A. You purchase a bond with an invoice price of $1,043. The bond has a coupon rate of 6.8%, semi-annually paid, and there are 5 months to the next coupon date. What is the clean price of the bond?

B. You purchase a bond with a coupon rate of 5.9%, semi-annually paid, and a clean price of $957. If there are 2 months to the next coupon date, what is the invoice price of the bond?

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Sixta KovacekLv2

13 Mar 2018

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Please answer questions 7 to 11 with work, thank you!

7) Cohen has issued a bond with the following characteristics: Par: $1,000; Time to maturity: 15 years; Coupon rate: 7%; Semiannual payment. What is the price of the bond if the YTM is 9%?

8) The Pane bond has 11.5 years to maturity, a YTM of 7.6%, and a current price of $1,060. The bond makes semiannual payments. What is the coupon rate on this bond?

9) What is the inflation rate if nominal return is 14% and real return is 10%?

10) Jay, Inc. and Nic Corp. both have 7% coupon bonds outstanding with semiannual payments and both are priced at par value. The Jay, Inc. bond has 2 years to maturity, while the Nic Corp. bond has 15 years to maturity. If interest rate suddenly rises from 7% to 9%, what is the percentage change in the price of these bonds? If interest rate suddenly decreases by 2%, what is the percentage change in the price of these bonds?

11. You purchase a bond with an invoice price of $950. The bond has a coupon rate of 6.8%, and there are 2 months to the next semiannual coupon date. What is the clean price of the bond?

orchidfrog938

4. A Treasury bond has a maturity of Oct 31, 2025. The coupon is 8% paid semi-annually. The yield (YTM) is 6.5%. You purchased the bond with a settlement date of April 20, 2017. The face value is $1,000,000.

a. Calculate the accrued interest.

b. To calculate the dirty price, you need the clean or quoted price. Given the information about the bond, how do you propose to calculate the clean price? [Hint: Consider how you would discount the cash flows.]

jadewasp972

Problem 24-12

Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $99. What is the bondâs yield to maturity and yield to call?

Coupon Rate	%5.00
Payment Frequency	semi-annually
Time until first call date (years)	2
Term of bond (years)	3
Call Price	$100.00
Current Price	$99.00

Coupon Payment
Yield to Call
Yield to Maturity

plumcheetah705

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