Calculate the BEY for each of the following two 270-day securities.

Instrument T: Quoted on 365 days at a rate of 3.2%

Instrument U: using an add on rate of 360 days at 5.6%

Calculate the bonds equivalent yield of each and compare the two results.

BEY T: 365/270 *3.2%

You want to determine the value of your company bond that you have held. The market has not traded your security in a long time but still makes payments semiannually 6.2% coupon and 7 years.

You find two similar bonds with characteristics as follows.

Bond X: 4-year 6% coupon priced at 950

Bond Y: 6-year 5% coupon priced at 980

a. What is the approximate price of your bond?

a. How does your bond compare to the other two bonds? 

You have a semi-annual bond that has 8 years left until maturity it is trading 99% of 1000 par value. You are earning 5.3% coupon. You are also expecting the bond to get called according to the following information. In year 5 at 101% call price and year 6 at 100.75% call price and year 7 at 100.5% call price.

a. What is the bonds annual yield to first call?

b. What is the bonds annual yield to second call?

c.Compare the two yields and which call would you expect to happen and why?

Let's say you are interested in a semi-annual corporate bond that is priced at 985.50. The annual yield to maturity is 4.75% and coupon is 6.50%. 

What do you expect the periodicity rate on a monthly basis would be?