Refer to bond quotes in Figure 7.4 below. Calculate the price of the Canada Jun 01/18 to
Fantastic news! We've Found the answer you've been seeking!
Question:
Refer to bond quotes in Figure 7.4 below. Calculate the price of the Canada Jun 01/18 to prove that it is 111.99 as shown. Assume that today is February 27, 2015. Assume the par value of a bond is $1,000. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Transcribed Image Text:
FIGURE 7.4 Sample bond quotations PC Bond Indices on 2015.02.26 Data provided by: National Post Daily Total Return -0.22 -0.11 -0.25 -0.33 -0.21 -0.24 -0.21 -0.28 -0.24 -0.17 -0.15 -0.08 Bond Index Universe Average Yield 1.73 Index Level 1,000.21 683.94 1,084.71 1,602.71 216.66 973.78 873.24 1,170.03 1,223.77 1,103.18 154.48 Daily Price Return -0.23 -0.12 -0.27 -0.34 -0.22 -0.25 -0.22 -0.29 -0.25 -0.18 -0.16 -0.06 MTD Total Retum -0.52 -0.16 -0.48 -1 -0.75 -0.65 -0.67 -0.63 -0.61 -0.21 0.02 -0.75 0.04 Short Mid 1.01 1.66 2.68 1.01 1.54 1.06 2.04 1.98 2.22 1.97 -0.04 0.57 Long Canada All Gov't Federal Provincial Municipal All Corp Maple RRB 91 day T-bill Source: financialpost.com/markets/ data/bonds-pc.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a division of 574.55 399.15 na. Postmedia Network Inc. Canadian Bonds on 2015.02.27 Data provided by: National Post Federal Maturitų Date Jun 01/17 Sep 01/17 Jun 01/18 Corporate Maturity Date Feb 15/17 Mar 16/18 Mar 16/35 Mar 28/18 Mar 09/20 Jan 18/18 Jun 01/16 Sep 10/19 Jun 21/17 Aug 13/20 May 20/36 Mar 13/37 Jun 18/20 Jun 09/34 Jan 18/36 Apr 08/19 Dec 15/36 Mar 22/21 Aug 25/40 May 22/18 Mar 26/37 Jan 30/18 Bid $ Yield % 107,91 Bid $ Yield % 106.87 108.53 125.76 113.89 111.24 111.04 104.9 117.91 109.28 114.46 131.99 124.15 115.98 123.48 Соupon Сoupon Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada CHT Bell Bell Bell BMO 1.43 1.51 4.19 0.46 4.4 6.1 6.17 4.53 5.8 5.1 5.68 5.691 4.65 5.36 4.89 5.22 6.05 5.9 7.768 5.059 5.34 1.5 4.25 102.53 3.75 3.5 10.5 9.75 3.25 9.25 1.5 2.5 0.48 111.99 0.52 113.15 0.61 113.91 0.79 156.86 0.82 154.32 0.81 114.5 1.52 2.16 1.84 1.13 1.56 Jun 01/19 Jun 01/20 Mar 15/21 Jun 01/21 Jun 01/21 Jun 01/22 Jun 01/23 Jun 01/24 Jun 01/25 Jun 01/27 Jun 01/29 Jun 01/33 Jun 01/37 Jun 01/41 Jun 15/21 Provincial Provincial Jun 18/37 Feb 15/40 Feb 15/45 Jun 01/27 Mar 08/18 Sep 08/23 Sep 01/18 Jan 16/23 Enbridge Encana GE CAP GE CAP GWLife GWLife HydOne HydOne Loblaw Loblaw Loblaw Manulife Manulife Rogers Rogers Suncor Suncor SunLife 0.86 157.96 0.95 102.88 1.13 110.95 1.24 173.71 1.57 1.85 3.26 3.33 2.02 4.25 4.25 1.81 3.94 117,32 2,26 4.41 1.57 3.81 2.12 1.3 8. 5.75 5.75 173.32 1.45 1.63 161.04 1.81 155.97 152.12 122.71 123.43 116.3 1.9 4 141.7 1.96 3.8 115.18 1.28 6.11 125.95 Bid $ Yield % 2.65 2.86 2.88 2.33 0.88 1.82 0.96 Сoupon 4.7 5.8 5.39 5.59 113.24 123.37 109.75 BC HydQue HydQue Novasc 134.33 155.74 Ontario Ontario Quebec Quebec 6.6 4.2 8.1 4.5 142.36 145.2 109.87 149.32 112.99 155.99 9.375 1.74 Source: financialpost.com/markets/data/bonds-canadian.