B D E F G H J K L M N Basic bond question This $100k face value bond pays $6,500 in total annual interest. This total interest is paid in two coupon payments made semiannually and the bond matures on 15 October 2006. Assume the coupon dates are the same every year. 1) Find the invoice price of this treasury bond. 1 TREASURY BOND CALCULATION 2 3 Current date 20-Feb-01 4. Previous interest payment date 15-Oct-00 5 Next interest payment date 15-Apr-01 6 Coupon 3,250.00 7 8 Days since last coupon date Days between last coupon 9 date and next coupon date 10 11 Accrued interest 12 13 14 Bond price 107,152.00 15 Accrued interest 16 Invoice price 17 19 2) Create a table WITH DATES that show the relevant cash flows for the bond. 3) Find the YTM in two ways (there may be slight differences in the rates depending on your methods). B D E F G H J K L M N Basic bond question This $100k face value bond pays $6,500 in total annual interest. This total interest is paid in two coupon payments made semiannually and the bond matures on 15 October 2006. Assume the coupon dates are the same every year. 1) Find the invoice price of this treasury bond. 1 TREASURY BOND CALCULATION 2 3 Current date 20-Feb-01 4. Previous interest payment date 15-Oct-00 5 Next interest payment date 15-Apr-01 6 Coupon 3,250.00 7 8 Days since last coupon date Days between last coupon 9 date and next coupon date 10 11 Accrued interest 12 13 14 Bond price 107,152.00 15 Accrued interest 16 Invoice price 17 19 2) Create a table WITH DATES that show the relevant cash flows for the bond. 3) Find the YTM in two ways (there may be slight differences in the rates depending on your methods)