Question
A dealer purchases a US Treasury bill with 60 days to maturity at a quoted discount rate of 6% . The face value is $120,000.
A dealer purchases a US Treasury bill with 60 days to maturity at a quoted discount rate of 6% . The face value is $120,000. Pls calculate the settlement amount.
Postulate the following zero-coupon bonds are trading at the prices shown below per $100 face value. Determine the corresponding yield to maturity for each bond. Maturity 1 year 2 years 3 years 4 years Price $88.18 $84.21 $79.42 $75.18
Consider three 30-year bonds with annual coupon payments. One bond has a 12% coupon rate, one has a 7% coupon rate, and one has a 5% coupon rate. If the yield to maturity of each bond is 6%, what is the price of each bond per $1000 face value? Which bond trades at a premium, which trades at a discount, and which trades at par?
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