6-30 Coupon Rates (LO 2] You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Rate Maturity Mo/Yr May 30 Bid Asked 103.5475 103.6353 Ask Chg Yld +.3028 2219 May 35 104.4965 104.6422 +.4305 . ?? 6.302 6.168 May 45 ?? ?? ?? +.5418 +.5418 4.051 In the above table, find the Treasury bond that matures in May...
Please answer in electronic text. Thank you! 5. P You are looking at a Treasury bond that has a coupon of 4% and makes semiannual coupon payments. It matures in 10 years. a. What are the bond's c...
Please answer in electronic text. Thank you!
5. P You are looking at a Treasury bond that has a coupon of 4% and makes semiannual coupon payments. It matures in 10 years. a. What are the bond's cash flows? b. If the yield to maturity is 3.6% what is the interest rate per period? c. What is the present discounted value of the coupon payments? What is the present discounted value of the principal? What is the price of the...
Assume that the ‘expectations theory’ fully explains the Treasury Bond Yield Curve. The 10-year zero-coupon bond...
Assume that the ‘expectations theory’ fully explains the Treasury Bond Yield Curve. The 10-year zero-coupon bond maturing in 2030 has a yield-to-maturity (YTM) of 3.5%. Assume that instead of simply buying the 10 year, you decide you will: • buy a 5-year bond today, then, when that bond matures in 2025, • then, you will buy a new 5-year bond that starts in 2025 and will mature in 2030. Scenario A – Upward sloping yield curve. a) if today’s 5...
(2) Suppose that it is March 9, 2015, and the bond under consideration is an 9%...
(2) Suppose that it is March 9, 2015, and the bond under consideration is an 9% coupon payment due on July 10, 2034, with a quoted price of 95-06. Because coupons are paid semiannually on government bonds, the most recent coupon date is January 10, 2015, and the next coupon date is July 10, 2015. What is dirty price for a treasury bond with face value $1,000 if delivered on March 9, 2015
A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 6.30 percent and the bond has a yield to maturity of 5.85 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration
porte A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 5.75 percent and the bond has a yield to maturity of 5.08 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not found intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration
Problem 10-35 Duration (LO4, CFA6) A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 6.15 percent and the bond has a yield to maturity of 5.64 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. 11.3694 Macaulay duration Modified duration 10.7624
ATreasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 5.75 percent and the bond has a leld to maturity of 5.08 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration
Problem 6-30 Coupon Rates (LO 2] You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Rate Maturity Mo/Yr May 30 Bid Asked 103.5475 103.6353 Ask Chg Yld +.3028 2219 May 35 104.4965 104.6422 +.4305 . ?? 6.302 6.168 May 45 ?? ?? ?? +.5418 +.5418 4.051 In the above table, find the Treasury bond that matures in May...
Please answer in electronic text. Thank you!
5. P You are looking at a Treasury bond that has a coupon of 4% and makes semiannual coupon payments. It matures in 10 years. a. What are the bond's cash flows? b. If the yield to maturity is 3.6% what is the interest rate per period? c. What is the present discounted value of the coupon payments? What is the present discounted value of the principal? What is the price of the...
(2) Suppose that it is March 9, 2015, and the bond under consideration is an 9% coupon payment due on July 10, 2034, with a quoted price of 95-06. Because coupons are paid semiannually on government bonds, the most recent coupon date is January 10, 2015, and the next coupon date is July 10, 2015. What is dirty price for a treasury bond with face value $1,000 if delivered on March 9, 2015
Most questions answered within 3 hours.
-
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 27 minutes ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 1 hour ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 1 hour ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 3 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 4 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 4 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 4 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 5 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 5 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 5 hours ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 5 hours ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 6 hours ago