Today is 1 July, 2019. Chrissi has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Chrissi purchased all instruments on 1 July 2010 to create this portfolio, which is composed of 32 units of instrument A and 42 units of instrument B. • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. • Instrument B is a Treasury bond with a coupon rate of j2 = 3.42% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January
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- Today is 1 July, 2019. Camilla has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Camilla purchased all instruments on 1 July 2011 to create this portfolio, which is composed of 22 units of instrument A and 22 units of instrument B. • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. • Instrument B is a Treasury bond with a coupon rate of j2=3.46% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. What is the duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume a yield rate of j2=2.99% p.a. a. 4.834 years b. 2.876 years c. 5.753 years d. 2.417 yearsToday is 1 July, 2019. Siobhán has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhán purchased all instruments on 1 July 2012 to create this portfolio, which is composed of 34 units of instrument A and 28 units of instrument B. • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. • Instrument B is a Treasury bond with a coupon rate of J₂=4.18% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current duration of Siobhán's portfolio using a yield to maturity of j₂=4.52% p.a. Express your answer in terms of years and round your answer to two decimal places. O a. 5.23 years b. 7.00 years O c. 5.56 years O d. 6.49 yearsToday is 1 July, 2019. Hélène has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Hélène purchased all instruments on 1 July 2012 to create this portfolio, which is composed of 21 units of instrument A and 45 units of instrument B. • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. • Instrument B is a Treasury bond with a coupon rate of j2 = 2.02% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ = 2.8% p.a. and Hélène has just received her coupon payment. a. $98.1293 b. $99.1393 c. $92.9465 O d. $97.7705
- Today is 1 July, 2019. Katrina has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Katrina purchased all instruments on 1 July 2011 to create this portfolio, which is composed of 28 units of instrument A and 44 units of instrument B. • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. • Instrument B is a Treasury bond with a coupon rate of j2 = 2.16% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current price of instrument A per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 = 4.03% p.a. O a. $47.2049 O b. $48.7635 O c. $49.7461 O d. $68.4516Today is 1 July, 2019. Hélène has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Hélène purchased all instruments on 1 July 2012 to create this portfolio, which is composed of 30 units of instrument A and 50 units of instrument B. Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. Instrument B is a Treasury bond with a coupon rate of j2 = 3.46% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 = 3.52% p.a. and Hélène has just received her coupon payment. a.$99.8306 b.$99.8576 c.$101.5876 d.$99.4771Today is 1 July 2020. Siobhán has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhán purchased all instruments on1 July 2011 to create this portfolio and this portfolio is composed of 26 units of instrument A and 45 units of instrument B. Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. Instrument B is a Treasury bond with a coupon rate of = 4.9% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023. Calculate the current duration of Siobhán's portfolio using a yield to maturity of = 4.39% p.a. Express your answer in terms of years and round your answer to two decimal places. a. 4,34 b. 5.73 c. 6.42 d. 4.13
- Today is 1 July 2021. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2016 to create this portfolio and this portfolio is composed of 242 units of instrument A and 455 units of instrument B. Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. Instrument B is a Treasury bond with a coupon rate of j2 = 3.14% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2024. (a) Calculate the current price of instrument A per $100 face value (today's value). Round your answer to four decimal places. Assume the yield rate is j2 =3.93% p.a.On 1 July 2018 MalekaLtd issues $6million in six-year debentures that pay interest each six months at a coupon rate of 8 per cent. At the timeof issuing the securities, the investors requiredrate of return was 6 per cent. Interest expense is determined using the effective-interest method. REQUIRED (i)Determine the issue price of the debenture (ii)Will thedebenture be issued at premium or discount?Why? (iii)Provide the journal entries at:1 July 2018, 30 June 2019, & 30 June 2020.David Palmer identified the following bonds for investment: 1. 1) Bond A: A $1 million par, 10% annual coupon bond, which will mature on July 1, 2025. 2. 2) Bond B: A $1 million par, 14% semi-annual coupon bond (interest will be paid on January 1 and July 1 each year), which will mature on July 1, 2031. 3. 3) Bond C: A S1 million par, 10% quarterly coupon bond (interest will be paid on January 1, April 1, July 1, and October 1 each year), which will mature on July 1, 2026. The three bonds were issued on July 1, 2011. (a) If Bond B is issued at face value and both Bond Band Bond A are having the same yield to maturity (EAR) at issuance, calculate the market price of Bond A on July 1, 2011.
- A bond issued on February 1, 2004 with face value of $34400 has semiannual coupons of 7.5%, and can be redeemed for par (face value) on February 1, 2019. What is the accrued interest and the market price (the "clean" price) of the bond on November 15, 2006, if the bond's yield on that date is to be 8.5% ? (use actual/actual for accrued interest). Problem #1: accrued interest and market price (in that order), separated with a comma both answers correct to 2 decimalsAssume a firm issues a zero-coupon bond on 1/1/2021. The face value is $5,000,000, and the effective rate is 4.1%, compounded annually over the 20 years of the bond i. Make the amortization table ii. Make the journal entry to issue the bonds on 1/1/2021iii. Make the entry to record interest on 12/31/2021 and 12/31/2022 iv. Make the entry to retire the principle of the bonds on 12/31/2040v. For every entry, record the effectsOn July 1, 2013 an investment manager purchased five-hundred $1,000 par value bonds with an 8.75% coupon rate for $467,000. The bonds mature on July 15, 2021. a. According to this information, would you expect that the rates being offered by similar investments on the open market carry a rate that is higher, or lower, than the coupon rate? Explain. b. Find the current yield AND the yield to maturity. Show your work.