Homework Answers
Computation for current value of bonds:
Assuming quarterly MARR = 1.5%
= $150(P/A, 1.5%, 120) + $10,000(P/F,1.5%,120)
= 6659.81 + 1675.23
= 8335.05
Add Answer to:
Last month Jim purchased $10,000 of U.S. Treasury bonds (their face value was $10,000). These bonds...
Last month Jim purchased $9.400 of U.S. Treasury bonds (their face value was $9.400). These bonds...
Last month Jim purchased $9.400 of U.S. Treasury bonds (their face value was $9.400). These bonds have a 28-year maturity period, and they pay 1.0% interest every three months (1.e. the APR is 4%, and Jim receives a check for $94 every three months). But interest rates for similar securities have since risen to a 6% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 6%, what is the current value...
Last month Jim purchased S9,200 of U.S. Treasury bonds (their face value was S9,200). These bonds...
Last month Jim purchased S9,200 of U.S. Treasury bonds (their face value was S9,200). These bonds have a 33-year maturity period, and they pay 2.0% interest every three months (i.e., the APR is 8%, and Jim receives a check for $184 every three months). But interest rates for similar securities have since risen to a 12% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 12%, what is the current value...
Problem 5-11 (algorithmic) 15 Question Help Last month Jim purchased $10,600 of U.S. Treasury bonds (their...
Problem 5-11 (algorithmic) 15 Question Help Last month Jim purchased $10,600 of U.S. Treasury bonds (their face value was $10,600). These bonds have a 34-year maturity period, and they pay 2.0% interest every three months (i.e., the APR is 8%, and Jim receives a check for $212 every three months). But interest rates for similar securities have since risen to a 9% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to...
Last month Jim purchased $11,000 of US bonds (face value). These bonds have a 26 maturity...
Last month Jim purchased $11,000 of US bonds (face value). These bonds have a 26 maturity period, and they pay 1 percent interst every 3 months (i.e. the APR is 4%, and Jim receives a check for $110 every three months). But interst rates for similar securites have since risen to a 8% APR because of interst rate increase by the Federal Reserve Board. In view of the interest-rate increase to 8%, what is the current value of Jim's bonds?...
Three months ago, Jim purchased $14000 of U.S. Treasury bonds. These bonds have a 30-year maturity...
Three months ago, Jim purchased $14000 of U.S. Treasury bonds. These bonds have a 30-year maturity period, and they pay dividends every three months at an APR of 14%. However, today’s interest rates for similar securities have risen to a (15)%APR (compounded quarterly). In view of the interest-rate increase to (15)%, what is the current value of Jim’s bonds today? draw the cash flow diagram if applicable.
What is the yield to maturity on a U.S. Treasury Bill with a face value of $4,500 that is purchased for $4,250?
What is the yield to maturity on a U.S. Treasury Bill with a face value of $4,500 that is purchased for $4,250?
U.S. Treasury has just issued securities with, $10,000 par value and a 4% coupon rate with...
U.S. Treasury has just issued securities with, $10,000 par value and a 4% coupon rate with semiannual coupons. The maturity of the bonds is 10 years. The first coupon payment will be paid six months from today. What cash flows will you receive if you hold this bond until maturity? What is the price, i.e. present value of the bond today if the yield is 6%?
Treasury securities are issued and backed by the U.S. government and, therefore, are considered to be...
Treasury securities are issued and backed by the U.S. government and, therefore, are considered to be the lowest-risk securities on the market. As an investor looking for protection against inflation, you are considering the purchase of inflation-adjusted bonds known as U.S. Treasury Inflation-Protected Securities (TIPS). With these securities, the face value (which is paid at maturity) is regularly adjusted to account for inflation; however, the semiannual interest payment (called the bond dividend) remains the same. You purchased a 10-year $10,000...
A 28-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25%...
A 28-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity is 5.0% (a six-month discount rate of 5.0/2 = 2.5%). (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. What is the present value of the bond? Present value $ b. If the yield to maturity changes to 1%, what will be the present value? Present value $...
A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5%...
A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5% (2.75% of face value every six months). The reported yield to maturity is 5.2% (a six-month discount rate of 5.2/2 = 2.6%). (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. What is the present value of the bond? Present value $ b. If the yield to maturity changes to 1%, what will be the present value? Present value $...
Last month Jim purchased $9.400 of U.S. Treasury bonds (their face value was $9.400). These bonds have a 28-year maturity period, and they pay 1.0% interest every three months (1.e. the APR is 4%, and Jim receives a check for $94 every three months). But interest rates for similar securities have since risen to a 6% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 6%, what is the current value...
Last month Jim purchased S9,200 of U.S. Treasury bonds (their face value was S9,200). These bonds have a 33-year maturity period, and they pay 2.0% interest every three months (i.e., the APR is 8%, and Jim receives a check for $184 every three months). But interest rates for similar securities have since risen to a 12% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 12%, what is the current value...
Problem 5-11 (algorithmic) 15 Question Help Last month Jim purchased $10,600 of U.S. Treasury bonds (their face value was $10,600). These bonds have a 34-year maturity period, and they pay 2.0% interest every three months (i.e., the APR is 8%, and Jim receives a check for $212 every three months). But interest rates for similar securities have since risen to a 9% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to...
Most questions answered within 3 hours.
-
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 22 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 4 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