Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . A 3 0 - year 6 . 5 0 0 % semi - annual coupon bond has a tenor of 1 7 years

1. A 30-year 6.500% semi-annual coupon bond has a tenor of 17 years and a yield to maturity of 7.750%. In percent of PAR, what is the price of the bond today?
2. A 30-year 5.500% semi-annual coupon bond has a yield to maturity of 6.900%. If the current price is 90.882% of PAR, what must be the tenor, in years?
3. A 30-year 5.500% semi-annual coupon bond has a current price of 101.212% of PAR. If the tenor of the bond is 18 years, what must the yield to maturity be?
4. If the last coupon for a semi-annual coupon bond was paid on April 15,2015, on what date will the next coupon be paid?
5. If the maturity date of a semi-annual coupon bond is February 28,2039, on what date is the final coupon paid?
6. If the maturity date of a semi-annual coupon bond is May 15,2050, on what date is the next-to-final coupon paid (the one just previous to the final coupon)?
7. A semi-annual coupon U.S. Treasury bond was purchased for settlement on November 20,2017. The last coupon was paid on July 10,2017. Using the ACT/ACT Day count convention, answer the following questions:
a. On what date will the next coupon be paid?
b. How many days passed between the last coupon paid and the settlement date? (Hint: use the DATE function in your BA II Plus calculator.)
c. How many days are there in the current coupon period?
8. A semi-annual coupon U.S. Treasury bond was purchased for settlement on January 08,2012. The last coupon was paid on October 15,2011. Using the ACT/ACT Day count convention, answer the following questions:
a. on what date will the next coupon be paid?
b. how many days passed between the last coupon paid and the settlement date?
c. how many days are there in the current coupon period?
9. A semi-annual coupon Corporate bond was purchased for settlement on November 17,2017. The last coupon was paid on August 15,2017. Using the 30/360-day count convention, answer the following questions:
a. on what date will the next coupon be paid?
b. how many days passed between the last coupon paid and the settlement date?
c. how many days are there in the current coupon period?
10. A semi-annual coupon Corporate bond was purchased for settlement on February 22,2013. The last coupon was paid on October 25,2012. Using the 30/360-day count convention, answer the following questions:
a. on what date will the next coupon be paid?
b. how many days passed between the last coupon paid and the settlement date?
c. how many days are there in the current coupon period?

Step by Step Solution

3.47 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

1 To calculate the price of the bond today we need to determine the present value of the bonds cash flows The bond has a tenor of 17 years and the yield to maturity is 775 To calculate the price we ca... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Differential Equations And Linear Algebra

Authors: C. Edwards, David Penney, David Calvis

4th Edition

013449718X, 978-0134497181

More Books

Students also viewed these Finance questions