Question: answers r correct how do u solve Fin 315 Practice Problems for Treasury Bonds, using the Black Mandsy (1019.87) quotes 1. Suppose that someooe wanted
Fin 315 Practice Problems for Treasury Bonds, using the Black Mandsy (1019.87) quotes 1. Suppose that someooe wanted to boy a $1,000 face value T thood that matires in November 2001. How moch would it have cost on Black Monday? Answen \$ 1411,95 per $1,000 face value 2. How moch would the same beod have cost on the previes dry, which was Friday, Oet. It 1987 ? Aaswer: 51403.13 per 51.000 face vahu: 3. For the November 2001 T-boed, did it yicis rist or fal on Bliek Miadoy? Answer lts yield Rose (fellicinte Oos) 4. What happened to the prise and yield fos the Ninceter 3001 I -boal beraeen when it was fire axetioned off and Black Moodry? the yicld tas Ristr fallig (ertele one) by aboot 550 bain points. 5. How much is the scmin-antayl coupon gayment for a 5L.000 face valixe Tobod thut mature in November 2001? Answer. The semi-annual coupon payment is 578.75. per 51,000 face value: 6. Suppose that the inflation rate was 4% on Black Monday. Whar's the aocital yield and the oeal yield for the November 2001 T T-bond on flack Monday? Answer The numinal yicld is 1018 stad the real yould at 18% Fin 315 Practice Problems for Treasury Bonds, using the Black Mandsy (1019.87) quotes 1. Suppose that someooe wanted to boy a $1,000 face value T thood that matires in November 2001. How moch would it have cost on Black Monday? Answen \$ 1411,95 per $1,000 face value 2. How moch would the same beod have cost on the previes dry, which was Friday, Oet. It 1987 ? Aaswer: 51403.13 per 51.000 face vahu: 3. For the November 2001 T-boed, did it yicis rist or fal on Bliek Miadoy? Answer lts yield Rose (fellicinte Oos) 4. What happened to the prise and yield fos the Ninceter 3001 I -boal beraeen when it was fire axetioned off and Black Moodry? the yicld tas Ristr fallig (ertele one) by aboot 550 bain points. 5. How much is the scmin-antayl coupon gayment for a 5L.000 face valixe Tobod thut mature in November 2001? Answer. The semi-annual coupon payment is 578.75. per 51,000 face value: 6. Suppose that the inflation rate was 4% on Black Monday. Whar's the aocital yield and the oeal yield for the November 2001 T T-bond on flack Monday? Answer The numinal yicld is 1018 stad the real yould at 18%
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