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Market data on publicly traded Canadian (government and corporate) bonds is available at bondtradedata. iiroc.ca. Please look up bond with Security ID code. (a) Based
Market data on publicly traded Canadian (government and corporate) bonds is available at bondtradedata. iiroc.ca. Please look up bond with Security ID code. (a) Based on the information you find, what are the dates and nominal amounts of the bond's remaining cash flows? (remember that for publicly traded bonds, coupon payment is semi-annual). (b) Assume that on January 30, 2021, the bond's yield (to maturity) will be the same as now. What will be the bonds price at that time? Give formula. (c) Imagine Bell Canada's risk (in eyes of investors) spikes up due to customers switching to Rogers and Telus. How would that affect the bond's yield rate? Coupon rate? Bond price? Explain briefly. (d) Based on present bond market data, is the bond "risky" or "safe" in eyes of investors. Explain briefly (e) Based on present bond market date, can you say anything about investors' inflation expectations? Explain briefly. Market data on publicly traded Canadian (government and corporate) bonds is available at bondtradedata. iiroc.ca. Please look up bond with Security ID code. (a) Based on the information you find, what are the dates and nominal amounts of the bond's remaining cash flows? (remember that for publicly traded bonds, coupon payment is semi-annual). (b) Assume that on January 30, 2021, the bond's yield (to maturity) will be the same as now. What will be the bonds price at that time? Give formula. (c) Imagine Bell Canada's risk (in eyes of investors) spikes up due to customers switching to Rogers and Telus. How would that affect the bond's yield rate? Coupon rate? Bond price? Explain briefly. (d) Based on present bond market data, is the bond "risky" or "safe" in eyes of investors. Explain briefly (e) Based on present bond market date, can you say anything about investors' inflation expectations? Explain briefly
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