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?You are interested in purchasing a bond maturing on November 1st, 2029. The bond pays semiannual coupons at a 6% annual coupon rate. It has a discount rate of 4% and a $1,000 par value. Today is November 1st, 2023. What is the price (in terms of dollars) of the bond?Today is March 21, 2023. Jack plans to buy a Treasury bond that matures in May 2052. The bond pays coupons semi-annually on May 15 and November 15 of each year. The Treasury bond has an annual coupon rate of 5 percent. If Jack buys the bond today, there are 56 days to the next coupon payment (out of the 184 days in the current semi-annual period). How much must Jack pay for the bond if he knows the clean price of this bond is $1,150?
- 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?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 $1,032.06Assume 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 upvote
- On January 2021, you buy a 10-year coupon bond with coupon payments of $10,000 per year and a final value of $100,000. The yield to maturity of this bond is 10 percent. On January 2022, you collect your first coupon and sell the bond in the bond market. On January 2022 the yield to maturity of this bond decreases to 8 percent. Calculate the following: a. holding period return rate b. current yield rate c. capital gain rate Please include formulas and calculationsA Treasury bond that settles on May 18, 2019, matures on December 31, 2031. The coupon rate is 9.65 percent, and the quoted price is 106 12/32. What is the bond’s yield to maturity? Payments are semi-annually.On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 5.8% 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.) $1.152.74 O $1,15411 $1.155.30 $1.156.25 O$1,158.85