The table shows term to maturity of Australian bonds and their respective yields on 22 April 2021. Using this information answer the following questions. Will the market interest rate increase or decrease in the future? Explain clearly. Term to Maturity Bond Yield 1 year 0.07% 2 years 0.07% 5 years 0.70% 10 years 1.66% 20 years 2.42% 30 years 2.64%

The table shows term to maturity of Australian bonds and their respective yields on 22 April 2021. Using this information answer the following questions. Will the market interest rate increase or decrease in the future? Explain clearly. Term to Maturity Bond Yield 1 year 0.07% 2 years 0.07% 5 years 0.70% 10 years 1.66% 20 years 2.42% 30 years 2.64%

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 2EP

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The table shows term to maturity of Australian bonds and their respective yields on 22 April 2021. Using this information answer the following questions. What do you think is the shape of the yield curve? Explain your answer. Term to Maturity Bond Yield 1 year 0.07% 2 years 0.07% 5 years 0.70% 10 years 1.66% 20 years 2.42% 30 years 2.64%
Use the information in the table below for this question. All the interest rates are annual percentage rates (APRS). в Annual Yields U.S. Treasury Bonds as of October 23rd, 2018 A. Maturity I Month 3 Month Today 2.21% 4 2.33% 6 Month 2.48% 1 Year 2 Year 6. 2.67% 2.89% 8. 3 Year 2.95% Calculate the annual the forward rate of 3-month T-bills based on the 3-month and 6-month treasury yields. Which of the following Excel formulas is correct? (1+85)/(1+B4)-1 ((1+85)/(1+B4/2)-1) 2 ((1+B5/2)/(1+B4/4)-1)4 =((1+85/2)/(1+B4/4)-1)
Consider a bond with semiannual interest payments that has a Settlement Date of 8/15/2020, a Maturity Date of 2/15/2031, a Coupon Rate of 5.00%, a Market Price of $975, a Face Value of $1,000, and a Required Return of 5.35%. What is the Macaulay Duration using the Duration function on these bonds expressed as a decimal calculated to two decimal places if you purchase them at the current market price? For example, if your answer is 12.345 then enter as 12.35 in the answer
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Maturity Mo/Yr Ask Yld Rate Bid Asked 103.5462 103.5340 Chg ?? May 29 5.999 104.4952 104.6409 +.4293 6.252 May 34 ?? +.5405 6.163 May 44 ?? ?? 4.031 a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars? (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 .0654, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Asked price b. Bid price +.3015
This question is based on the following information on a bond: [ Bond Principal: R 5000000 Issue date: 30 June 2021 Maturity date: 15 September 2026 Coupon rate: 7.00% Coupon payment dates: 30 June and 31 December. The bond register closes one month before the coupon payment dates]. Suppose that the bond traded at a market price of R 103.475% for settlement on 10 December 2021 . The number of days from 30 June 2021 to 10 December 2021 is 163 and the number of days from 10 December 2021 to 31 December 2021 is 21 . What is the running yield on the bond? (note: if the answer is 5.55%, answer 5.55). Answer: Answer
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Rate ?? 5.324 6.173 Maturity Mo/Yr May 29 a. Asked price b. Bid price May 34 May 44 Bid Asked 103.5488 103.5366 104.4978 104.6435 ?? Chg +.3041 +.4317 ?? +.5431 Ask Yld 6.039 ?? 4.071 a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars? (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 .0538, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Refer to Figure and look at the Treasury bond maturing in February 2036.a. How much would you have to pay to purchase one of these bonds? b. What is its coupon rate? c. What is the yield to maturity of the bond?
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 ?? 6.252 6.163 Maturity Month/Year May 36 May 41 May 51 a. Asked price b. Bid price Bid Asked 103.5462 103.5340 104.4952 104.6409 ?? ?? Change Ask Yield +.3015 5.999 +.4293 ?? +.5405 4.031 a. In the above table, find the Treasury bond that matures in May 2051. 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 .0654, 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.
Please answer using excel A 6% German corporate bond is priced for settlement on 18 June 2019. The bond makes semiannual coupon payments on 19 March and 19 September of each year and matures on 19 September 2030. The corporate bond uses the 30/360 day-count con- vention for accrued interest. Calculate the full price, the accrued interest, and the flat price per EUR100 of par value for three stated annual yields-to-maturity: (A) 5.80%, (B) 6.00%, and (C) 6.20%.
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. Asked Rate ??question mark 5.524 6.193 Maturity Month/Year May 34 May 37 May 43 Bid 103.4690 104.5030 ??question mark 103.5418 104.6487 ??question mark Change Ask Yield +.3093 6.119 +.4365 ?? +.5483 4.151 In the above table, find the Treasury bond that matures in May 2037. What is your yield to maturity if you buy this bond?
Calculate the market price of each bond on 24th September 2020 that issued by North Polar , a European company specialises in manufacturing semiconductors, using the yield curve data provided in the table above. What is the current total value of minimum application? Issuer North Polar Ltd. Issuing date 24th September 2020 Bond expiration date 24th September 2025 Face value € 1000 per bond. Minimum application 50 Bonds (€ 50,000) Interest rate Floating Interest Rate. The Interest Rate is the sum of the Market Rate plus the Margin. Coupon rate (annual) Central Government Bond Yield + 1.86% p.a. Coupon payment Annually (coupon payment is paid on 10th July every year) Market Yield 4.5%
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 ?? 6.302 6.168 Maturity Month/Year May 29 May 32 May 38 Yield to maturity Asked Bid 103.4625 103.5353 104.4965 104.6422 ?? ?? In the above table, find the Treasury bond that matures in May 2032. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. = Change Ask Yield +.3028 6.019 ?? +.4305 +.5418 4.051 %