Question

A Treasury note with a 4% coupon, semiannual payments, and par value of $1,000 yields 4.5%...

A Treasury note with a 4% coupon, semiannual payments, and par value of $1,000 yields 4.5% and has four payments left to maturity. There are 129 days until the next coupon payment and 182 days between coupons. What is the clean price of the note (i.e., price net of accrued interest)?

Homework Answers

Answer #1

ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE. THUMBS UP PLEASE.

clean price= $992.11

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You buy a 4% coupon T-bond with par value of $1,000. You become the owner 125...
You buy a 4% coupon T-bond with par value of $1,000. You become the owner 125 days after the last coupon payment, and there are 57 days remaining until the next coupon payment. The bond’s clean price is $900. Calculate the dirty price (also referred to as the full price or invoice price).
Problem 8-23 Accrued Interest You purchase a bond with a par value of $1,000, a coupon...
Problem 8-23 Accrued Interest You purchase a bond with a par value of $1,000, a coupon rate of 7.2 percent, and a clean price of $910. If the next semiannual coupon payment is due in two months, what is the invoice price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Problem 8-23 Accrued Interest You purchase a bond with a par value of $1,000, a coupon...
Problem 8-23 Accrued Interest You purchase a bond with a par value of $1,000, a coupon rate of 7.5 percent, and a clean price of $915. If the next semiannual coupon payment is due in two months, what is the invoice price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is NOT 883.75
1. Assume that you held a Treasury note that makes coupon payments on May 15 and...
1. Assume that you held a Treasury note that makes coupon payments on May 15 and November 15. The number of days between each coupon payment is 184. Suppose you sold the bond on June 27, 2016. If the number of days between May 15 and June 27 is 43, the bond carried a coupon rate of 3.875% and matures as of May 15, 2026 ($1,000 par value), a) What would have been the settlement (dirty) price on June 27,...
Suppose that there are 4 semi-annual coupons remaining for a 7% coupon bond. There are 104...
Suppose that there are 4 semi-annual coupons remaining for a 7% coupon bond. There are 104 days until the next coupon payment date and there are 182 days in a coupon period. Assuming that the annualized discount rate on a bond-equivalent yield basis is 10%, what is the clean price of this bond? Par value is $100.
Suppose that there are 4 semi-annual coupons remaining for a 7% coupon bond. There are 104...
Suppose that there are 4 semi-annual coupons remaining for a 7% coupon bond. There are 104 days until the next coupon payment date and there are 182 days in a coupon period. Assuming that the annualized discount rate on a bond-equivalent yield basis is 10%, what is the clean price of this bond? Par value is $100.
You can buy or sell a 5.0% coupon $10,000 par U.S. Treasury Note that matures in...
You can buy or sell a 5.0% coupon $10,000 par U.S. Treasury Note that matures in 12.5 years. The first coupon payment pays 6 today, and the Note pays coupons semi-annually until maturity. It also pays par on maturity. The Yield to Maturity of the Note right now is 3.000%. (a) What are the cash flows associated with this Note? Clearly identify which of these cash flows are annuity dues, ordinary annuities, or single cash flows. (b) What is the...
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate...
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.) Bond equivalent yield to maturity % Effective annual yield to maturity %
1. Assume Par value of $1,000 and semiannual coupon payments for all: A bond has a...
1. Assume Par value of $1,000 and semiannual coupon payments for all: A bond has a coupon rate of 8.6% and 11 years until maturity. If the yield to maturity is 7.6%... a) is the bond selling at a discount, premium or at face value? b) what is the price of the bond? c) if market rates rose (such that bonds of equal credit risk were now paying 8% (new YTM = 8%), would that make the price of the...
A corporation has a bond outstanding that makes semiannual coupon interest payments. The coupon rate for...
A corporation has a bond outstanding that makes semiannual coupon interest payments. The coupon rate for the bond is 3.2 percent, the YTM (yield to maturity) is 4.5 percent, the par value is $1,000 and the bond has 12 years to maturity. If interest rates remain unchanged, what will the price of the bond be in 3 years?