Amount issued Offered Interest d Maturity ces Denomination, face value, or principal $ 600 million Issued at a price of 99.592 % plus accrued interest (proceeds to company 98.717%) through Citi and JPMorgan 5.85% per annum payable June 15 and December 15. June 15, 2041 $1,000 a. The AMAT bond was issued on June 8, 2011, at 99.592%. How much would you have to pay to buy one bond delivered on June 15? Don't forget to include accrued interest. Assume a 365-day year. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. b-1. When is the first interest payment on the bond? b-2. What is the total dollar amount of the payment? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. c-1. On what date do the bonds finally mature? c-2. What is the amount to be paid on each bond at maturity? Note: Do not round intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to 2 decimal places. a. Amount to be paid b-1. First interest due on % b-2. Amount of payment c-1. Maturity date c-2. Amount to be paid on maturity million
Amount issued Offered Interest d Maturity ces Denomination, face value, or principal $ 600 million Issued at a price of 99.592 % plus accrued interest (proceeds to company 98.717%) through Citi and JPMorgan 5.85% per annum payable June 15 and December 15. June 15, 2041 $1,000 a. The AMAT bond was issued on June 8, 2011, at 99.592%. How much would you have to pay to buy one bond delivered on June 15? Don't forget to include accrued interest. Assume a 365-day year. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. b-1. When is the first interest payment on the bond? b-2. What is the total dollar amount of the payment? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. c-1. On what date do the bonds finally mature? c-2. What is the amount to be paid on each bond at maturity? Note: Do not round intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to 2 decimal places. a. Amount to be paid b-1. First interest due on % b-2. Amount of payment c-1. Maturity date c-2. Amount to be paid on maturity million
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
Related questions
Question
\table[[Amount issued,$600 million],[offered,Issued at a price of 99.592% plus accrued interest (proceeds to company],[Interest,98.717% ) through Citi and JPMorgan],[Maturity,5.85% per annum payable June 15 and December 15.],[Denomination, face value, or principal,June 15,2041]] a. The AMAT bond was issued on June 8,2011 , at 99.592%. How much would you have to pay to buy one bond delivered on June 15 ? Don't forget to include accrued interest. Assume a 365-day year. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. b-1. When is the first interest payment on the bond? b-2. What is the total dollar amount of the payment? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. c-1. On what date do the bonds finally mature? c-2. What is the amount to be paid on each bond at maturity? Note: Do not round intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to 2 decimal places. \table[[a. Amount to be paid,,%
Transcribed Image Text:Amount issued
Offered
Interest
d
Maturity
ces
Denomination, face value, or principal
$ 600 million
Issued at a price of 99.592 % plus accrued interest (proceeds to company
98.717%) through Citi and JPMorgan
5.85% per annum payable June 15 and December 15.
June 15, 2041
$1,000
a. The AMAT bond was issued on June 8, 2011, at 99.592%. How much would you have to pay to buy one bond delivered on June 15?
Don't forget to include accrued interest. Assume a 365-day year.
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.
b-1. When is the first interest payment on the bond?
b-2. What is the total dollar amount of the payment?
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
c-1. On what date do the bonds finally mature?
c-2. What is the amount to be paid on each bond at maturity?
Note: Do not round intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to 2
decimal places.
a. Amount to be paid
b-1. First interest due on
%
b-2. Amount of payment
c-1. Maturity date
c-2. Amount to be paid on maturity
million
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