Question
Draw the cash flow for each bond. Determine the par value based on bond type, the yield to maturity, term, and coupon payments, paid semiannually.
Draw the cash flow for each bond. Determine the par value based on bond type, the yield to maturity, term, and coupon payments, paid semiannually.
Part A:
| Zero Coupons Treasury Bonds | ||
| Maturity | Coupon | Ask |
| Aug. 2047 | 0.0 | 99.10 |
| Mar. 2038 | 0.0 | 98.29 |
Part B:
| Coupon Treasury Bonds | ||
| Maturity | Coupon | Ask |
| Aug. 2060 | 3.000 | 104.28 |
| Feb. 2035 | 7.625 | 147.11 |
| Aug. 2039 | 6.125 | 132.29 |
Part C:
| Company Bonds | |||
| Bond Issuer | Coupon | Maturity | Last Price |
| Petrobras | 5.625% | May, 2043 | 74.60 |
| Royal Bank of Scotland | 5.000% | February, 2058 | 103.70 |
| Bank America | 3.000% | September, 2036 | 100.00 |
Part D:
| Municipal Bonds | |||
| Coupon | Maturity | Price | |
| Florida Bridge Construction | 3.00% | Nov. 2036 | 106.78 |
| Palomar Health | 4.00% | Oct. 2037 | 111.98 |
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
978-1292200743
