Mr. Perez acquired the 18.11.05 100 Debentures of the State that pay coupons on July 30...

 

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Mr. Perez acquired the 18.11.05 100 Debentures of the State that pay coupons on July 30 of each year at 5.00% and whose maturity date is 30.07.12. The purchase price (ex- coupon) on the acquisition date was 110.315% over the nominal value of the title (1,000 euros). After holding the portfolio for four years, on 11.11.09 it decided to sell them, when the market interest rate for this type of financial asset was 1.72%. With these data, it is requested: Market interest rate for this reference on 18.11.05 (purchase date) 2. Yield to maturity on the date of acquisition of the 100 securities 3. Yield associated with the purchase of the 100 securities on 18.11.05 and subsequent sale in the secondary market on 11/18/09 4. Yield obtained by Mr. Pérez in the previous purchase and sale transaction in the following cases: a) The market interest rate on 11/18/09 would have been 3.26% b) The market interest rate on 11/18/09 would have been 4.50% 5. Yield obtained in the purchase of the 100 securities on 18.11.05 and subsequent sale in the secondary market on 11.18.09 if the acquisition fee was equal to 0.20% of the nominal of the securities and the sale fee was equal to 0.25% of the nominal of the securities and that the rates are those offered by the exercise in that period. 6. Imagine that, instead of selling the securities on 11/18/09, Mr. Pérez decided to keep them in the portfolio and sell them later. What would have been the yield if the sale date had been 18.11.10 when the current rates were 2.77%? What if it had been 18.11.11 when the current rates were 5.26%? 7. What would have happened if the rate raised quick after the purchase date and Mr. Martinez had sold the securities on 18.12.05 (one month after the purchase) being the interest rates for this asset 5.26%? Mr. Perez acquired the 18.11.05 100 Debentures of the State that pay coupons on July 30 of each year at 5.00% and whose maturity date is 30.07.12. The purchase price (ex- coupon) on the acquisition date was 110.315% over the nominal value of the title (1,000 euros). After holding the portfolio for four years, on 11.11.09 it decided to sell them, when the market interest rate for this type of financial asset was 1.72%. With these data, it is requested: Market interest rate for this reference on 18.11.05 (purchase date) 2. Yield to maturity on the date of acquisition of the 100 securities 3. Yield associated with the purchase of the 100 securities on 18.11.05 and subsequent sale in the secondary market on 11/18/09 4. Yield obtained by Mr. Pérez in the previous purchase and sale transaction in the following cases: a) The market interest rate on 11/18/09 would have been 3.26% b) The market interest rate on 11/18/09 would have been 4.50% 5. Yield obtained in the purchase of the 100 securities on 18.11.05 and subsequent sale in the secondary market on 11.18.09 if the acquisition fee was equal to 0.20% of the nominal of the securities and the sale fee was equal to 0.25% of the nominal of the securities and that the rates are those offered by the exercise in that period. 6. Imagine that, instead of selling the securities on 11/18/09, Mr. Pérez decided to keep them in the portfolio and sell them later. What would have been the yield if the sale date had been 18.11.10 when the current rates were 2.77%? What if it had been 18.11.11 when the current rates were 5.26%? 7. What would have happened if the rate raised quick after the purchase date and Mr. Martinez had sold the securities on 18.12.05 (one month after the purchase) being the interest rates for this asset 5.26%?