Question

It is March 3, 2020. The quoted price of a U.S. government bond with a 5%...

It is March 3, 2020. The quoted price of a U.S. government bond with a 5% per annum coupon (paid semiannually) is 108-15. The bond matures on May 16, 2028.

(a) What is the cash price?

(b) How does your answer change if it is a corporate bond?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a bond traded on march 30, 2015, and matures on march 30, 2028 and may be...
a bond traded on march 30, 2015, and matures on march 30, 2028 and may be called anytime after march 30, 2018 at a call price of 110. the bond pays a 5.75 coupon semiannually and currently trades at 98. what are the YTM and YTC for this bond?
A 8.7% semiannual-pay corporate bond matures 15 August 2028 and makes coupon payments on 15 February...
A 8.7% semiannual-pay corporate bond matures 15 August 2028 and makes coupon payments on 15 February and 15 August. The bond uses the 30/360 day-count convention for accrued interest. The bond is priced for sale on June 5, 2020 (that is, 110 days since the Feb. 15 coupon). What is its flat price (or clean price) per $ 100 of par value on June 5, 2020 if its yield to maturity is 8%?
A corporate bond is quoted at a price of 106.13 and carries a 5.20 percent coupon....
A corporate bond is quoted at a price of 106.13 and carries a 5.20 percent coupon. The bond pays interest semiannually. What is the current yield on one of these bonds? (EDIT: not sure how to change this since the only options ive been given to answer are the dollar amounts i gave. I guess just dont answer the question, ill figure something out. other question answered the percentage should be 4.9 or something but that doesnt help if that...
It is March 10, 2017. The cheapest-to-deliver bond in a December 2017 Treasury bond futures contract...
It is March 10, 2017. The cheapest-to-deliver bond in a December 2017 Treasury bond futures contract is an 8% coupon bond, and delivery is expected to be made on December 31, 2017. Coupon payments on the bond are made on March 1 and September 1 each year. The rate of interest with continuous compounding is 5% per annum for all maturities. The conversion factor for the bond is 1.2191. The current quoted bond price is $137. Calculate the quoted futures...
) On July 5, 2020, you purchase a $100,000 T-note that matures on July 15, 2031...
) On July 5, 2020, you purchase a $100,000 T-note that matures on July 15, 2031 (settlement occurs One day after purchase, so you receive actual ownership of the bond on July 6, 2020). The last coupon payment occurred on February 15, 2020 (144 days before settlement), and the next coupon payment will be paid on August 15, 2019 (40 days from settlement). The coupon rate on the T-note is 4.750 percent and the current price quoted on the bond...
Quoted price of the bond is $105. Coupon is 10% per year, paid twice a year....
Quoted price of the bond is $105. Coupon is 10% per year, paid twice a year. Par value is $100. The most recent coupon was paid 50 days ago, and the next coupon will be paid 132 days from now. Find the cash price of the bond. Round to the nearest integer.
Suppose that you purchase a bond with a quoted price of $991.52 on January 15. The...
Suppose that you purchase a bond with a quoted price of $991.52 on January 15. The bond has a coupon rate of 6.840% and pays interest on May 15 and November 15 of each year. The exact number of days between November 15 and January 15 is 61, and the exact number of days between November 15 and May 15 is 181. What is the invoice price of the bond? (Round your answer to 2 decimal places.) Invoice price            $
A company just issued a 5 year bond for a price of $100 that pays coupons...
A company just issued a 5 year bond for a price of $100 that pays coupons every 6 months. The coupon rate is 3percent per annum, the yield is 3 percent per annum and the principal is $100. The bond buyer was also a company. Both the buying and selling companies are subject to a 30% corporate tax rate. Which of the following statements is NOT correct? All things remaining equal, per one bond, every 6 months: Select one: a....
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of...
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.80 percent, a par value of $2,000 per bond, matures in 5 years, has a total face value of $5.1 million, and is quoted at 105 percent of face value. The second issue has a coupon rate of 6.57 percent, a par value of $1,000 per bond, matures in 15 years, has a total face value of $9.4 million, and is quoted at 108...
A $10,000 face value 12% coupon corporate bond matures on March 15, 2030. You purchase the...
A $10,000 face value 12% coupon corporate bond matures on March 15, 2030. You purchase the bond on July 17, 2019 (M1) at a quoted price of 99.475. Please, compute the bond’s YTM, its invoice price as of the settlement date (M3), and its dirty price on the purchase date (M1). State the yield as a percentage with 6 digits after the decimal point and the prices in dollars and cents. Show all calculator inputs. You must use your calculator’s...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT