Question: I need the answers to this document. I need help finding the invoice and also finding the repos. Homework 2 Fin 445/545 Fall-2016 Due on

 I need the answers to this document. I need help finding

I need the answers to this document. I need help finding the invoice and also finding the repos.

the invoice and also finding the repos. Homework 2 Fin 445/545 Fall-2016

Homework 2 Fin 445/545 Fall-2016 Due on September 9, 2016 1. Compute invoice price of the following positions for settlement date Sept 2, 2015: (Do not use the excel formula for accrued interest). Position Buy Sell Buy Sell Maturity 5/31/2018 5/15/2021 11/15/2039 8/15/2045 Coupon 2.375 8.125 4.375 2.875 Bid Price 103.7266 134.9891 126.0313 98.2969 Asked Price 103.7422 134.8047 126.0938 98.3281 2. You are given the following data on 8/24/2015 settlement date: Maturity 8/31/2017 8/15/2025 Coupon 1.875 6.875 Bid Price 102.4922 144.6719 Asked Price 102.5078 144.6875 and the following data on 8/28/2015 settlement date: Maturity 8/31/2017 8/15/2025 Coupon 1.875 6.875 Bid Price 102.1875 142.4531 Asked Price 102.2031 142.4688 a) On 8/24/2015, open a repo position using the 8/31/2017 maturity bond and close the position on 8/28/2015. Compute the profit/loss on this transaction. b) On 8/24/2015, open a reverse repo position using the 8/15/2025 maturity bond and close the position on 8/28/2015. Compute the profit/loss on this transaction. c) On 8/24/2015, open a repo position using the 8/15/2025 maturity bond and close the position on 8/28/2015. Compute the profit/loss on this transaction. d) On 8/24/2015, open a reverse repo position using the 8/31/2017 maturity bond and close the position on 8/28/2015. Compute the profit/loss on this transaction. Explain why you made a profit/loss in each of the above transactions. Also, make sure to account for accrued interest in your calculations and choose the bid or ask price appropriately. If you are using the Excel function for accrued interest, make up an Issue Date as the coupon payment date just prior to the settlement date. 3. Use the yield function in excel and compute the asked yield for the bonds in problem 1 above. Use clean prices to compute yields

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