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a LO LO 12g00 555 t3 6564t 04g FIGURE 7.4 Sample bond quotations PC Bond Indices on 2015.02.26 Data provided by: National Post Daily Total Return -0.22 -0.11 -0.25 -0.33 -0.21 -0.24 -0.21 -0.28 -0.24 -0.17 -0.15 -0.08 Bond Index Universe Average Yield 1.73 Index Level 1,000.21 683.94 1,084.71 1,602.71 216.66 973.78 873.24 1,170.03 1,223.77 1,103.18 154.48 Daily Price Return -0.23 -0.12 -0.27 -0.34 -0.22 -0.25 -0.22 -0.29 -0.25 -0.18 -0.16 -0.06 MTD Total Retum -0.52 -0.16 -0.48 -1 -0.75 -0.65 -0.67 -0.63 -0.61 -0.21 0.02 -0.75 0.04 Short Mid 1.01 1.66 2.68 1.01 1.54 1.06 2.04 1.98 2.22 1.97 -0.04 0.57 Long Canada All Gov't Federal Provincial Municipal All Corp Maple RRB 91 day T-bill Source: financialpost.com/markets/ data/bonds-pc.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a division of 574.55 399.15 na. Postmedia Network Inc. Canadian Bonds on 2015.02.27 Data provided by: National Post Federal Maturitų Date Jun 01/17 Sep 01/17 Jun 01/18 Corporate Maturity Date Feb 15/17 Mar 16/18 Mar 16/35 Mar 28/18 Mar 09/20 Jan 18/18 Jun 01/16 Sep 10/19 Jun 21/17 Aug 13/20 May 20/36 Mar 13/37 Jun 18/20 Jun 09/34 Jan 18/36 Apr 08/19 Dec 15/36 Mar 22/21 Aug 25/40 May 22/18 Mar 26/37 Jan 30/18 Bid $ Yield % 107,91 Bid $ Yield % 106.87 108.53 125.76 113.89 111.24 111.04 104.9 117.91 109.28 114.46 131.99 124.15 115.98 123.48 Соupon Сoupon Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada CHT Bell Bell Bell BMO 1.43 1.51 4.19 0.46 4.4 6.1 6.17 4.53 5.8 5.1 5.68 5.691 4.65 5.36 4.89 5.22 6.05 5.9 7.768 5.059 5.34 1.5 4.25 102.53 3.75 3.5 10.5 9.75 3.25 9.25 1.5 2.5 0.48 111.99 0.52 113.15 0.61 113.91 0.79 156.86 0.82 154.32 0.81 114.5 1.52 2.16 1.84 1.13 1.56 Jun 01/19 Jun 01/20 Mar 15/21 Jun 01/21 Jun 01/21 Jun 01/22 Jun 01/23 Jun 01/24 Jun 01/25 Jun 01/27 Jun 01/29 Jun 01/33 Jun 01/37 Jun 01/41 Jun 15/21 Provincial Provincial Jun 18/37 Feb 15/40 Feb 15/45 Jun 01/27 Mar 08/18 Sep 08/23 Sep 01/18 Jan 16/23 Enbridge Encana GE CAP GE CAP GWLife GWLife HydOne HydOne Loblaw Loblaw Loblaw Manulife Manulife Rogers Rogers Suncor Suncor SunLife 0.86 157.96 0.95 102.88 1.13 110.95 1.24 173.71 1.57 1.85 3.26 3.33 2.02 4.25 4.25 1.81 3.94 117,32 2,26 4.41 1.57 3.81 2.12 1.3 8. 5.75 5.75 173.32 1.45 1.63 161.04 1.81 155.97 152.12 122.71 123.43 116.3 1.9 4 141.7 1.96 3.8 115.18 1.28 6.11 125.95 Bid $ Yield % 2.65 2.86 2.88 2.33 0.88 1.82 0.96 Сoupon 4.7 5.8 5.39 5.59 113.24 123.37 109.75 BC HydQue HydQue Novasc 134.33 155.74 Ontario Ontario Quebec Quebec 6.6 4.2 8.1 4.5 142.36 145.2 109.87 149.32 112.99 155.99 9.375 1.74 Source: financialpost.com/markets/data/bonds-canadian.html, Feb 27, 2015; Material reprinted with the express permission of National Post, a LO LO 12g00 555 t3 6564t 04g
Expert Answer:
Answer rating: 100% (QA)
price of the bond 118 today 27022015 maturity data 1062018 p... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Calculate the price of the following bond: FV = $1,000; coupon rate = 6 percent, paid semi-annually; market rate = 4 percent; term to maturity = 10 years.
