Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what is the expected market value of the following bonds in the ML brokerage account if interest rates decrease by 1%? assume interest is paid
what is the expected market value of the following bonds in the ML brokerage account if interest rates decrease by 1%? assume interest is paid semiannually?
Money Market Money market Bonds ML Brokerage Account $10,000 U.S. Treasury note $15,000 U.S. Treasury bond $50,000 U.S. Treasury bond $20,000 Davidson debenture Account Name: Archie Peyton Account Number: AB100402 Balances Price/share $ 1.00 Maturity 5 25 30 20 Shares 6,667.00 Coupon 2.75% 2.50% 0.00% 5.50% Current Yield 1.5% Cost Basis $10,351.18 13,138.64 4,093.40 17,455.93 $45,039.15 Fair Market Value $6,667.00 Fair Market Value $10,000.00 10,579.83 3,982.02 16,288.44 $40,850.29 Money Market Money market Bonds ML Brokerage Account $10,000 U.S. Treasury note $15,000 U.S. Treasury bond $50,000 U.S. Treasury bond $20,000 Davidson debenture Account Name: Archie Peyton Account Number: AB100402 Balances Price/share $ 1.00 Maturity 5 25 30 20 Shares 6,667.00 Coupon 2.75% 2.50% 0.00% 5.50% Current Yield 1.5% Cost Basis $10,351.18 13,138.64 4,093.40 17,455.93 $45,039.15 Fair Market Value $6,667.00 Fair Market Value $10,000.00 10,579.83 3,982.02 16,288.44 $40,850.29
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started