Question

True or False Give a 5 sentence explanation as to why it is true or false....

True or False

Give a 5 sentence explanation as to why it is true or false.

The price an investor will pay to purchases a Fannie Mae Issues that will mature on March 2013 is $1,043.4375. The bid quote for this Fannie Mae Issue is 104:09 and asked quote of 104:11. The numbers behind semi-colon is quoted as 32nd.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

TRUE

Bond quotation is the last price at with the bond is traded, generally it is expressed as percentage of par value which is usually $1000. bonds are expressed in 32nds.In the given case the bid quote 104:09 can be expressed as 104+9/32 % it means 104.28% (as 9/32 = .28) it means the bid price of a bond is $1042.8(1000*104.28/100). the similar calculation for ask quote also. 104:11 can be expressed as 104+11/32% it means 104.34% (as 11/32 =.34) It means the ask price is $1043.4

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
Discuss (=in one sentence) whether the following statements are true or false. E) If an investor...
Discuss (=in one sentence) whether the following statements are true or false. E) If an investor purchases 20% of the initial issue of the company, the investor then owns 20% of the company, given the one vote-one share norm. F) After an initial offering, the company can sell more shares to the public at a later date. If the investor who originally purchased 20% does not purchase 20% of the subsequent issue, his or her ownership is diluted below 20%....
6) Discuss (=in one sentence) whether the following statements are true or false. A) The payment...
6) Discuss (=in one sentence) whether the following statements are true or false. A) The payment of cash dividends to shareholders is a deductible expense for the company. B) Unlike coupon payments on bonds, which are treated as an interest expense of the firm, common stock dividends are considered a return of capital to shareholders and not an expense of the firm. C) For the shareholder, receipt of dividends is a taxable event. D) A typical practice of many companies...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies,...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT