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1. An investor pays $9, 775 for a 91 day T-bill having a maturity value of $10,000. a) Calculate the interest at maturity: b) Calculate

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1. An investor pays $9, 775 for a 91 day T-bill having a maturity value of $10,000. a) Calculate the interest at maturity: b) Calculate the T-Bill yield = 2. An investor pays, $19,215 for a 182 day T-Bill having a maturity value of $20,000. a) Calculated the interest at maturity: b) Calculate the T-Bill yield: 3. An Investor paid $2,368.75 to purchase a $2,500 face value corporate bond which has a 5.25% coupon rate. Calculate the current yield for this bond. 4. An investor paid $22,750 to purchase a $25,000 face value bond which has a 9% coupon rate. Calculate the current yield for this bond. 5. A semi-annual bond with a 6% coupon is currently trading at 95. It has 10 years to maturity. What is the approximate yield to maturity on this bond? 6. A semi-annual bond with a 7% coupon is currently trading at 98. It has 5 years to maturity. What is the approximate yield to maturity on this bond? 7. What is the present value of the second coupon of a 7% semi-annual pay bond trading at 96, assuming a discount rate of 8% and a face value of $1,000? 8. What is the present value of the first coupon of a 7% semi-annual pay bond trading at 96, assuming a discount rate of 8% and a face value of $1,000? 9. What is the present value of all the coupons on the following bond, a 9% 5 y bond with a par value of $1,000 which pays interest semi annually and is maturing in 5 years? 10. Mala purchased a 5% Government of Canada bond, due to mature on March 24, 2025, with a principal amount of $100,000. Mala purchased the bond on Wednesday, May 21 of this year, and the last coupon was paid on March 15 of this year. Calculate the following: a) Calculate the number of days on which accrued interest is owing for this bond? b) Give the formula for calculating the accrued interest? Par Amount x Coupon rate/ 100 x Time period / 365 = Accrued interest = c) Calculate the accrued interest on this bond? 1

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