ABC entered into 5 long futures contract for SMC bonds. The standard size is 1,000 pieces of P1,000 face value bonds. The agreed price is P950. On the agreed date, the market value of a piece of bond is P940. * Compute for the net gain or loss ?
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ABC entered into 5 long futures contract for SMC bonds. The standard size is 1,000 pieces of P1,000 face
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- This question is based on the following information on a bond: [ Bond Principal: R 5000000 Issue date: 30 June 2021 Maturity date: 15 September 2026 Coupon rate: 7.00% Coupon payment dates: 30 June and 31 December. The bond register closes one month before the coupon payment dates]. Suppose that the bond traded at a market price of R 103.475% for settlement on 10 December 2021 . The number of days from 30 June 2021 to 10 December 2021 is 163 and the number of days from 10 December 2021 to 31 December 2021 is 21 . What is the running yield on the bond? (note: if the answer is 5.55%, answer 5.55). Answer: AnswerA brand has bonds on the market with 19 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,206.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? A. 13.71% B. 13.61% C. 27.27% D. 11.28% E. 22.60%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 Dec 15, 2013 Maturity date Dec 15, 2043 Purchase date June 15, 2023 Coupon rate (%) Market rate (%) 5.00 6.4 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
- A bond has a par value of $1.000 a cument yield of 693 percent, and semiannual coupon payments. The bond is quoted at 101.56 What is the amount of each coupon payment? O O O O O $360 42038 SJAASWhat is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100’160? If interest rates increased by 1%, what wouldbe the contract’s new value?Calculate the BEY for each of the following two 270-day securities. Instrument T: Quoted on 365 days at a rate of 3.2% Instrument U: using an add on rate of 360 days at 5.6% Calculate the bonds equivalent yield of each and compare the two results. Bond price is 1000
- The 12-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market's required yield to maturity on a comparable-risk bond is 12 percent. The current market price for the bond is $850. a. Determine the yield to maturity. b. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? c. Should you purchase the bond at the current market price? Question content area bottom Part 1 a. What is your yield to maturity on the Vail bonds given the current market price of the bonds? enter your response here% (Round to two decimal places.)I need both answers(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 19-year, $1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is $925, and the market's required yield to maturity on a comparable-risk bond is 14 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond?
- (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 16-year, $1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is $855, and the market's required yield to maturity on a comparable-risk bond is 15 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond? C a. What is your yield to maturity on the Waco bonds given the current market price of the bonds? % (Round to two decimal places.)All bonds considered below have a face value of $1000. The two-year zero-coupon bond is trading at $905.13 while the two-year bond with annual coupon rate 7% is trading at $1035.9. In the absence of arbitrage, what is the fair price of the one-year zero-coupon bond?Caiculate 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 Dec 15, 1991 Maturity date Dec 15, 2026 Purchase date ১une 15, 2013 Coupon rate (XY 5.50 Market rate (X). 7,4 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
