A bond with a 7% coupon rate makes payments on January 15 and July 15 of each year 182-day coupon period). On January 30, the ask price for the bond was reported as 100:02. On April 15, it was selling at an ask price of 101:04. What is the bond's invoice price on January 30? If you purchased the bond from a dealer on April 15, what price would you have to pay for it? (Note: Bond quotes are always at a percentage of the face value. Therefore, 103:05 must be read as 103.05% of face value, so the quoted price is 51,030.5.)

A bond with a 7% coupon rate makes payments on January 15 and July 15 of each year 182-day coupon period). On January 30, the ask price for the bond was reported as 100:02. On April 15, it was selling at an ask price of 101:04. What is the bond's invoice price on January 30? If you purchased the bond from a dealer on April 15, what price would you have to pay for it? (Note: Bond quotes are always at a percentage of the face value. Therefore, 103:05 must be read as 103.05% of face value, so the quoted price is 51,030.5.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 13 years, the coupon rate is 11% paid semiannually, and the market yield (discount rate) is 10%. What is the estimated value of this bond today? Enter your answer in terms of dollars and cents, rounded to 2 decimals, and without the dollar sign. That means, for example, that if your answer is $127.5678, you must enter 127.57
You are interested in purchasing a bond from ExAm Solutions. The bond had a 30 year maturity when it was issued, which was 10 years ago. Its face value was $1,000. The bond pays semi-annual interest at an 8% coupon rate. The bond currently trades at a price of $950 what is the YTM b. 0846 O C. 0428 O d. A different value e. 0876
A bond with 9 years left to maturity is trading for $962. It pays coupons semiannually. Its YTM is currently 3.5%. The coupon rate for this bond must be ________%.
Suppose that today’s date is April 15. A bond with a 9% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.143. If you buy the bond from a dealer today, what price will you pay for it? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
For a one year bond of $2,300 at a simple interest rate of 10% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is s (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $. (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)
A bond with 6 years left to maturity is trading for $975. It pays coupons semiannually. Its YTM is currently 3.5%. The coupon rate for this bond must be ________%.
Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Maturity date Purchase date Coupon rate (%) Market rate (%) Dec 15, 1992 Dec 15, 2022 June 15, 2010 5.40 7.2 Assume that Bond interest is paid semiannually. The bond was originally issued at its face value. Bonds are redeemed at their face value at maturity. Market rates of return are compounded semiannually. Bond price $
San Miguel Company's 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The market price of the bond is $1,105, and your required rate of return is 8.5 percent. a. Compute the bond's expected rate of return. b. Determine the value of the bond to you given your required rate or return. c. Should you purchase the bond? Why or why not? (*You must show your calculation process as well.)
please use ball plus calculator function
Accounting A bond has an annual coupon of 67%, which makes semiannual payments. The next payment is 2 months away. The bonds quoted price is 102.0 with par of $1000, what is the bond's clean price? (Please use at least 5 decimal places and do not use $ symbol in the answer)
(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 14 years until maturity. You can purchase the bond for $915. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 7 percent? a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.)
Consider an investor who, on January 1, 2XX1, purchases a TIPS bond with an original principal of $174,000, an 9 percent annual coupon rate, and 17 years to maturity.If the semiannual inflation rate during the first six months is 0.5 percent and the semiannual inflation rate for the second six-month period is 1.7 percent, calculate the coupon payment to the investor for the second six-month period. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

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