Question

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.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

THERE ARE TOTAL 182 DAYS IN THIS PERIOD = 50 + 132 = 182

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
1a) The spot exchange rate is $0.75 US/CAD. The U.S. interest rate is 2%, the interest...
1a) The spot exchange rate is $0.75 US/CAD. The U.S. interest rate is 2%, the interest rate in Canada is 3%. A futures contract on 1,000,000 CAD, with one year to delivery, settles at 0.77 US/CAD. Calculate the amount of U.S. dollars that you need for the arbitrage strategy. Borrow $978,874 U.S. Borrow $728,155 U.S. Invest $978,874 U.S. Invest $728,155 U.S. 1b) A futures contract on S&P 500 with the maturity 3 months has settled at 2,510 today. The underlying...
High Country Marketing Corp. issues a corporate bond that has a 10-year maturity with a par...
High Country Marketing Corp. issues a corporate bond that has a 10-year maturity with a par value of $1,000 and pays interest semiannually. The quoted coupon rate is 6%. (a) If the required rate of return on this bond is 8% per year. What should the issuing price be?   (b) The bond is callable in 3 years at 110% of par. What is the bond’s yield to call?   (c) Currently, the bond is having an ask price of $998.91, and...
Consider a bond paying a coupon rate of 8.25% per year semiannually when the market interest...
Consider a bond paying a coupon rate of 8.25% per year semiannually when the market interest rate is only 3.3% per half-year. The bond has two years until maturity. Par Value is 1,000 a. Find the bond's price today and six months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Current Price = 1,030.45 Price after 6 months = 1,023.20 b. What is the total rate of return...
What is the price of a 4-year bond with a coupon rate of 10% and face...
What is the price of a 4-year bond with a coupon rate of 10% and face value of $1,000? Assume the bond is trading at 10% yield, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to the nearest cent (2 decimal places). What is the yield of a 3-year bond with a coupon rate of 9% and face value of $100? Assume the bond is currently trading at a price of $100, and that coupons are...
Suppose that our one-year 10% coupon bond was originally issued as a 20-year-maturity bond 19 years...
Suppose that our one-year 10% coupon bond was originally issued as a 20-year-maturity bond 19 years ago. At that time, the yield curve as flat at 10% per year. Now the bond has one year remaining before it matures, and the interest rate on one-year bonds is 5% per year. Although the 10% coupon bond was issued at par ($1000), its market price will now be $1047.62. How does the market price come out to be $1047.62 ????
Consider a bond (with par value = $1,000) paying a coupon rate of 7% per year...
Consider a bond (with par value = $1,000) paying a coupon rate of 7% per year semiannually when the market interest rate is only 6% per half-year. The bond has 3 years until maturity.    a. Find the bond's price today and 6 months from now after the next coupon is paid. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)      Current price ____________ $      Price after six months __________ $       b. What...
Assume the bond’s quoted (“clean”) price is $1,044.56, the bond has the coupon rate of 8.1%...
Assume the bond’s quoted (“clean”) price is $1,044.56, the bond has the coupon rate of 8.1% and that the coupons are paid semiannually. Further assume that the bond has the face value of $1,000. What is the bond’s invoice (“dirty”) price if the last coupon payment took place four months ago?
1) An investor buys a 10-year bond with a 7.5% coupon rate paid annually. The bond...
1) An investor buys a 10-year bond with a 7.5% coupon rate paid annually. The bond with a YTM of 6%, is purchased at a price of $111.040 per $100 of par value. Assuming a 25bp change in the YTM, the bond’s approximate modified duration is closest to: a) a) 7.100 years b) 7.450 years c) 7.253 years 2) As a corporate bond analyst, you see a 10-year newly bond issued by Apple trading at a spread to Treasuries of...
6) Five years ago, UMPI Corporation issued a 10% coupon (paid annually), 25-year, AA bond at...
6) Five years ago, UMPI Corporation issued a 10% coupon (paid annually), 25-year, AA bond at its par value of $1,000. Currently, the yield to maturity on these bonds is 12%. Calculate the price of the bond today.
What is the price of a 10-year bond paying an annual coupon rate of 8.6%, but...
What is the price of a 10-year bond paying an annual coupon rate of 8.6%, but paying it semiannually, per face (par) value of $1,000 if the annual market rates for these bonds are 12.1%? Answer to the nearest cent, xxx.xx What is the price of a 12-year bond paying 8.2% annual coupons with a face (par) value of $1,000 if the market rates for these bonds are 11.6%? Answer to the nearest cent, xxx.xx
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT