Today is April 20, 2024. You plan to buy a Treasury bond that matures on 6/30/2030. The bond pays coupons semi- annually on January 1 and July 1 of each year. The Treasury bond has an annual coupon rate of 4.4 percent and pays coupons twice a year. If you buy the bond today, there are 72 days to the next coupon payment (out of the 184 days in the current semi-annual period). How much must you pay for the bond if you know the clean price of this bond is $1018.14? Upload Choose a File
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- Two years ago (i.e., in November 2018), you purchased a newly-issued 30-year Treasury bond with a coupon rate of 3.25% (APR with semi-annual compounding). The face value of the bond is $10,000 and you purchased it at the face value. The bond pays semi-annual coupons each November and each May. The coupon payment for November 2020 has just been made and you expect to obtain the next coupon payment exactly six months from today in May 2021. The bond matures after exactly 28 years in November 2048. The current yield to maturity (i.e., in November 2020) on this bond is 1.60% (APR with semi-annual compounding) due to the recent rate declines by the Federal Reserve and due to the slowdown of the economy. What is the current price of this bond?Today is December 1, 2019. A bond with a coupon rate of 7.6% has an invoice price of $1,088. The issue date on the bond is May 1, 2018, and the maturity date on the bond is May 1, 2028. The bond makes semi-annual coupon payments on May 1 and November 1. What is the clean price on this bond?On Monday March 6, 2023 you purchase a $1,000 Treasury bond that matures on May15, 2031 (settlement occurs one day after purchase, so you receive actual ownership of the bond on Tuesday March 7th, 2023). The coupon rate on the Treasury-note is 4.00 percent. The last coupon payment occurred on November 15, 2022, and the next coupon payment will be paid on May 15, 2023. The price that your dealer quotes you is $978.38 Yields on similar bonds are currently 4.5% Calculate the dirty price of this bond.
- 2. The quoted price of a bond with a coupon rate of 4.5%, payable semi-annually, maturing on March 1, 2023, is $990. The last coupon payment was made on March 1, 2019. If you buy the bond on July 1, 2019, what is the total price you must pay for the bond?A bond is issued on June 3, 2020. Maturity date is June 3, 2023. First semi-annual coupon payment is on December 3, 2020. The interest rate (per annum) is 0.4%. The face value is $1,000,000 (in thousands). The price of the bond is 998.60 (per $1000). 1) Determine the amount of each coupon payment per $1,000 of face value and the total number of coupon payments. 2) Calculate the yield to maturity. 3) Calculate the new price per $1,000 of face value if the yield to maturity increased by one percentage point (e.g., from 1.5% to 2.5%) immediately after issuance. Also calculate the percentage price change.Consider an investor who, on January 1, 2022, purchases a TIPS bond with an original principal of $115,000, an 10 percent annual (or 5 percent semiannual) coupon rate, and 10 years to maturity. a. If the semiannual inflation rate during the first six months is 0.3 percent, calculate the principal amount used to determine the first coupon payment and the first coupon payment (paid on June 30, 2022). b. From your answer to part a, calculate the inflation-adjusted principal at the beginning of the second six months. c. Suppose that the semiannual inflation rate for the second six-month period is 1.1 percent. Calculate the inflation-adjusted principal at the end of the second six months (on December 31, 2022) and the coupon payment to the investor for the second six-month period. (For all requirements, round your answers to 2 decimal places. (e.g., 32.16)) a. Principal amount Coupon payment b. Inflation-adjusted principal c. Inflation-adjusted principal at the end of the second six months…
- Lisa's new firm plans to issue a permanent callable bond with a par value of $1,000 and a nominal rate of 5% yearly. The nominal interest rate on these bonds will be 8% next year. Then a year from now, the bond's nominal interest rate will be 9% or 6% with the equal probability(50%). These bonds can be redeemed for $1350. If the bond is called when the interest rate decreases, calculate the callable bond price for today?Today an investor purchases a 30-year bond (face value =\$1,000) for $627.73. The bond has a coupon rate of 4% and a yield to maturity of 7%. It pays coupons annually (not semiannually). The investor plans to hold the bond for 1 year. If the yield to maturity of the bond becomes 8% at the end of the year, what is the bond rate of return over the year?On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 8.2s45" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 7.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices $1,029.11 $1,034.52 $1,033.68 $1,030.95 $1,032.06
- Assume that a 10-year bond pays interest of $55 every six months and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12.34 percent. Given this information, determine the expected total dollar price appreciation for this bond if you buy it today, hold it for 2 ½ years, and interest rates go down to 11.47 percent by the time you sell the bond. Answer choices: $39.56 $45.80 $59.51 $36.69 $52.57 Please answer fast I give you upvoteIt is now January 1, 2019, and Morgan Bush is considering the purchase of an outstanding bond that was issued on January 1, 2013. The bond has a 20-year original maturity and an 8 percent annual coupon (paid semiannually). The bond has call protection for 10 years, after which the bond can be called for 104 percent of par (or $1040). Interest rates have increased since the bond was issued, so the bond is now selling at $980. Which of the following statements is most CORRECT? a. The yield to maturity is 8.24%. If rates on new bonds of this type decrease by 2 percent four years from now, the bond will probably be called. b. The yield to call is 9.46 percent and the yield to maturity of 8.24 percent. SInce the YTC is greater than the YTM, the bond will probably not be called c. The yield to call is only 4.73 percent, so if rates do not change in the next 4 years, the bond will probably not be called. d. The yield to maturity is 4.12 percent, so if rates stay the same for the next 4 years,…Suppose you purchase a $1,000 TIPS on January 1, 2021. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual inflation is 4 percent, 1 percent, 1 percent, and 3 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment.