Question

A semi-annual coupon Corporate bond was purchased for settlement on January 5, 2013. The last coupon was paid on September 15, 2012. Using the 30/360 day count convention, answer the following questions: a. on what date will the next coupon be paid? b. how many days passed between the last coupon paid and the settlement date? c. how many days are there in the current coupon period?

Answer #1

b) Last coupon was paid on 15 September, 2012 and the settlement
date is 05 January, 2013, the number of days involve between these
two dates using 30/360 day count convention is :

September- 16 days (15 to 30 september)

October- 30 days

November- 30 days

December- 30 days

January- 5 days

Total - 111 days

c) Next coupon date is 15 March 2013. Hence the number of days in
current coupon period using 30/360 day count convention is (25 days
of January + 28 days of February + 15 days of March)= 68 days.

A 12-year bond was issued five years ago. The bond is
denominated in US dollars, offers a coupon rate of 10% with
interest paid semi-annually, and iscurrently priced at 102% of par.
The bond’s:
A.
tenor is five years
B.
nominal rate is 5%
C.
tenor is seven years
D.
price must be $1,020.00
Short-term, unsecured promissory notes issued in the public
money market or via a private placement that represents a debt
obligation of the issuer:
A.
Commercial paper...

A Delta Corporation bond issue is described below. It is sold
for a settlement on July 10, 2019.
Annual Coupon 9
Coupon Payment Frequency Semiannual
Interest payment dates 20 March, 20 September
Maturity Date 20 September 2020
Day Count Convention 30/360
Annual Yield to Maturity 5 percent
What is the full price of the bond that will settle on July 10,
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Suppose that a bond is purchased between coupon periods. The
days between the settlement date and the next coupon period are 80.
There are 182 days in the coupon period. Suppose that the bond
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BOND TYPE: Corporate,
YIELD-TO-MATURITY: 5 percent
ANNUAL COUPON RATE: 5 percent
COUPON FREQUENCY: Semi - Annual
MATURITY DATE: Today’s Date with the year set to 4 years from
now. (i.e. If today is July 21, 2019, then it should be July 21,
2023)
PAR VALUE: $1000.00
QUANTITY: 1
SETTLEMENT DATE: Today's date (i.e. July 21, 2019).
Compute the price of this bond using the formula, the formula
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a. A $1,000 bond with 8% semi-annual coupons is being sold 3
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Determine the flat price, accrued coupon, and market price.
b. Rework part a. assuming the bond pays coupons on March 1 and
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An investor buys a corporate bond with a coupon rate of 7.6%.
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13-
Annual Coupon 5%
Coupon Payment Frequency Semiannual
Interest Payment Dates 14 Mar and 14 Sep
Maturity Date 14 Sep 2016
Day- count Convention 30/360
Annual Yield -to-Maturity 4%
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Annual Coupon
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Coupon Payment Frequency
Semiannual
Interest Payment Dates
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Maturity Date
10 October 2016
Day-count Convention
30/360
Annual Yield-to-Maturity
4%
For Bond G listed in Table 14.0 what is the accrued interest
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1.06
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none of the above.
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Days separating coupon payments 182
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