Calculate the price of a one-year bond with quarterly coupons of 8^ per annum, a yield of

Fantastic news! We've Found the answer you've been seeking!

Question:

Calculate the price of a one-year bond with quarterly coupons of 8^ per annum, a yield of 6% per annum and face value of $100 where the bond is purchased with 50 days to the first coupon payment and there are 182 days in the coupon period.

Related Book For answer-question

Principles of Macroeconomics

ISBN: 978-0134078809

12th edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

See More Books

Posted Date: Apr 22, 2024 07:05 AM

See More Questions

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
Open the Excel file called spot rates which contains 1-year and 2-year spot rates from June 1976 to July 2020. a. Calculate the mean and standard deviation for each column of data. What is the...
Calculate the price of a 3 year bond with a face value of $10000, coupon rate of 7% annually and annual market yield of 7% annually. Coupon payments are made semi annually. Q3) What is the yield to...
Assume that the Central bank decides to sell government bonds to the commercial banks. a.) Use the demand and supply curves for loanable funds to show the effect of this measure on the interest rate....
Consider a system with a loop transfer function We wish to obtain a resonant peak MpÏ) = 3.0 dB for the closed-loop system. The peak occurs between 6 and 9 rad/s and is only 1.25 dB. Plot the...
Three point charges are fixed in place in a right angled in which q1 is 0.71 micro coulombs and q2 = - 0.67 micro coulomb. What is the magnitude and direction of the elec force on the 1.0 micro...
Selected transactions for L. Takemoto, an interior decorating firm, in its first month of business, are shown below and on page 86. Jan. 2 Invested $15,000 cash in the business in exchange for common...
What steps should you take prior to making a purchase? What steps should you take while making a purchase? What steps should you make after you make a purchase? What is buyer's remorse? Have you...
Consider the three stocks in the following table. Pi represents a price per share at time t (year), and Qi represents shares outstanding (numbers) at time t. Stocks Po Qo P Q1 P2 Q2 A 110 200m 120...
A satellite is orbiting the earth, and is headed straight for a collision with another satellite on the same orbit. The satellite fires its jets backwards in order to slightly decrease its speed....
Mickey, a daredevil mouse of mass 0.0201 kg, is attempting to become the world's first "mouse cannonball." He is loaded into a spring-powered gun pointing up at some angle and is shot into the air....
A vehicle is initially traveling at 3 m / s in the negative x direction. After 4 seconds the vehicle is traveling 2 m / s in the positive y direction. Assume the vehicle has a constant acceleration...
Date Explanation Units Unit Cost Total Cost 1-Jan Inventory 250 $ 12.00 $ 3,000.00 15-Feb Purchases 155 $ 13.50 $ 2,092.50 12-Apr Purchases 260 $ 13.90 $ 3,614.00 5-May Sale 490 3-Jun Purchases 200 $...
One uniform sphere of matter has a radius of 0.50 m and a mass of 65 kg. A second uniform sphere has a radius of 0.80 m and a mass of 87 kg. The surfaces of the spheres are 1.20 m apart, as measured...
1. Which of the following is NOT a relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project? a. Shipping and installation costs. b. Cannibalization effects....
Repeat Exercise 16.6 using the t-test of the coefficient of correlation. Is this result identical to the one you produced in Exercise 16.6?
Nairobi Co. has an authorized share capital of 500,000 ordinary shares of 1 each. The following trial balance was extracted from the accounts as at 31 December 20X7. The following matters are to be...
The following income statement and balance sheet have been prepared for Joburg Co. After the accounts were prepared, the following information became available. 1. Interest payable on the long-term...
Kiev Co. purchases a machine on 1 January 20X0 for 240,000. Depreciation is charged at 10 per cent on cost. On 30 June 20X4, the machine is sold for 120,000 and the proceeds used to buy a new vehicle...

Calculate the price of a one-year bond with quarterly coupons of 8^ per annum, a yield of

Question:

Expert Answer:

To calculate the price of a oneyear bond with quarterly coupons we need to determine the present val... View the full answer

Principles of Macroeconomics

Students also viewed these finance questions