The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Gilts Prices Close of Business 7th January 2018 Maturity Date Coupon Rate Coupon Payment Dates Yield to Maturity 07/04/2022 3.75% 7th April, 7th October 0.784735% 20/08/2027 1.70% 20th February, 20th August 1.394042% 07/06/2035 4.00% 7th June, 7th December 1.868424% The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. Calculate the accrued interest and dirty prices for each bond at the close of business on 7th January 2018.
The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Gilts Prices Close of Business 7th January 2018 Maturity Date Coupon Rate Coupon Payment Dates Yield to Maturity 07/04/2022 3.75% 7th April, 7th October 0.784735% 20/08/2027 1.70% 20th February, 20th August 1.394042% 07/06/2035 4.00% 7th June, 7th December 1.868424% The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. Calculate the accrued interest and dirty prices for each bond at the close of business on 7th January 2018.
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 table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018.
|
Gilts Prices Close of Business 7th January 2018 |
|||
|
Maturity Date |
Coupon Rate |
Coupon Payment Dates |
Yield to Maturity |
|
07/04/2022 |
3.75% |
7th April, 7th October |
0.784735% |
|
20/08/2027 |
1.70% |
20th February, 20th August |
1.394042% |
|
07/06/2035 |
4.00% |
7th June, 7th December |
1.868424% |
The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months.
- Calculate the accrued interest and dirty prices for each bond at the close of business on 7th January 2018.
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