Jay purchased a Treasury bond with a coupon rate of 4.49% and face value of $100. The maturity date of the bond is 15 March 2029. (b) In fact, Yuri changes his plan and Jay plans to sell this bond on 7 January 2022. What was Jay's sale price (rounded to four decimal places)? Assume a yield of 3.02% p.a. compounded half - yearly. Question Answer a. 111.6359 b . 110.8412 c. 109.1924 d . 108.7396
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- Iolanda purchased a Treasury bond with a coupon rate of 4.59% and face value of $100. The maturity date of the bond is 15 April 2029. (a) Luciana plans to purchase Iolanda's Treasury bond on 12 April 2018. What price will Luciana pay (rounded to four decimal places)? Assume a yield of 2.54% p.a. compounded half-yearly. a. 119.5663 b. 119.5414 c. 119.5404 d. 118.7648Question A .Today is 1 July 2021, William plans to purchase a corporate bond with a coupon rate of j2 = 3.65% p.a. and face value of 100. This corporate bond matures at par. The maturity date is 1 January 2024. The yield rate is assumed to be j2 = 4.5% p.a. Assume that this corporate bond has a 9.6% chance of default in any six-month period during the term of the bond. Assume also that, if default occurs, William will receive no further payments at all. Calculate the purchase price for 1 unit of this corporate bond. Round your answer to three decimal places. a. 99.016 b. 97.191 c. 55.030 d. 60.418 Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineOn Jan 1st 2019 Joe purchased a newly issued one-year government bond with a principal of $1,000 and an annual coupon rate of 5 percent. If the prevailing market interest rate falls to 2 percent per annum on Jan 2nd 2019, what is the expected market price of the bond? Select one: O a. $900 O b. $1,000 O c. $980 O d. $1,029 O e. $1,020
- a. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond for 25 years until it matured with a value $1000? a. Rate of return____% b. Suppose under the terms of thebond you could redeem the bond in 2024. DMF agreed to pay an annual interest rate of 1.4 percent until the date. How much would the bond be worth at that time? b. Bond value_____ c. In 2024 instead of cashing in the bond for its then current value you decide to hold the bond until it mature in 2043. What annual rate of return will you earn over the last 19 years? c. Rate of return___%A $1000 bond with semi-annual coupons at j2 = 10% payable January 1 and July 1 each year matures on July 1, 2019, for $1050. a) Determine the price on January 1, 2014, to yield j2=1012%j2=1012%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $ b) Is the bond purchased at a premium or a discount? Premium Discount c) Calculate the entries in the bond schedule on July 1, 2014, and January 1, 2015. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round your answers to 2 decimal places.) Bond InterestPayment Interest on Book Value Book ValueAdjustment Book Value - - -On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free. Issuer Par Value Tenor Coupon Rate Issue Date Maturity Date Coupon Payment every 3 months O 5.15% O 5.25% 16888 Corporation O 5.2% P10,000 O 5.3% 5 years 5.2% p.a. If Eric sells the bond on December 10, 2020 at P10,100, what would be the current yield of the buyer? December 10, 2018 December 10, 2023
- Sally purchased a 5.73 percent coupon bond with a clean price of $1,031.83. What is the invoice price of the bond if there is four months to the next semiannual coupon date? A $1,012.73 B $1,022.28 C$1,041.38 D) $1,050.93 (E $1,089.13A $1,000 bond that pays interest at j23D6% is redeemable at par on March 1, 2025. Find the purchase price that would have been paid on September 1, 2010 to yield the investor j2=4.8%. Your Answer: AnswerASAP 1. Amed bought a bond tor $800. The bond has a face value of $1000, pays 10% dividend semiannualy and will mature in 10 yearsa) Draw the cash flow diagram of the bond. b)What is the yield to maturity of the bond (bond's rate of return per year)? c) Suppose that Ahmed is yet to buy this bond provided that the market interest rate is 8% nerest compounded quarterly, what will be the maximum that he will pay to buy this bond.
- Analysis and Application of Knowledge Rossiana Marie, Inc. lists a bond as Ross 9s34, and shows the price as selling for 88.875% of its face value. If your required return rate is 10%. would you buy one of these bonds in 2021? * 5 points Your answer Upload Solution: Rossiana Marie, Inc. lists a bond as Ross 9534, and shows 15 points the price as selling for 88.875% of its face value. If your required return rate is 10%, would you buy one of these bonds in 2021? 1 Add file Intal Corporation bonds have a coupon of 14%. pay interest semiannually. Spoints and mature in 7 years. Your required rate of return for such an investment is 10% annually. How much should you pay for a PHP1.000 Intal Corporation bond? Your answer Upload Solution: Intal Corporation bonds have a coupon of 14%. pay 10 points interest semiannually, and mature in 7 years. Your required rate of return for such an investment is 10% annually. How much should you pay for a PHP1.000 Intal Corporation bond?* 1 Add fileAn investor just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 5 percent with interest being paid semiannually. If the investor expects to earn an 8 percent rate of return on this bond, how much should she pay for it? A. $950.75 OB.$1,003.42 OC. $875.38 OD. $1,122.87 E.$796.15On March 1, 2018, you purchased $1.000.000 face value of a bond that pays an annual coupon of $79 every January 1st. The yield-to-maturity is currently 6%. You agreed with the seller on a price of 96.5% Your back office, which is responsible for sending the correct cash amount, asks you a) how much money they should exactly send to the seller? (assume 365 days calendar basis)? b) if the amount would increase if the yield-to-maturity would increase to 9%? Why? c) if the amount would increase if the coupon rate would be 8%?