QUESTION 5 A bond with a par value of 1000 and nominal annual coupon rate of 6% paid semiannually (i.e. 3% at the end of each six-month period) is redeemable for 1100. You are given the following information: The bond is purchased at P to yield 8% convertible semiannually. The absolute difference between the book value after the 15" coupon and the book-value after the 16th coupon is 3.54. Calculate P. Give your answer rounded to the nearest whole number (i.e. X). QUESTION 4 The bond shown below can be called (i.e. redeemed at face value) immediately after the coupon payment starting with the 35th coupon payment. What is the maximum yield rate (annual rate compounded semiannually) for this bond? Term: 20 Years Yield Rate: 4.5% compounded semiannually Annual Coupon Rate: 2.5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a percentage rounded to four places (i.e. X.XXXX%). Do not include the percent sign in BlackBoard. Note: Coupons are paid at the end of every six month period. QUESTION 3 Using the information given below, find the clean-price the bond 2 months after the 10th coupon is paid. The clean-price is also called the market-price and it removes (via a linear method) the included interest. This removal allows comparison between different bonds. Term: 20 Years Yield Rate: 4.5% compounded semiannually Annual Coupon Rate: 2.5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a whole number (i.e.x). Note: Coupons are paid at the end of every six month period. QUESTION 2 Using the information given below, find the dirty-price the bond 2 months after the 10th coupon is paid. The dirty-price is also called the price-plus-accrued and it includes any accrued interest. Term: 20 Years Yield Rate: 4.5% compounded semiannually Annual Coupon Rate: 2.5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a whole number (i.e.x). Note: Coupons are paid at the end of every six month period. QUESTION 1 Using the information given below, find the book-value (i.eli.e. the value of the remaining payments valued using the same yield rate as purchase) of the bond immediately after the 10th coupon is paid. Term: 20 Years Yield Rate: 4.5% compounded semiannually Annual Coupon Rate: 2.5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a whole number (1.e. X). Note: Coupons are paid at the end of every six month period. QUESTION 5 A bond with a par value of 1000 and nominal annual coupon rate of 6% paid semiannually (i.e. 3% at the end of each six-month period) is redeemable for 1100. You are given the following information: The bond is purchased at P to yield 8% convertible semiannually. The absolute difference between the book value after the 15" coupon and the book-value after the 16th coupon is 3.54. Calculate P. Give your answer rounded to the nearest whole number (i.e. X). QUESTION 4 The bond shown below can be called (i.e. redeemed at face value) immediately after the coupon payment starting with the 35th coupon payment. What is the maximum yield rate (annual rate compounded semiannually) for this bond? Term: 20 Years Yield Rate: 4.5% compounded semiannually Annual Coupon Rate: 2.5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a percentage rounded to four places (i.e. X.XXXX%). Do not include the percent sign in BlackBoard. Note: Coupons are paid at the end of every six month period. QUESTION 3 Using the information given below, find the clean-price the bond 2 months after the 10th coupon is paid. The clean-price is also called the market-price and it removes (via a linear method) the included interest. This removal allows comparison between different bonds. Term: 20 Years Yield Rate: 4.5% compounded semiannually Annual Coupon Rate: 2.5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a whole number (i.e.x). Note: Coupons are paid at the end of every six month period. QUESTION 2 Using the information given below, find the dirty-price the bond 2 months after the 10th coupon is paid. The dirty-price is also called the price-plus-accrued and it includes any accrued interest. Term: 20 Years Yield Rate: 4.5% compounded semiannually Annual Coupon Rate: 2.5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a whole number (i.e.x). Note: Coupons are paid at the end of every six month period. QUESTION 1 Using the information given below, find the book-value (i.eli.e. the value of the remaining payments valued using the same yield rate as purchase) of the bond immediately after the 10th coupon is paid. Term: 20 Years Yield Rate: 4.5% compounded semiannually Annual Coupon Rate: 2.5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a whole number (1.e. X). Note: Coupons are paid at the end of every six month period