-
In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars (US$). a. A Belgian stock priced at 103.2 euros () when the exchange rate is...
-
Calculate the price of a three-month European call option on the spot price of silver. The three-month futures price is $12, the strike price is $13, the risk-free rate is 4%, and the volatility of...
-
Modify the test client in Turtle to take an odd integer \(n\) as a command-line argument and draw a star with \(\mathrm{n}\) points.
-
Using a set of five dice, roll the dice and determine the mean number of dots showing on the five dice. Repeat the experiment until you have 25 sample means. a. Draw a dotplot showing the...
-
A polymer is manufactured in a batch chemical process. Viscosity measurements are normally made on each batch, and long experience with the process has indicated that the variability in the process...
-
The following transactions occurred during the month for Mona Wade, CPA, PC: a. Wade opened an accounting firm by investing \($16,500\) cash and office furniture valued at \($5,300\). The business...
-
CVP analysis, margin of safety Suppose Latin Corp.s breakeven point is revenues of $1,500,000. Fixed costs are $600,000. 1. Compute the contribution margin percentage. 2. Compute the selling price if...
-
Fill in the two blank worksheets, "Buyer's Estimated Net Cost" and "Seller's Estimated Net Proceeds," based on the information below. You must decide which amounts are credits or debits for the...
-
Bills Boards (BB) is an outdoor advertising company founded by William Longfall. William knows very little accounting so he hired a friend to keep the books. Unfortunately, William did not review his...
-
a) Convert the following bit stream to a signal using an appropriate encoding scheme that matches the requirements given. Write which signal encoding scheme you are using. Data: 1 0 1 0 110111000001...
-
On January 1 , 2 0 2 3 , Fisher Corporation purchased 4 0 percent ( 7 2 , 0 0 0 shares ) of the common stock of Bowden, Incorporated, for $ 9 9 2 , 0 0 0 in cash and began to use the equity method...
-
The income statement and balance sheet of Sheng Siong Group Ltd ("Sheng Siong"), one of Singapore's largest retailers with 67 stores located across the island. over the last three years are provided...
-
Golf Academy, Incorporated, provides private golf lessons. Its unadjusted trial balance at December 3 1 , 2 0 2 1 , follows, along with information about selected accounts. Account Names Debit...
-
Identify the major purpose of cost accounting. Know the two basic types of cost accounting systems. Know the important features of a job order cost system. Know the steps in the flow of costs. Know...
-
A manufacturing company reports the following for the period: Inventories Beginning Ending Raw materials $ 1 8 , 1 2 0 $ 1 2 , 1 0 0 Work in process 9 , 5 0 0 1 1 , 3 0 0 Finished goods 1 2 , 5 6 0...
-
Identify at least three (3) types of minority groups in the workplace. How the above mentioned minority groups are affected in everyday life in the workplace. Provide at least three (3)...
-
In Problems, solve each system of equations. x + 2y + 3z = 5 y + 11z = 21 5y + 9z = 13
-
When a known future cash outflow in a foreign currency is hedged by a company using a forward contract, there is no foreign exchange risk. When it is hedged using futures contracts, the daily...
-
Consider a chooser option where the holder has the right to choose between a European call and a European put at any time during a two-year period. The maturity dates and strike prices for the calls...
-
Suppose that a bond portfolio with a duration of 12 years is hedged using a futures contract in which the underlying asset has a duration of four years. What is likely to be the impact on the hedge...
-
Why is the thermodynamic process also called cyclic process? Explain with suitable example.
-
A mercury manometer reads \(40 \mathrm{~cm}\) at \(30^{\circ} \mathrm{C}\) and \(1 \mathrm{~atm}\). Determine the absolute pressure, given that \(ho_{\mathrm{Hg}}=14.02 \mathrm{~g} /...
-
Define isothermal, isochoric and isobaric processes with suitable examples.
Study smarter with the SolutionInn App