PC Bond Indices on 2015.02.26 Data provided by: National Post Index Level 1,000.21 683.94 1,084.71 1,602.71 216.66 973.78 873.24 1,170.03 1,223.77 1,103.18 154.48 Average Yield 1.73 Daily Total Return -0.22 Daily Price Return -0.23 -0.12 -0.27 -0.34 -0.22 -0.25 -0.22 -0.29 -0.25 Bond Index Universe MTD Total Retum -0.52 -0.16 -0.48 Short Mid Long Canada All Gov't Federal Provincial Municipal All Corp Maple RRB 91 day T-bill Source: financialpost.com/markets/ data/bonds-pc.html. Feb 27, 2015; Material reprinted with the express permission of National Post, a division of 1.01 1.66 2.68 1.01 154 1.06 2.04 1.98 222 1.97 -0.04 0.57 -0.11 -0.25 -0.33 -0.21 -0.24 -0.21 -0.28 -0.24 -0.17 -0.15 -0.08 -1 -0.75 -0.65 -0.67 -0.63 -0.61 -0.21 0.02 -0.75 0.04 -0.18 -0.16 -0.06 na. 574.55 399 15 Postmedia Network Inc. Canadian Bonds on 2015.02.27 Data provided by: National Post Federal Maturity Date Jun 01/17 Sep 01/17 Jun 01/18 Jun 01/19 Jun 01/20 Mar 15/21 Jun 01/21 Jun 01/21 Jun 01/22 Jun 01/23 Jun 01/24 Jun 01/25 Jun 01/27 Corporate Maturity Date Feb 15/17 Mar 16/18 Mar 16/35 Mar 28/18 Mar 09/20 Jan 18/18 Jun 01/16 Sep 10/19 Jun 21/17 Aug 13/20 May 20/36 Mar 13/37 Jun 18/20 Jun 09/34 Jan 18/36 Apr 08/19 Dec 15/36 Mar 22/21 Aug 25/40 May 22/18 Mar 26/37 Jan 30/18 Bid $ Yield % 107.91 0.46 102.53 Bid $ Yield % 1.43 1.51 4.19 Coupon Сoupon 4 1.5 4.25 3.75 3.5 10.5 9.75 3.25 9.25 1.5 2.5 Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada CHT Bell Bell Bell BMO Enbridge Encana GE CAP GE CAP GWLife GWLife HydOne HydOne Loblaw Loblaw Loblaw Manulife Manulife Rogers Rogers Suncor Suncor SunLife 106.87 4.4 6.1 6.17 4.53 5.8 5.1 5.68 5.691 4.65 5.36 4.89 5.22 6.05 5.9 7.768 5.059 5.34 6.11 5.8 5.39 5.59 108.53 125.76 0.48 111.99 0.52 113.15 113,89 1.52 0.61 113.91 0.79 156.86 0.82 154.32 0.81 114.5 111.24 2.16 111.04 184 104.9 117.91 1.13 1.56 0.86 157.96 0.45 102.88 1.13 110.95 124 173.71 1.3 173.32 109.28 1.57 114.46 1.85 131.99 3.26 8 5.75 5.75 5 4 124.15 115.98 123.48 122.71 3.33 2.02 4.25 4.25 1.45 Jun 01/29 Jun 01/33 Jun 01/37 Jun 01/41 Jun 15/21 Provincial Provincial Jun 18/37 Feb 15/40 Feb 15/45 Jun 01/27 Mar 08/18 Sep 08/23 Sep 01/18 Jan 16/23 152.12 1.63 161.04 1.81 155.97 1.9 123.43 1.81 141.7 1.96 3.94 116.3 117.32 2.26 3.8 115.18 128 125.95 4.41 Coupon 4.7 6. Bid $ Yield % 134.33 113.24 1.57 123.37 3.81 109.75 2.12 BC HydQue HydQue Novasc 155.74 142.36 145.2 109.87 149.32 2.65 2.86 2.88 2.33 0.88 1.82 Ontario Ontario Quebec Quebec 6.6 4.2 8.1 4.5 112.99 0.96 9.375 155.99 1.74 5466 5555 545 65755 6555 62152
PC Bond Indices on 2015.02.26 Data provided by: National Post Index Level 1,000.21 683.94 1,084.71 1,602.71 216.66 973.78 873.24 1,170.03 1,223.77 1,103.18 154.48 Average Yield 1.73 Daily Total Return -0.22 Daily Price Return -0.23 -0.12 -0.27 -0.34 -0.22 -0.25 -0.22 -0.29 -0.25 Bond Index Universe MTD Total Retum -0.52 -0.16 -0.48 Short Mid Long Canada All Gov't Federal Provincial Municipal All Corp Maple RRB 91 day T-bill Source: financialpost.com/markets/ data/bonds-pc.html. Feb 27, 2015; Material reprinted with the express permission of National Post, a division of 1.01 1.66 2.68 1.01 154 1.06 