Question
You sell a bond for $1100 and place it in an account that yields 10% per year. What is the future value of this amount
You sell a bond for $1100 and place it in an account that yields 10% per year. What is the future value of this amount in 2 months? In 2 years?
A $1000 face value bond with 10% coupon rate and semi-annual coupons is purchased for $1010. What is the annualized YTM on this bond if the first coupon is due in 3 months and the bond matures in 1 year and 9 months?
You purchase a 1.5 year maturity bond with a 20% coupon rate payable semi-annually that pays $100 in 6 months, 100 in 1 year and 1100 in 1.5 years. What is the are the cumulated bond proceeds after 1.5 years if the reinvestment rate is 8%?
A 91 day t-bill is quoted at a discount rate of 2%. Compute its price and BEY? Annualized yield?
What is the accrued interest on a $1000 face value coupon bond purchased 70 days from the last coupon date. Assume that there are a total of 184 days between the last and next coupon dates and the annual coupon rate is 8%. The accrued interest is calculated based on actual by actual basis. What is the amount you will pay to buy it?
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