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Calculate the price of the instruments

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Reference no: EM133002107

Problem 1: On the 1st of September 2020, you bought the following portfolio of Commonwealth Government bonds. Calculate the amount you paid for each instrument per $100 face value and thus the total for the equally weighted portfolio:

Yields as at 1st September 2020

Treasury Bond 151 2.00% 21-Dec-2021: 1.228
Treasury Bond 137 2.75% 21-Apr-2024: 0.79
Treasury Bond 164 0.50% 21-Sep-2026: 1.044
Treasury Bond 155 2.50% 21-May-2030: 1.966
Treasury Bond 163 1.00% 21-Nov-2031: 1.888
Treasury Bond 147 3.25% 21-Jun-2039: 0.545

Problem 2: Calculate the price of the instruments if they were sold on 31st August 2021

Yields as at 31 August 2021

Treasury Bond 151 2.00% 21-Dec-2021: 1.783
Treasury Bond 137 2.75% 21-Apr-2024: 1.256
Treasury Bond 164 0.50% 21-Sep-2026: 0.63
Treasury Bond 155 2.50% 21-May-2030: 1.769
Treasury Bond 163 1.00% 21-Nov-2031: 2.132
Treasury Bond 147 3.25% 21-Jun-2039: 2.263

Reference no: EM133002107

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