2.04 1.98 222 1.97 -0.04 0.57 -0.11 -0.25 -0.33 -0.21 -0.24 -0.21 -0.28 -0.24 -0.17 -0.15 -0.08 -1 -0.75 -0.65 -0.67 -0.63 -0.61 -0.21 0.02 -0.75 0.04 -0.18 -0.16 -0.06 na. 574.55 399 15 Postmedia Network Inc. Canadian Bonds on 2015.02.27 Data provided by: National Post Federal Maturity Date Jun 01/17 Sep 01/17 Jun 01/18 Jun 01/19 Jun 01/20 Mar 15/21 Jun 01/21 Jun 01/21 Jun 01/22 Jun 01/23 Jun 01/24 Jun 01/25 Jun 01/27 Corporate Maturity Date Feb 15/17 Mar 16/18 Mar 16/35 Mar 28/18 Mar 09/20 Jan 18/18 Jun 01/16 Sep 10/19 Jun 21/17 Aug 13/20 May 20/36 Mar 13/37 Jun 18/20 Jun 09/34 Jan 18/36 Apr 08/19 Dec 15/36 Mar 22/21 Aug 25/40 May 22/18 Mar 26/37 Jan 30/18 Bid $ Yield % 107.91 0.46 102.53 Bid $ Yield % 1.43 1.51 4.19 Coupon Сoupon 4 1.5 4.25 3.75 3.5 10.5 9.75 3.25 9.25 1.5 2.5 Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada CHT Bell Bell Bell BMO Enbridge Encana GE CAP GE CAP GWLife GWLife HydOne HydOne Loblaw Loblaw Loblaw Manulife Manulife Rogers Rogers Suncor Suncor SunLife 106.87 4.4 6.1 6.17 4.53 5.8 5.1 5.68 5.691 4.65 5.36 4.89 5.22 6.05 5.9 7.768 5.059 5.34 6.11 5.8 5.39 5.59 108.53 125.76 0.48 111.99 0.52 113.15 113,89 1.52 0.61 113.91 0.79 156.86 0.82 154.32 0.81 114.5 111.24 2.16 111.04 184 104.9 117.91 1.13 1.56 0.86 157.96 0.45 102.88 1.13 110.95 124 173.71 1.3 173.32 109.28 1.57 114.46 1.85 131.99 3.26 8 5.75 5.75 5 4 124.15 115.98 123.48 122.71 3.33 2.02 4.25 4.25 1.45 Jun 01/29 Jun 01/33 Jun 01/37 Jun 01/41 Jun 15/21 Provincial Provincial Jun 18/37 Feb 15/40 Feb 15/45 Jun 01/27 Mar 08/18 Sep 08/23 Sep 01/18 Jan 16/23 152.12 1.63 161.04 1.81 155.97 1.9 123.43 1.81 141.7 1.96 3.94 116.3 117.32 2.26 3.8 115.18 128 125.95 4.41 Coupon 4.7 6. Bid $ Yield % 134.33 113.24 1.57 123.37 3.81 109.75 2.12 BC HydQue HydQue Novasc 155.74 142.36 145.2 109.87 149.32 2.65 2.86 2.88 2.33 0.88 1.82 Ontario Ontario Quebec Quebec 6.6 4.2 8.1 4.5 112.99 0.96 9.375 155.99 1.74 5466 5555 545 65755 6555 62152
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
Concept explainers
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
Question
Refer to bond quotes in Figure 7.4 below. Calculate the price of the Canada Jun 01/18 to prove that it is 111.99 as shown. Assume that today is February 27, 2015. Assume the par value of a bond is $1,000. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Transcribed Image Text:FIGURE 7.4
Sample bond quotations
PC Bond Indices on 2015.02.26
Data provided by: National Post
Average Yield
1.73
Daily Total Return
-0.22
-0.11
-0.25
-0.33
-0.21
-0.24
-0.21
-0.28
-0.24
-0.17
-0.15
-0.08
Bond Index
Universe
Index Level
1,000.21
683.94
1,084.71
1,602.71
216.66
973.78
873.24
1,170.03
1,223.77
1,103.18
154.48
574.55
Daily Price Return
-0.23
-0.12
-0.27
-0.34
-0.22
-0.25
-0.22
-0.29
-0.25
-0.18
-0.16
-0.06
MTD Total Retum
-0.52
-0.16
-0.48
-1
-0.75
-0.65
-0.67
-0.63
-0.61
-0.21
0.02
-0.75
0.04
Short
Mid
1.01
Long
Canada
All Gov't
Federal
Provincial
Municipal
All Corp
Maple
RRB
91 day T-bill
Source: financialpost.com/markets/ data/bonds-pc.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a division of
1.66
2.68
1.01
1.54
1.06
2.04
1.98
2.22
1.97
-0.04
0.57
399.15
n.a.
