Question

A 3-yr T-note with a face value of $1000 and a coupon rate of 5.98% p.a....

A 3-yr T-note with a face value of $1000 and a coupon rate of 5.98% p.a. is trading at par.
The amount of each coupon from this note is 29.9.
If you hold the above T-note for 2 months and then sell it at a yield of 5% p.a., the dirty price is:
Business   Finance   
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
Q1.  Suppose a​ ten-year,  bond with a face value of $1000 an coupon rate 8.4% p.a. and semiannual...
Q1.  Suppose a​ ten-year,  bond with a face value of $1000 an coupon rate 8.4% p.a. and semiannual coupons is trading for 1034.59 a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)? b. If the bond's yield to maturity changes to 9.1% APR, what will be the bond's price?
A five-year bond has a face value of $1,000. Its coupon rate is 5% p.a. and...
A five-year bond has a face value of $1,000. Its coupon rate is 5% p.a. and coupons are paid semi-annually. a. If the market yield at issuance is 5%, without calculation identify the price of the bond would be? b. If we hold the bond for 1.5 years and then sell it at a yield of 4% p.a. What would the selling price be? c. What would the holding period yield p.a. on this investment be?
3. A 2-year T-note was issued 9 months ago with a face value of $1000. It...
3. A 2-year T-note was issued 9 months ago with a face value of $1000. It pays a 5% per annum coupon, paid semiannually. Suppose that the 3-month zero rate is 6%; the 9-month zero rate is 6.1%; the 15-month zero rate is 6.2%; and the 21-month zero rate is 6.3%, where all of these rates are per annum with continuous compounding. What is the price for the bond today?
Apple Inc has a bond with $1000 face value and a coupon rate of 8%, and...
Apple Inc has a bond with $1000 face value and a coupon rate of 8%, and Apple Inc has another bond with $1000 face value and a coupon rate of 12%. Both bonds pay coupon payment on January 1st in each year. Both bonds have 10-year maturities from today (January 2, 2010) and both sell at a yield to maturity of 10%. Suppose their yields to maturity next year are still 10%. Now, suppose you purchase two bonds today (January...
a) An HSBC bond has a face value of 1000, a coupon rate of 8%, 3...
a) An HSBC bond has a face value of 1000, a coupon rate of 8%, 3 years until maturity and a yield to maturity of 7%. Calculate bond duration. D= ? *[cash flowt/(1+YTM)t]}/price of bond where t is time to maturity and YTM stands for yield to maturity. N.B: You need to show how you have calculated duration. A single value will not suffice. b) HSBC has issued a 9-year bond with YTM of 10% and duration of 7.194 years....
. Suppose in 2020 you buy 2% coupon rate, $1000 face value bond for $1000 that...
. Suppose in 2020 you buy 2% coupon rate, $1000 face value bond for $1000 that has 3 years left till maturity. Suppose in 2021, when interest rates increase to 5%, you decide to sell it. a) Calculate the selling price of your bond in 2021. How did its value change because of the interest rate increase? What was your one-year rate of return?
Suppose in 2020 you buy 2% coupon rate, $1000 face value bond for $1000 that has...
Suppose in 2020 you buy 2% coupon rate, $1000 face value bond for $1000 that has 3 years left till maturity. Suppose in 2021, when interest rates increase to 5%, you decide to sell it. a) Calculate the selling price of your bond in 2021. How did its value change because of the interest rate increase? b) What was your one-year rate of return?
A Chinese steel producer has issued a 3-year, 8 percent coupon bond with face value RMB...
A Chinese steel producer has issued a 3-year, 8 percent coupon bond with face value RMB 1,000,000. i) How much is this bond worth to you if the interest rate is 8%? ii) How much is this bond worth to you if the interest rate is 10%? iii) Suppose you buy this bond at par and hold it for one year. When you sell the bond, after the coupon for the first year having been paid, the interest rate is...
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity...
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity if the required return on these bonds is 3%? Consider a bond with par value of $1000, 25 years left to maturity, and a coupon rate of 6.4% paid annually. If the yield to maturity on these bonds is 7.5%, what is the current bond price? One year ago, your firm issued 14-year bonds with a coupon rate of 6.9%. The bonds make semiannual...
What is the price of a 5​-year, 8.1 % coupon​ rate, $1000 face value bond that...
What is the price of a 5​-year, 8.1 % coupon​ rate, $1000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 11.5 %​?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT