evaluate the following pure yield pick up swap: you currently hold a 15-year, AA- rated, 9% coupon Bond priced to yield 12%. as a swamp candidate you are considering a 15-year, AA-rated 11.5% coupon Bond priced to you 13% ( assume reinvestment at 12%, $1,000 power value semi-annual coupons) do not round intermediate calculations round your monetary answers to the nearest cent and percentage answers and value of swap to two decimal places. you may use appendix c to answer the questions.

Evaluate the following pure-yield pickup swap: You currently hold a 15-year, AA-rated, 9.0% coup bond priced to yield 12.0%. As a swap candidate, you are considering a 15-year, AA-rated, 11.5% coupon bond priced to yield 13.0%. (Assume reinvestment at 12.0%, $1,000 par value, semiannua coupons.) Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers and value of swap to two decimal places. You may use Appendix C to answer the questions. Current Bond Candidate Bond Dollar investment TA $ $ Annual coupon $ i on one coupon $ $ $ $ $ Principal value at year end Total accrued $ $ Realized compound yield % % Value of swap basis points in one year Evaluate the following pure-yield pickup swap: You currently hold a 15-year, AA-rated, 9.0% coup bond priced to yield 12.0%. As a swap candidate, you are considering a 15-year, AA-rated, 11.5% coupon bond priced to yield 13.0%. (Assume reinvestment at 12.0%, $1,000 par value, semiannua coupons.) Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers and value of swap to two decimal places. You may use Appendix C to answer the questions. Current Bond Candidate Bond Dollar investment TA $ $ Annual coupon $ i on one coupon $ $ $ $ $ Principal value at year end Total accrued $ $ Realized compound yield % % Value of swap basis points in one year