Postmedia Network Inc.
Canadian Bonds on 2015.02.27
Data provided by: National Post
Federal
Maturitų Date
Jun 01/17
Sep 01/17
Jun 01/18
Corporate
Maturity Date
Feb 15/17
Mar 16/18
Mar 16/35
Mar 28/18
Mar 09/20
Jan 18/18
Jun 01/16
Sep 10/19
Jun 21/17
Aug 13/20
May 20/36
Mar 13/37
Jun 18/20
Jun 09/34
Jan 18/36
Apr 08/19
Dec 15/36
Mar 22/21
Aug 25/40
May 22/18
Mar 26/37
Jan 30/18
Bid $ Yield %
107.91
Bid $
106.87
108.53
125.76
113.89
111.24
111.04
104.9
117.91
109.28
114.46
131.99
124.15
115.98
123.48
122.71
123.43
116.3
117,32 2,26
125.95 4.41
Yield %
1.43
1.51
4.19
Сoupon
Сoupon
Bell
Bell
Bell
BMO
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
CHT
0.46
1.5
4.25
3.75
3.5
10.5
9.75
3.25
9.25
1.5
2.5
4.4
6.1
6.17
4.53
5.8
5.1
5.68
5.691
4.65
5.36
4.89
5.22
6.05
5.9
7.768
5.059
5.34
102,53
0.48
111.99 0.52
113.15 0.61
113.91 0.79
156.86 0.82
154.32 0.81
114.5
1.52
2.16
1.84
1.13
Jun 01/19
Jun 01/20
Mar 15/21
Jun 01/21
Jun 01/21
Jun 01/22
Jun 01/23
Jun 01/24
Jun 01/25
Jun 01/27
Jun 01/29
Jun 01/33
Jun 01/37
Jun 01/41
Jun 15/21
Provincial
Provincial
Jun 18/37
Feb 15/40
Enbridge
Encana
GE CAP
GE CAP
GWLife
GWLife
1.56
0.86
157.96 0.95
102.88 1.13
110.95 1.24
173.71
1.57
1.85
3.26
3.33
2.02
4.25
4.25
1.81
3.94
HydOne
HydOne
Loblaw
1.3
173.32
1.45
5.75
5.75
1.63
161.04 1.81
155.97
Loblaw
Loblaw
Manulife
Manulife
Rogers
Rogers
Suncor
Suncor
SunLife
152.12
1.9
4
141.7
1.96
3.8
115.18
1.28
6.11
Bid $
134.33
155.74
142.36
145.2
109.87
149.32
112.99
155.99
Coupon
4.7
Yield %
2.65
2.86
2.88
2.33
0.88
1.82
0.96
5.8
5.39
5.59
113.24 1.57
BC
HydQue
HydQue
Novasc
123.37
3,81
109.75
2.12
6.6
4.2
8.1
4.5
Feb 15/45
Jun 01/27
Mar 08/18
Sep 08/23
Sep 01/18
Jan 16/23
Ontario
Ontario
Quebec
Quebec
9.375
1.74
Source: financialpost.com/markets/data/bonds-canadian.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a
12g8O555 t3
6564t 004
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