Homework Answers
a)
Annual coupon payment = 0.035 x $ 1,000.00
Annual coupon payment = $ 35.00
-------------------------------------------------------------------------------------------------
b)
The life of the T-note is 10 years
The total interest paid over the life of the T-note = $ 35.00 x 10 years
Total amount of interest paid over the life of the T-note = $ 350.00
Add Answer to:
Suppose the Treasury department issues a 10 year T-Note. The T-Note has a face value equal...
3. Suppose that a one-year Treasury bond has a face value of $110,000.00 and is currently selling in the bond market for $100,000.00. This bond is safe, because the U.S. Treasury never defaults o...
3. Suppose that a one-year Treasury bond has a face value of $110,000.00 and is currently selling in the bond market for $100,000.00. This bond is safe, because the U.S. Treasury never defaults on its promises. For the sake of this question (and to make life easier for all of us), assume that the face value and the price of this bond will remain the same throughout the story.The Treasury issues another one-year bond with a face value of $58,300.00...
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 <...
A 10-year Treasury bond with par value of $1,000 has a 6% p.a. coupon rate and...
A 10-year Treasury bond with par value of $1,000 has a 6% p.a. coupon rate and pays interest every six months. The bond is four years old and has just made its eighth payment. The market now requires a 7% p.a. return on the bond. What is the expected price of the bond? a. $965.63 b. $981.63 c. $809.34 d. $951.68 e. $1,000.00
You invest in a 5-Year T-Note with a face value of $4,488 and a coupon rate...
You invest in a 5-Year T-Note with a face value of $4,488 and a coupon rate of 3.669%. What is the total return of the T- Note? Remember that currency should always be rounded to 2 decimals.
A 25-year Treasury bond is issued with face value of $1,000. paying Interest of $44 per...
A 25-year Treasury bond is issued with face value of $1,000. paying Interest of $44 per year. If market ylelds Increase shortly after the T-bond is issued, what is the bond's coupon rate? (Round your answer to 1 decimal place.) Coupon rate
2. You are considering purchasing a 10 year bond with a face value of $1000 with...
2. You are considering purchasing a 10 year bond with a face value of $1000 with an annual coupon of $55.00. The current interest rate is 6%, what would you expect to pay for the bond? 3. What is the current yield on a 1 year bond $100 coupon bond which you pay $98.00 for with an annual coupon payment of $6.00. 4. Assuming the same coupon payment as listed in question 3 but now the price you pay for...
12. The current price of a 1-year zero-coupon Treasury bond is $975 (with $1,000 par value)....
12. The current price of a 1-year zero-coupon Treasury bond is $975 (with $1,000 par value). If the annual forward rate between year 1 and 2 implied by the zero yield curve is equal to 4.5%, what is the current price of a 2-year zero-coupon Treasury bond (with $1,000 par value)? (a) $950.63 (b) $933.01 (c) $924.56 (d) $1,000.00
GenerL Finance Ltd. (GFL) issues 10-year bonds in 2011 with a $1,000 face value and a...
GenerL Finance Ltd. (GFL) issues 10-year bonds in 2011 with a $1,000 face value and a $150 coupon. The interest rate at which GFL issues these bonds is
On January 1, 2020, Bulgur Corporation issues 12-year bonds with a face value of $10,000,000 and...
On January 1, 2020, Bulgur Corporation issues 12-year bonds with a face value of $10,000,000 and a stated annual interest rate of 6%. The bonds pay interest annually on December 31. The market rate of interest is 5%, and the company receives cash proceeds of $10,886,325 when the bonds are issued. What is the journal entry that Bulgur will make to record the second bond interest payment on December 31, 2021?
for my BUS class Garcia Company issues 10%, 15-year bonds with a par value of $320,000...
for my BUS class
Garcia Company issues 10%, 15-year bonds with a par value of $320,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 14. The effective interest method is used to allocate interest expense 1. Using the implied selling price of 117 14, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will...
3. Suppose that a one-year Treasury bond has a face value of $110,000.00 and is currently selling in the bond market for $100,000.00. This bond is safe, because the U.S. Treasury never defaults on its promises. For the sake of this question (and to make life easier for all of us), assume that the face value and the price of this bond will remain the same throughout the story.The Treasury issues another one-year bond with a face value of $58,300.00...
You invest in a 5-Year T-Note with a face value of $4,488 and a coupon rate of 3.669%. What is the total return of the T- Note? Remember that currency should always be rounded to 2 decimals.
A 25-year Treasury bond is issued with face value of $1,000. paying Interest of $44 per year. If market ylelds Increase shortly after the T-bond is issued, what is the bond's coupon rate? (Round your answer to 1 decimal place.) Coupon rate
2. You are considering purchasing a 10 year bond with a face value of $1000 with an annual coupon of $55.00. The current interest rate is 6%, what would you expect to pay for the bond? 3. What is the current yield on a 1 year bond $100 coupon bond which you pay $98.00 for with an annual coupon payment of $6.00. 4. Assuming the same coupon payment as listed in question 3 but now the price you pay for...
12. The current price of a 1-year zero-coupon Treasury bond is $975 (with $1,000 par value). If the annual forward rate between year 1 and 2 implied by the zero yield curve is equal to 4.5%, what is the current price of a 2-year zero-coupon Treasury bond (with $1,000 par value)? (a) $950.63 (b) $933.01 (c) $924.56 (d) $1,000.00
for my BUS class
Garcia Company issues 10%, 15-year bonds with a par value of $320,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 14. The effective interest method is used to allocate interest expense 1. Using the implied selling price of 117 14, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will...
Most questions answered within 3 hours.
-
Producer surplus is:
a.
always equal to consumer surplus.
b.
the amount paid to sellers above...
asked 24 seconds ago -
In 2005, Derrek Lee led the National Baseball League with a
0.335 batting average, meaning that...
asked 19 minutes ago -
Write a recursive function moreFactors(a,b,fact) that does the
following:
1. Takes as an input 3 positive...
asked 18 minutes ago -
In order for corporations to behave ethically, they must,
ultimately, give up the profit motive.
...
asked 19 minutes ago -
Blue Spruce Corp. owns equipment that cost $63,400 when
purchased on January 1, 2017. It has...
asked 39 minutes ago -
A lottery exists where balls numbered 1 to 17 are placed in an
urn. To win,...
asked 1 hour ago -
Please explain steps:
An 80 kg swimmer steps off a platform 10 m above the water...
asked 1 hour ago -
26) Briefly describe, using words or simple diagrams, the
chemiosmotic theory for coupling oxidation to phosphorylation...
asked 3 hours ago -
Suppose that XX is a random variable with mean 16 and standard
deviation 5 . Also...
asked 4 hours ago -
Calculate the number density of argon gas at a temperature of
24C and a pressure of...
asked 7 hours ago -
Alternative
Classification
How to Estimate
Probabilities from Data? ( For continuous Attributes)
And How to generate...
asked 7 hours ago -
An explosion breaks a 20.0-kg object into three parts. The
object is initially moving at a...
asked 8 hours ago