Question
1.A 6% $100,000 bond has exactly 7 years to maturity and pays semi-annually. What is the price of the bond if the yield is 6.25%pa?
1.A 6% $100,000 bond has exactly 7 years to maturity and pays semi-annually. What is the price of the bond if the yield is 6.25%pa?
2.If the interest rate is 5.55% pa what is the equivalent discount rate? Give your answer correct to 2 decimal places: g, not 0.0625 give 6.25
3.Calculate the price for a 8% 21st of October 2034 CGB when the yield is 8.342% on the 17th April 2021? Assume the par value is $100 and give your answer correct to 4 decimal place
4.On the 4th June 2021, the price for the 4.5%, 15th of January 2034 was $124.250. Calculate the implied yield to maturity for this bond. Assuming semi-annual coupons Give your answer correct to 4 decimal places and express the answer as a decimal. eg not 0.0625 but 6.25.
5.On the 18th July 2020, I purchased a 2.45%, 21st August 2030 CGB at a yield of 1.346%. then on the 16th of September 2021 on sold it when the yield was 1.228%. Assuming the reinvestment rate was 1.25%pa simple interest, what was the holding period yield for this investment? Express your answer as a percentage to 3 decimal places, eg not 0.0625 but 6.253
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