Reference no: EM132945129
Questions -
Q1) At a tender of $1 m, 182 days, a US T-bill is quoted at a price of $975,000. Calculate the discount rate and the corresponding yield unit rate (r). The day count convention is ACT/360.
Q2) A bank owns a bond with an annual coupon rate of 6% and a redemption value of €100. The day count convention is 30/360. Please calculate:
a) The dirty price, clean price and interest accrued of the bond if today the time to maturity is 7 years and the current market yield is 7% p.a.
b) The yield to maturity (YTM) of the bond if today's price is €110.
Q3) An Aaa rated government bond with an annual coupon of 9% (paid semi-annually) matures on 01.03.2026. The redemption value is €100. You purchase the bond today (27.05.2021). The day count convention is 30/360. Please calculate:
a) The dirty price, clean price and interest accrued of the bond if the current market yield is 6% p.a.
b) The yield to maturity (YTM) of the bond according to ISMA if today's clean price is €130.
Please write in your solutions sheet the input parameters typed in your financial calculator.
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