Question

A Treasury bond is quoted with a price of 96-14. It has a coupon of 2.25%...

A Treasury bond is quoted with a price of 96-14. It has a coupon of 2.25% and a final maturity of 4/15/45 (and coupon payment dates of 4/15 and 10/15). The bond trades at that price on 12/7/16 on a regular way basis. The face amount of the transaction is $10 million.

What is the settlement date?

AND

What is the yield to maturity?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In regular way, settlement date is one day after trade date (T+1).

In above case, Trade date is 12/7/2016 thus settlement date would be 12/8/2016

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.

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
A Treasury bond is quoted with a price of 96-14. It has a coupon of 2.25%...
A Treasury bond is quoted with a price of 96-14. It has a coupon of 2.25% and a final maturity of 4/15/45 (and coupon payment dates of 4/15 and 10/15). The bond trades at that price on 12/7/16 on a regular way basis. The face amount of the transaction is $10 million. What is the dollar price for $10 million (excluding accrued interest) based on a price of 96-14? AND What is the accrued interest?
1.Consider a  semi-annual Treasury Bond with a settlement date of 9/22/2020 and a maturity date of 6/15/2025...
1.Consider a  semi-annual Treasury Bond with a settlement date of 9/22/2020 and a maturity date of 6/15/2025 and a coupon rate of 3.5%. The investor's estimated yield on the bond is 2.25%, what is the estimated quoted price? (Answer as a percent of the bonds face value)
13- Annual Coupon 5% Coupon Payment Frequency Semiannual Interest Payment Dates    14 Mar and 14...
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% For Bond Z listed above what is the accrued interest per 100 of par value on the settlement date of 23 Aug 2014 is A. $4.42 B. $1.50 C. $2.21 14- The bond equivalent yield of a 180 day banker's acceptance quoted at a discount rate of 2.25% for a...
A bond was purchased on April 15, 2008 and the quoted bond price was $930. The...
A bond was purchased on April 15, 2008 and the quoted bond price was $930. The previous coupon date was January 1, 2008. The next coupon date is January 1, 2009. The bond will mature on January 1, 2015. The bond’s annual coupon rate is 7% and the face value of the bond is $1,000. Coupons will be paid annually. Compute the bond’s yield to maturity on an accrued interest payment basis.
A Treasury bond with 8 years to maturity is currently quoted at 108:16. The bond has...
A Treasury bond with 8 years to maturity is currently quoted at 108:16. The bond has a coupon rate of 11.5 percent. What is the yield value of a 32nd for this bond? (Do not round intermediate calculations. Round your answer to 3 decimal places.)               Yield value (in basis points)
1. A Treasury note has 9 years till maturity is quoted at 96:17 with a 4.25%...
1. A Treasury note has 9 years till maturity is quoted at 96:17 with a 4.25% coupon. The bond pays interest semiannually. What is the yield to maturity on the bond? 2. Radio Shack needs to raise $4.75 million for an expansion project. The firm wants to raise this money by selling zero coupon bonds with a par value of $1,000 that mature in 15 years. The market yield on similar bonds is 6.85 percent. How many bonds must The...
Table 14.0 (for questions 14 and 15). Information regarding Bond G, sold for settlement on June...
Table 14.0 (for questions 14 and 15). Information regarding Bond G, sold for settlement on June 16, 2014. Annual Coupon 5% Coupon Payment Frequency Semiannual Interest Payment Dates 10 April and 10 October 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 per 100 of par value on the settlement date of June 26, 2014 is: 1.06 0.75 0.92 none of the above. What is the...
A Treasury bond with the longest maturity (30 years) has an ask price quoted at 105.4375....
A Treasury bond with the longest maturity (30 years) has an ask price quoted at 105.4375. The coupon rate is 3.40 percent, paid semiannually. What is the yield to maturity of this bond?
A Treasury bond with 12 years to maturity is currently quoted at 112:12. The bond has...
A Treasury bond with 12 years to maturity is currently quoted at 112:12. The bond has a coupon rate of 10.7 percent. What is the yield value (IN BASIS POINTS) of a 32nd for this bond?
The Treasury announces new issue of Treasury Bonds. Settlement date: 26.08.2020 Maturity date: 25.08.2023 Periodic coupon...
The Treasury announces new issue of Treasury Bonds. Settlement date: 26.08.2020 Maturity date: 25.08.2023 Periodic coupon rate (6 months): 1,87% Payment dates: 26.02.2021 27.08.2021 25.02.2022 26.08.2022 24.02.2023 25.08.2023 Market rates: 1 Month: 0.7% 3 Months: 1% On the new issuance, Market is expecting 25bp premium to secondary market. What would be the expected auction yield/price of new treasury bond?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT