Calculate the clean price of the bond issue

Assignment Help Financial Management

Reference no: EM132042167

a) $200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October 23, 1992, at a dollar price of 105-20 (this is the clean price) with a yield to maturity of 7.083% with the bond originally being issued at 11/15/1977. Face value per unit is $1,000.

i) Calculate the clean price of the bond issue

ii) Calculate the accrued interest of the bond issue

iii) Calculate the full price of the bond issue

b) $200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October 23, 1992, at a dollar price (clean price) with a yield to maturity of 7.083% with the bond originally being issued at 11/15/1977. Calculate the full price (per unit of the bond). Note: On a per unit basis, the answers to(a)and(b)should be the same.Anydifferencemustbe due to rounding error only.

Reference no: EM132042167

Questions Cloud

Suppose the equilibrium real federal funds rate : Suppose the equilibrium real federal funds rate is 1 percent, the target inflation rate is 2 percent, the current inflation rate is 0.8 percent

Allocative and productive efficiency : Why is the portion of the marginal cost curve above the minimum average variable cost the short run supply curve in Perfect Competition?

Impact do economics and business have on an individual : What sort of impact do economics and business have on an individual's "values"? What happens when money moves everything (e.g. cultural, political, and moral)?

Explain value of preparing a contribution income statement : A newspaper publishing company produces and distributes a magazine to its subscribers once each month. Although the company performs the entire publishing.

Calculate the clean price of the bond issue : Calculate the clean price of the bond issue. Calculate the accrued interest of the bond issue. Calculate the full price of the bond issue.

Formula for the optimal markup of price over cost : Solve for P as a function of MC and ?. This will give you a formula for the optimal markup of price over cost.

Describe the goal of financial management : Describe the goal of financial management to both an investor and a corporation. Be sure to include references for your response.

Describe the two idps detection approaches : Describe the two IDPS detection approaches and discuss the advantages and disadvantages both.

Compute the current break-even point in units : Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used.

User Account

All Pages