(YTM, semiannual payments) On 15 August 1990, the U.S. Treasury issued a bond maturing on 15 February 2020. The bond has a coupon rate of 8.75%, payable semi - annually on 15 February and 15 August. If on 22 June 2015 a $100 face value bond is selling for $138.89, what is the bond's yield to maturity

(YTM, semiannual payments) On 15 August 1990, the U.S. Treasury issued a bond maturing on 15 February 2020. The bond has a coupon rate of 8.75%, payable semi - annually on 15 February and 15 August. If on 22 June 2015 a $100 face value bond is selling for $138.89, what is the bond's yield to maturity

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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On 1 July 2023 Tamasek Ltd issues convertible notes with a face value of $10 million. The convertible notes have a 20-year term and mature on 30 June 2043. Interest is payable semi-annually in arrears, i.e. on 31 December and 30 June each year, and the coupon rate of interest is 7.5% p.a., At around the same point in time, companies with a similar credit rating issue debt securities without a conversion option with a coupon rate of 10% p.a., payable semi-annually. Required: Determine the debt and equity components of the convertible notes issued using the residual valuation method. Prepare the entries of Tamasek Ltd to account for the convertible notes over the period 1 July 2023 to 30 June 2025.
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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 ?? 5.374 6.178 Maturity Month/Year Bid May 29 103.5501 May 34 May 44 104.4991 ?? Asked 103.6383 104.6448 ?? Change +.3054 +.4329 +.5444 Ask Yield 2.389 ?? 4.091 In the above table, find the Treasury bond that matures in May 2029. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate 2.48 %
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