Question
Consider the following U.S. Government bond quotation from the Wall Street Journal . It is October 16, 2021. The bond has a $1,000 face value
Consider the following U.S. Government bond quotation from the Wall Street Journal. It is October 16, 2021. The bond has a $1,000 face value and pays semiannual coupons. (Please include a specific explanation for each step, I need full calculation and formulas used for the steps NO Excel, please)
Maturity | Coupon | Bid | Asked | Chg | Asked Yld |
2/02/44 | 4.375 | 97.777 | 97.888 | -0.555 | (1)????? |
11/11/44 | 9.645 | 109.999 | (2)????? | +0.333 | 8.888 |
a. (3 points) How much would you (an investor) pay if you are buying the bond with coupon rate of 4.375%? How much would you receive if you are selling?
b. (2 points) Fill in the missing values. You must provide calculator keyboard information such as SDT, CPN, RDT, and/or PRI/YLD.
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