A STRIPS traded on May 1, 2022, matures in 18 years on May 1, 2040. Assuming a yield to maturity of 6.1 percent, what is the STRIPS price? Note: Use Excel to answer this question. Enter your answer as a percentage of par value. Round your answe to 4 decimal places. STRIPS price

A STRIPS traded on May 1, 2022, matures in 18 years on May 1, 2040. Assuming a yield to maturity of 6.1 percent, what is the STRIPS price? Note: Use Excel to answer this question. Enter your answer as a percentage of par value. Round your answe to 4 decimal places. STRIPS price

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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Consider uhe following newly issued bonus. Inputs Tagliaferro Incorporated 10 Year Bond Settlement Date 1/1/2020 Rigsby and Pelt Corporation 5 Year Note 1/1/2020 Maturity Date 1/1/2030 1/1/2025 Coupon Rate 9.28% 4.27% Coupons per Year 2 2 Market Data Yield to Maturity 7.97% Risk-Free Rate 1.25% Required: Note: Use cells A2 to B12 from the given information to complete this question. Using any necessary data above, calculate the Macaulay Duration of each bond. Then, use the Macaulay Duration to solve for the Modified Duration. Tagliaferro Incorporated 10 Year Bond Rigsby and Pelt Corporation 5 Year Note Macaulay Duration Modified Duration
An American call option expiring in 3 - years has an exercise price of E1,500.00 on the Eswatini stockmarket and currently trades at E1,940.00. It is anticipated that the stock will rise by a factor of 1.10 andfell by a factor of 0.80. If the interest rate is 6%; find the upward prices of the option until its expiry andthe pay - offs a binomial tree.
H3. Show proper step by step calculation
Suppose you buy one SPX call option contract with a strike of 2200. At maturity, the S&P 500 index is at 2218. What is your net gain or loss if the premium you paid was $14? (Input the amount as a positive value.)
Assume oat forward prices over the next 3 years are $2.30, $2.40, and $2.33, respectively. Effective annual interest rates over the same period are 5.5%, 5.8%, and 6.1%. What is the 3-year swap price if the delivery in year 1 is 100,000 bushels, the delivery in year 2 is 125,000 bushels and the delivery in year 3 is 175,000 bushels?
You are given a nominal annual rate of discount of 12% convertible (compounded) quarterly. Determine the present value on 1/1/2010 of $20,000 to be paid on 1/1/2015. Hint: Let X be the value on 1/1/2010. The future value is $20,000. Recall for an effective rate of discount, d, A(t) = Ap*(1-d)t. You will need to adjust your formula to reflect the fact that the given rate is a nomi O $11,000 but $11,250
D3) Finance What is the current minimum possible value of an American put whose exercise price is 27 if the current price of the stock is 26.4. (the annual rate of interest is 24% and option’s remaining time to maturity is one month)
On January 1, you sold one February maturity S&P 500 Index futures contract at a futures price of 2,412. If the futures price is 2,480 at contract maturity, what is your profit? The contract multiplier is $50. (Input the amount as positive value.)
Suppose you sell seven March 2021 silver futures contracts on December 4, 2020, at the last price of the day. Use Table 25.2. a. What will your profit or loss be if silver prices turn out to be $25.01 per ounce at expiration? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will your profit or loss be if silver prices are $23.13 per ounce at expiration? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. b.
Suppose we enter into a 76-day T-bill futures contract quoted at 0.021. The notional amount is $1,000. What is the actual price?
U.S. Treasury STRIPS, close of business February 15, 2019: Maturity Price Maturity Feb 2020 97.123 Feb 2021 94.770 Feb 2022 92.424 Feb 2023 Feb 2024 Feb 2025 STRIPS Feb 20 STRIP: Feb 21 STRIP: Feb 22 STRIP: Feb 23 STRIP: Feb 24 STRIP: Feb 25 STRIP: a. Calculate the quoted yield for each of the STRIPS given in the table above. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) Quoted yield Price 90.066 87.528 85.410 % % % % % % +

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