Question
If the yield of a bond was 135 basis points (bp) above Treasuries, and the yield of Treasuries was 1.6500%, the actual yield of the
If the yield of a bond was 135 basis points (bp) above Treasuries, and the yield of Treasuries was 1.6500%, the actual yield of the bond was 1)....... %.
If the yield of a bond was 4.1800% and the yield of the benchmark bond was 2.0200%, the spread was 2)...... bp.
A bond issued by ABC Corporation with nominal yield of 2% and maturity of June 30, 2027 was sold on June 30, 2020. If the yield of equivalent bonds at the time was 1.5%, the price of ABC bond would have been 3).......dollars.
A bond issued by ABC Corporation with nominal yield of 2%and maturity of June 30, 2028 was traded on June 30, 2019. If the price of the bond was $99.75, the yield was 4)..... %.
ABC Corporation intends to issue a bond with nominal yield of 2.2% and maturity of June 30, 2030 on June 30, 2020. If equivalent bonds trade in the market at the yield of 2.2430%, ABC will issue the bond at the price of 5).... dollars.
PQR Corporation is planning to raise funds through a issue of bonds. If equivalent issuers are issuing 20-year bonds at the yield of 1.5740%, and PQR issues a 20-year bond with nominal yield of 1.5% totaling 10 billion dollars, PQR will raise 6)...... dollars (excluding commissions to investment banks).
An investor sold a bond issued by PQR Corporation with nominal yield of 2% and maturity of June 30, 2027 on June 30, 2020. If the yield on US Treasury Bonds was 1.5210% and the spread for PQR was 100 basis points, the trading price was 7)...... dollars.
An investor bought $10 million worth of a bond issued by PQR Corporation with nominal yield of 3% and maturity of June 30, 2030, on June 30, 2020 at face value (ie, price of $100.00). If the investor sold the same bond on June 30, 2021, the yield on US Treasury Bonds was 1.6210% and PRQ's spread was 100 basis points, the investor would
8)gain/lose 9)....... dollars.
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