Refer to bond quotes in Figure 7.4 below. Calculate the price of the Canada Jun 01/18 to prove that it is 111.99 as shown. Assume that today is February 27, 2015. Assume the par value of a bond is $1,000. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

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FIGURE 7.4 Sample bond quotations PC Bond Indices on 2015.02.26 Data provided by: National Post Daily Total Return -0.22 -0.11 -0.25 -0.33 -0.21 -0.24 -0.21 -0.28 -0.24 -0.17 -0.15 -0.08 Bond Index Universe Average Yield 1.73 Index Level 1,000.21 683.94 1,084.71 1,602.71 216.66 973.78 873.24 1,170.03 1,223.77 1,103.18 154.48 Daily Price Return -0.23 -0.12 -0.27 -0.34 -0.22 -0.25 -0.22 -0.29 -0.25 -0.18 -0.16 -0.06 MTD Total Retum -0.52 -0.16 -0.48 -1 -0.75 -0.65 -0.67 -0.63 -0.61 -0.21 0.02 -0.75 0.04 Short Mid 1.01 1.66 2.68 1.01 1.54 1.06 2.04 1.98 2.22 1.97 -0.04 0.57 Long Canada All Gov't Federal Provincial Municipal All Corp Maple RRB 91 day T-bill Source: financialpost.com/markets/ data/bonds-pc.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a division of 574.55 399.15 na. Postmedia Network Inc. Canadian Bonds on 2015.02.27 Data provided by: National Post Federal Maturitų Date Jun 01/17 Sep 01/17 Jun 01/18 Corporate Maturity Date Feb 15/17 Mar 16/18 Mar 16/35 Mar 28/18 Mar 09/20 Jan 18/18 Jun 01/16 Sep 10/19 Jun 21/17 Aug 13/20 May 20/36 Mar 13/37 Jun 18/20 Jun 09/34 Jan 18/36 Apr 08/19 Dec 15/36 Mar 22/21 Aug 25/40 May 22/18 Mar 26/37 Jan 30/18 Bid $ Yield % 107,91 Bid $ Yield % 106.87 108.53 125.76 113.89 111.24 111.04 104.9 117.91 109.28 114.46 131.99 124.15 115.98 123.48 Соupon Сoupon Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada CHT Bell Bell Bell BMO 1.43 1.51 4.19 0.46 4.4 6.1 6.17 4.53 5.8 5.1 5.68 5.691 4.65 5.36 4.89 5.22 6.05 5.9 7.768 5.059 5.34 1.5 4.25 102.53 3.75 3.5 10.5 9.75 3.25 9.25 1.5 2.5 0.48 111.99 0.52 113.15 0.61 113.91 0.79 156.86 0.82 154.32 0.81 114.5 1.52 2.16 1.84 1.13 1.56 Jun 01/19 Jun 01/20 Mar 15/21 Jun 01/21 Jun 01/21 Jun 01/22 Jun 01/23 Jun 01/24 Jun 01/25 Jun 01/27 Jun 01/29 Jun 01/33 Jun 01/37 Jun 01/41 Jun 15/21 Provincial Provincial Jun 18/37 Feb 15/40 Feb 15/45 Jun 01/27 Mar 08/18 Sep 08/23 Sep 01/18 Jan 16/23 Enbridge Encana GE CAP GE CAP GWLife GWLife HydOne HydOne Loblaw Loblaw Loblaw Manulife Manulife Rogers Rogers Suncor Suncor SunLife 0.86 157.96 0.95 102.88 1.13 110.95 1.24 173.71 1.57 1.85 3.26 3.33 2.02 4.25 4.25 1.81 3.94 117,32 2,26 4.41 1.57 3.81 2.12 1.3 8. 5.75 5.75 173.32 1.45 1.63 161.04 1.81 155.97 152.12 122.71 123.43 116.3 1.9 4 141.7 1.96 3.8 115.18 1.28 6.11 125.95 Bid $ Yield % 2.65 2.86 2.88 2.33 0.88 1.82 0.96 Сoupon 4.7 5.8 5.39 5.59 113.24 123.37 109.75 BC HydQue HydQue Novasc 134.33 155.74 Ontario Ontario Quebec Quebec 6.6 4.2 8.1 4.5 142.36 145.2 109.87 149.32 112.99 155.99 9.375 1.74 Source: financialpost.com/markets/data/bonds-canadian.