Reference no: EM132616715

-Compute the holding period yield (%pa to 2 decimal places) on a simple interest basis if a $100,000, 180-day bill (in a 365-day country is purchased at a yield to maturity of 5%pa and 90 days later is sold at a yield of 4%pa by an investor after holding it 90 days. (Please set out intermediate results.) Comment on the size of the holding period yield relative to the original yield to maturity.

-Using the three-step method, compute the dirty price (to 3 decimal places) of a $100 face-value bond maturing on 15-Mar-2027, paying a 4%pa semi-annual coupons with a yield to maturity of 2%pa for settlement on 05-Aug-2020. Set out the intermediate calculations for each of the three steps.(Note there are 41 days between 05-Aug-20 and 15-Sep-2020. There are 184 days between 15-Mar-2020 and 15-Sep-20200)

-Compute the price (to 3 decimal places) of a 5-year, $100 face-value bond paying semi-annual coupons of 7%p.a. when the yield to maturity is 3%p.a.