Central Money markets Unit from the Hong Kong Monetary Authority shows the Bond Price Bulletin. The Bulletin, available at the following link, shows a series of bond prices in Hong Kong: https://www.cmu.org.hk/cmupbb_ws/eng/page/wmp0100/wmp010001.aspx

a) Assuming that you are looking for the bonds with at least a 2.00% coupon rate for 5 years’ investment, please choose two bonds from the list and mark down all the details, such as the price provider, CCY, issuer, coupon (%), maturity, bid price and the last updated date for part (b) and (c).

b) Based on the information in part (a), and presuming that today’s date is 1 January 2014 and the information is still valid, evaluate the rate of return of these two bonds, respectively, if you hold the bonds until 31 December 2019.

c) Please list one bond with zero coupon from the list and analyze why investors interest in zero coupon bond investments.

Answer rating: 100% (QA)

a Price Provider CCY Issuer Coupon Maturity Bid Price Offer Price Bid Yield Offer Yield Bk of China ... View the full answer