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a LO LO 12g00 555 t3 6564t 04g FIGURE 7.4 Sample bond quotations PC Bond Indices on 2015.02.26 Data provided by: National Post Daily Total Return -0.22 -0.11 -0.25 -0.33 -0.21 -0.24 -0.21 -0.28 -0.24 -0.17 -0.15 -0.08 Bond Index Universe Average Yield 1.73 Index Level 1,000.21 683.94 1,084.71 1,602.71 216.66 973.78 873.24 1,170.03 1,223.77 1,103.18 154.48 Daily Price Return -0.23 -0.12 -0.27 -0.34 -0.22 -0.25 -0.22 -0.29 -0.25 -0.18 -0.16 -0.06 MTD Total Retum -0.52 -0.16 -0.48 -1 -0.75 -0.65 -0.67 -0.63 -0.61 -0.21 0.02 -0.75 0.04 Short Mid 1.01 1.66 2.68 1.01 1.54 1.06 2.04 1.98 2.22 1.97 -0.04 0.57 Long Canada All Gov't Federal Provincial Municipal All Corp Maple RRB 91 day T-bill Source: financialpost.com/markets/ data/bonds-pc.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a division of 574.55 399.15 na. Postmedia Network Inc. Canadian Bonds on 2015.02.27 Data provided by: National Post Federal Maturitų Date Jun 01/17 Sep 01/17 Jun 01/18 Corporate Maturity Date Feb 15/17 Mar 16/18 Mar 16/35 Mar 28/18 Mar 09/20 Jan 18/18 Jun 01/16 Sep 10/19 Jun 21/17 Aug 13/20 May 20/36 Mar 13/37 Jun 18/20 Jun 09/34 Jan 18/36 Apr 08/19 Dec 15/36 Mar 22/21 Aug 25/40 May 22/18 Mar 26/37 Jan 30/18 Bid $ Yield % 107,91 Bid $ Yield % 106.87 108.53 125.76 113.89 111.24 111.04 104.9 117.91 109.28 114.46 131.99 124.15 115.98 123.48 Соupon Сoupon Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada CHT Bell Bell Bell BMO 1.43 1.51 4.19 0.46 4.4 6.1 6.17 4.53 5.8 5.1 5.68 5.691 4.65 5.36 4.89 5.22 6.05 5.9 7.768 5.059 5.34 1.5 4.25 102.53 3.75 3.5 10.5 9.75 3.25 9.25 1.5 2.5 0.48 111.99 0.52 113.15 0.61 113.91 0.79 156.86 0.82 154.32 0.81 114.5 1.52 2.16 1.84 1.13 1.56 Jun 01/19 Jun 01/20 Mar 15/21 Jun 01/21 Jun 01/21 Jun 01/22 Jun 01/23 Jun 01/24 Jun 01/25 Jun 01/27 Jun 01/29 Jun 01/33 Jun 01/37 Jun 01/41 Jun 15/21 Provincial Provincial Jun 18/37 Feb 15/40 Feb 15/45 Jun 01/27 Mar 08/18 Sep 08/23 Sep 01/18 Jan 16/23 Enbridge Encana GE CAP GE CAP GWLife GWLife HydOne HydOne Loblaw Loblaw Loblaw Manulife Manulife Rogers Rogers Suncor Suncor SunLife 0.86 157.96 0.95 102.88 1.13 110.95 1.24 173.71 1.57 1.85 3.26 3.33 2.02 4.25 4.25 1.81 3.94 117,32 2,26 4.41 1.57 3.81 2.12 1.3 8. 5.75 5.75 173.32 1.45 1.63 161.04 1.81 155.97 152.12 122.71 123.43 116.3 1.9 4 141.7 1.96 3.8 115.18 1.28 6.11 125.95 Bid $ Yield % 2.65 2.86 2.88 2.33 0.88 1.82 0.96 Сoupon 4.7 5.8 5.39 5.59 113.24 123.37 109.75 BC HydQue HydQue Novasc 134.33 155.74 Ontario Ontario Quebec Quebec 6.6 4.2 8.1 4.5 142.36 145.2 109.87 149.32 112.99 155.99 9.375 1.74 Source: financialpost.com/markets/data/bonds-canadian.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a LO LO 12g00 555 t3 6564t 04g

Answer rating: 100% (QA)

price of the bond 118 today 27022015 maturity data 1062018 p... View the full answer