Suppose on January 15, 2018, the U.S. Treasury issued a ten-year inflation indexed note with a coupon of 4%. On the date of issue, the CPI (consumer price index January 15, 2028, the CPI index had decreased to 161. What principal and coupon payment was made on January 15, 2028? (Note: U.S. Treasury pays semi-annua The CPI index deppreciated by The principal payment is $ The coupon payment is $ (Round to five decimal places.) (Round to the nearest cent.) (Round to the nearest cent.)

Suppose on January 15, 2018, the U.S. Treasury issued a ten-year inflation indexed note with a coupon of 4%. On the date of issue, the CPI (consumer price index January 15, 2028, the CPI index had decreased to 161. What principal and coupon payment was made on January 15, 2028? (Note: U.S. Treasury pays semi-annua The CPI index deppreciated by The principal payment is $ The coupon payment is $ (Round to five decimal places.) (Round to the nearest cent.) (Round to the nearest cent.)

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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The average rate of return on a 182-day Government of Canada treasury bill sold on June 18, 2021, was 1.03%. A client sold the $100,000 T-bill after 69 days. What rate of return (per annum) did the client realize while holding the T-bill, if the short-term interest for this maturity had risen to 1.15% by the date of sale? Do not include the dollar sign in your answer. Do not include the comma usually used to denote thousands. Do not include the percent sign in your answer. a.) How much did the client pay for the T-bill on its issue date? b.) How much did the client sell the T-bill for? c.) What rate of return did the client realize on the T-bill? (Correct to exactly 4 decimal places.)
It is January 1st, 2020. A bank has five more years remaining in a currency swap according to which it makes annual interest payments at the end of each year at an effective annual rate of 4% on a 10,000,000USD principal and receives annual interest payments at the end of each year at an effective annual rate of 5% on a 13,500,00OCAD principal. The current USDCAD exchange rate is 1.35, compute the value of this currency swap for the bank based on the risk-free zero yields given below in continuously compounded form. 所喃| 1 year 2.6% З year 5 year 2 year 4 year CAD 2.8% 3% 3.1% 3.2% USD 3% 3.3% 3.6% 3.8% 4%
If the nine-month forward rate F9(Y/$) = 82, and the inflation rate in the U.S. and Japan are 1.6% and -0.8% respectively, what should be S(Y/$)?
What is the price of a U.S. Treasury bill with 36 days to maturity quoted at a discount yield of 7.76 percent? Assume a $500,000 face value.
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On December 1, 2015, the U.S. Treasury issued a $1,000, 10-year inflation indexed notes with a coupon rate of 2% (paid semi-annually on Dec 1 and June 1). On the date of issue, the consumer price index (CPI) was 231, but had increased to 259 on December 1, 2020. What was the amount of the coupon payment made on December 1, 2020? Select one: a. $10.46 b. $11.21 c. $20.00 d. $22.42 e. None of the above.
On April 1, $10,000.00 364-day treasury bills were auctioned off to yield 1.91%. (a) What is the price of each $10,000.00 T-bill on April 1? (b) What is the yield rate on July 19 if the market price is $9,813.45? (c) Calculate the market value of each $10,000.00 T-bill on September 24 if the rate of return on that date is 2.75%. (d) What is the rate of return realized if a $10,000.00 T-bill purchased on April 1 is sold on December 16 at a market rate of 2.796%1 (a) The price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Suppose inflation rates in the U.S. and France are expected to be 4% and 9%, respectively, next year and 6% and 7%, respectively, in the following year. If the current spot rate is $.1050, then the expected spot value of the franc in two years is a. $.1111 b. $.0992 c. $.1074 d. $.1024
Required Information On January 1, 2024, Avalanche Corporation borrowed $102,000 from First Bank by issuing a two-year, 8% fixed-rate note with annual interest payments. The principal of the note is due on December 31, 2025. • Avalanche wanted to hedge against declines in general interest rates, so it also entered into a two-year SOFR-based interest rate swap agreement on January 1, 2024, and designates it as a fair value hedge. Because the swap is entered at market rates, the fair value of the swap is zero at inception. • The agreement called for the company to receive fixed interest at the current SOFR swap rate of 5% and pay floating interest tied to SOFR. This arrangement results in an effective variable rate on the note of SOFR + 3%. • The contract specifies that the floating rate resets each year on June 30 and December 31 for the net settlement that is due the following period. In other words, the net cash settlement is calculated using beginning-of-period rates. The SOFR rates…
On April 1, $10,000.00 364-day treasury bills were auctioned off to yield 2.63%. (a) What is the price of each $10,000.00 T-bill on April 1? (b) What is the yield rate on August 21 if the market price is $9,772.94? (c) Calculate the market value of each $10,000.00 T-bill on October 14 if the rate of return on that date is 3.264%. (d) What is the rate of return realized if a $10,000.00 T-bill purchased on April 1 is sold on November 25 at a market rate of 3.61%?
Calculate the market price of the following treasury bill. issuer: Omani government. issue date: 6 June 2021. maturity date: 21 August 2021. The discount rate is 0.071.

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