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please solve it only 5 and 6 requirement because fires 4 i have done please do it fast i have not much time i have
please solve it only 5 and 6 requirement because fires 4 i have done please do it fast i have not much time i have only one hour
Question 2 The following Table shows some details of the corporate bond issued by ABC Plc. Issue Date 19 Jun 2018 Maturity Date 19 Jun 2026 Coupon Value +6.000% Coupon Type Fixed Coupon Frequency 12 months Next Coupon Payment Date 19 Jun 2022. The price at issue on 19 Jun, 2018 was 116.00 (i) At issue was the yield to maturity of this bond above, below or equal to 6%.[1] The incomplete equation to find the yield to maturity at issue, Im is given below. Complete the equation by inserting the PV of the last Cash Flow (at (ii) The incomplete equation to find the yield to maturity at issue, im is given below. Complete the equation by inserting the PV of the last Cash Flow (at maturity). [2] 6 6 116.00 = + + ... + (1 + rm) (1 + rm)2 Modify the yield-equation above to obtain the Duration of the bond, D [2] 6 D = (1 + rm). (1 + rm)2 6 + + ... + The clean price on the 1 Sep, 2020 (73 days from the last Coupon date) was 115.55. (iv) Calculate the dirty price, Pa on 1 Sep, 2020. [2] (v) Which one below is closest to the Duration of the bond on the 1 Sep, 2020? [1] A. 4.27y B. 5.27y C. 6.27y D. 7.27y The following equation shows the approximate change in the dirty Price, AP, caused by a change in the yield, Arm for the given Duration, D. -D(Arm)Pa = I sep, date) was 115.55. E ) 3:13 PM (iv) Calculate the dirty price, Pa on 1 Sep, 2020. [2] (v) Which one below is closest to the Duration of the bond on the 1 Sep, 2020? [1] A. 4.27y B. 5.27y C. 6.27y D. 7.27y The following equation shows the approximate change in the dirty Price, APd caused by a change in the yield, Arm for the given Duration, D. -D(Arm)Pd = (vi) Use your Duration answer from (v) to estimate the dirty Price of the bond if the yield fell by 1% on 1 Sep, 2020. [2] PLEASE TURN OVER
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