Problem 6-29 Bond Prices [LO 2]You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currentlyMay 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons.Rate225.5246.193MaturityMonth/YearMay 32May 37May 47Bid103.5540104.503022a. Asked priceb. Bid priceAnked103.5418104.648722Change Ask Yield6.119+.3093+.436527+.54834.151a. In the above table, find the Treasury bond that matures in May 2047. What is the asked price of this bond in dollars?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.b. If the bid-ask spread for this bond is 0566, what is the bid price in dollars?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

A bond is a type of debt security that is issued by a borrower to raise funds, It carries a fixed…

Problem 6-29 Bond Prices [LO 2] You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.524 6.193 Maturity Month/Year May 32 May 37 May 47 a. Asked price b. Bid price Bid 103.5540 104.5030 27 Anked 103.5418 104.6487 77 Change +.3093 +.4365 +.5483 Ask Yield 6.119 27 4.151 a. In the above table, find the Treasury bond that matures in May 2047. What is the asked price of this bond in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16. b. If the bid-ask spread for this bond is .0566, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Problem 6-29 Bond Prices [LO 2] You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.524 6.193 Maturity Month/Year May 32 May 37 May 47 a. Asked price b. Bid price Bid 103.5540 104.5030 27 Anked 103.5418 104.6487 77 Change +.3093 +.4365 +.5483 Ask Yield 6.119 27 4.151 a. In the above table, find the Treasury bond that matures in May 2047. What is the asked price of this bond in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16. b. If the bid-ask spread for this bond is .0566, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

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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QUESTION 1 MaNga Inc. bonds have a current market price of $1,128.87 the bonds have an 9% annual coupon payment, a $1,000 face value, and 12 years left until maturity. The bonds may be called in 3 years at $1,125. What yield might investors expect to eam on these bonds? @7% 4.42% 7.16% 4.33%
Problem 6-23 Real Returns (LO3) Suppose that you buy a TIPS (inflation-indexed) bond with a 2-year maturity and a (real) coupon of 4.4% paid annually. If you buy the bond at its face value of $1,000, and the inflation rate is 8.60% in each year. a. What will be your cash flow in year 1? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Cash flow b. What will be your cash flow in year 2? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Cash flow c. What will be your real rate of return over the two-year period? Note: Enter your answer as a percent rounded to 1 decimal place.
Ins 8. Suppose that today's interest rate on 1-year bonds is 4% (i10 year bonds next year, in two years, and in three years are expected to be 5%, 6%, and 7%, respectively. 0.04). Interest rates on 1- ha a. According to the Expectations Theory of Term Structure, what are the equilibrium interest rates today for otherwise comparable 2-year, 3-year, and 4-year bonds? b. Draw the yield curve for that case. or
Problem 29 You have until 9:00 PM to complete this assignment. Intro A corporate bond pays interest annually and has 3 years to maturity, a face value of $1,000 and a coupon rate of 3.8%. The bond's current price is $1,002.79. It is callable at a call price of $1,050 in one year. Part 1 What is the bond's yield to maturity? 4+ decimals Save Part 2 What is the bond's yield to call? 3+ decimals Save Attempt 1/1 Attempt 1/1
D & R A1 8 - 1 Question 8. Cheapest-to-Deliver Bond Today is July 1. You hold a November Treasury bond futures contract with a price of 92:15 (i.e., 92 plus [15/32]), with a delivery date of November 15 in the same year. You have identified the two bonds below that could be used for delivery against the futures contract: Bond A Bond B Maturity 26.5 years 31 years Coupon rate 5% 8.5% Asking price 93:2 144:13 Coupon dates April 15, October 15 June 15, December 15 Callable? No No Assume that the next year is not a leap year, and that the market repo rate is 5.50%. Find the conversion factors for Bond A and Bond B. Use the downloadable Excel spreadsheet on the Chicago Mercantile Exchange (CME) website: http://www.cmegroup.com/trading/interest-rates/us-treasury-futures-conversion-factor-lookup-tables.html.
Q 20 Calculate the price of a 5.7 percent coupon bond with 22 years left to maturity and a market interest rate of 6.5 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.) BOND PRICE_______ Is this a discount or premium bond?multiple choice premium bond discount bond
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11 3 N Pont You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Hilliams Company (HICO) Coupon 7.200 7.300 77 Coupon rate Maturity January 15, 2039 January 15, 2033 January 15, 2035 Last Price Last Yield. 94.399 77 94.915 ?? 6.38 7,20 Estimated S Volume (0000) 57,380 48,959 43,820 What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.
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Question 5 0/1 Oscorp has just issued its Norman Special Long Bond. The bonds have a maturity of 25 years, a coupon rate of 0.50% and pay the coupon on a semi-annual basis. The face value of the bond is $1000. The bonds are trading at a YTM of 5.00%. What is the current yield of these? (Enter your answer as a % accurate to two decimal points. DO NOT add a % symbol or any extraneous punctuation.)
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