Question
A US treasury bond was issued today with a maturity of 30 years, face amount of $1000, redeemable at par, coupon rate of 2% convertible
A US treasury bond was issued today with a maturity of 30 years, face amount of $1000, redeemable at par, coupon rate of 2% convertible semiannually. The 30-year treasury yield today is at 1.2% convertible semiannually. Using the information above, answer the next four questions:
1. Without calculation, is the bond priced with a premium or a discount and why? Then, calculate the value of premium / discount. 2. Calculate the book value of the bond right after the 9th coupon payment. 3. Calculate the amount of amortization of premium / accumulation of discount in the 15th coupon payment.
Please calculate it with specific math formula steps instead of using fincancial calculator.Thank you!!!!!!!!!i will thumb up if it's correct!!!
4. Calculate the amount of interest in the 24th coupon payment
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