An investor purchases the following bonds for her portfolio and the settlement dates are given for each

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Question:

An investor purchases the following bonds for her portfolio and the settlement dates are given for each transaction.

For each bond, position calculates the accrued interest to the settlement date and the total purchase value (including accrued interest) paid by the investor to two decimal places. All bonds are semi-annual pay. Show all work, including accrued interest calculations.

a) $1 million par value of an Apple Inc. 2.75% bond due January 13th, 2025. The investor bought the bonds in the market at a clean price of 103.50 per bond. The bond uses a 30/360-day count convention and settles on September 25th, 2019.

b) $1 million par value of a Tesla 5.3% bond due August 15th, 2025. The investor bought the bonds in the market at a clean price of 89.75 per bond. The bond uses the 30/360-day count convention and settles on September 25th, 2019.

c) $1 million par value of Rogers Communications 4.0% bond due March 13th, 2024. The investor bought the bonds in the market at a clean price of 106.50 per bond. The bond has an actual/365-day count convention and settles on September 25th, 2019.

d) $1 million par value of a Government of Canada 1.25% due December 1st, 2047 real return bond. The settlement date is September 25th, 2019. The Base CPI value when the bond was issued was 123.29032. The Reference CPI value is 136.86000. Assume actual/365 day count convention and calculate the accrued interest including inflation compensation for this bond. Assume the bond was purchased at a clean price of 128.125. (CPI adjustment factors should be to five digits)