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You own the following positions. Using the information provided: (for Zero Coupon Bonds m = 1, Coupon Bonds m = 2) Issuer Maturity Coupon Price
You own the following positions. Using the information provided: (for Zero Coupon Bonds m = 1, Coupon Bonds m = 2)
Issuer | Maturity | Coupon | Price (% Par) |
US Treasury Bond | 2028 | 0% | 75.75 |
XYZ Bond | 2028 | 5.00% | |
JKL Corp | 2028 | 7.50% | 89.1 |
Today you settled on the purchase of $2.0 Million Par value XYZ bonds, the yield to maturity at the time of sale is 3.75%; how much money did you need at settlement? There are 179 days between coupon payments and the next payment is due in 83 days?
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