If a broker quotes a price of 111.25 for a bond on September 10, what amount will a client pay per $1,000 face value? The 7% coupon rate is payable on May 15 and November 15 of each year.
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If a broker quotes a price of 111.25 for a bond on September 10, what amount will a client pay per $1,000 face value? The 7% coupon rate is payable on May 15 and November 15 of each year.
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- Suppose that today’s date is April 15. A bond with a 10% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.25. If you buy the bond from a dealer today, what price will you pay for it?Suppose that today’s date is April 15. A bond with a 8% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.0938 percent of par. If you buy the bond from a dealer today, what price will you pay for it? (Round your answer to 2 decimal places.) invoice price?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 $1,030.5.)
- 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.)A semi-annual payment bond pays interest on May 15 and November 15. If the coupon rate is 4%, what is the accrued interest for settlement day on June 27? Assume a day convention of 30/360 and a par value of $100.Suppose that today’s date is April 15. A bond with a 7% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.5000 percent of par. If you buy the bond from a dealer today, what price will you pay for it? Note: Round your answer to 2 decimal places.
- Today an investor purchases a 30-year bond (face value =\$1,000) for $627.73. The bond has a coupon rate of 4% and a yield to maturity of 7%. It pays coupons annually (not semiannually). The investor plans to hold the bond for 1 year. If the yield to maturity of the bond becomes 8% at the end of the year, what is the bond rate of return over the year?On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 8.2s45" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 7.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices $1,029.11 $1,034.52 $1,033.68 $1,030.95 $1,032.06On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 5.8% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) $1.152.74 O $1,15411 $1.155.30 $1.156.25 O$1,158.85
- The face value of a bond is $3000.00. The firm offering the bond pays 1% of the sales price to the selling agency and will pay $300.00 to the buyer every year. The bond matures in ten years and the firm pays $3000.00 to the buyer at the end of the tenth year. What is the effective rate of return on this bond to the firm offering it?On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 5.6s34" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 6.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices a. $883.78 b. $889.60 c. $885.22 d. $886.60 e. $887.12You purchase a bond with a coupon rate of 7.6 percent, a par value of $1,000, and a clean price of $910. If the next semiannual coupon payment is due in five months, what is the invoice price?
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