Reference no: EM133091716
Question -
Part A - Find the price of the bond forward contract if:
1. The bond pays semi-annual coupon payments of $50;
2. The first coupon occurs 181 days after issue, the secont 365 days, the third 547 days, and the fourth 730 days;
3. The investor wants to sell the bond at 731st day;
4. Today is 150 days into the life of the bond;
5. the price of the bond today is $1010.25;
6. The yield to maturity is 8% per annum
If needed, round your final answer to 2 decimal places.
Part B - Suppose you short (sell) the forward contract. Find the value of the forward contract at initiation if the yield to maturity is 8% per annum. Explain your answer. If needed, round your final answer to 2 decimal places.
Part C - Suppose you short (sell) the forward contract. Find the value of the forward contract at t=515 days if the new price of the bond is $1025.375 and yield to maturity is 7% per annum. If needed, round your final answer to 2 decimal places.
|
What is the size of the month-end payments
: 1. Alexandra's student loan of $23,500 at 3.42% compounded quarterly was amortized over 5 years with payments made at the end of every month.
|
|
Statement for a nonprofit sports organization
: What is a mission statement for a nonprofit sports organization!
|
|
How the contract revenue should be allocated
: If there is more than one performance obligation, how the contract revenue should be allocated to various components of the contract by AGI
|
|
Record the journal entries for each transaction
: Barbara Company uses a Job Order Costing System. During the month the following transactions were completed. Record the journal entries for each transaction
|
|
Find the value of the forward contract at initiation
: Suppose you short (sell) the forward contract. Find the value of the forward contract at initiation if the yield to maturity is 8% per annum
|
|
What would be effect of these entries on total liabilities
: X Company, a merchandiser, prepares monthly financial statements. What would be the effect of these entries on total liabilities in April
|
|
Potential trigger for contingency plan for fire
: Potential Trigger for contingency plan for fire, property damage, equipment damage, theft and lost revenue
|
|
Find the cost of the equipment purchased during the year
: The balance in the Equipment account was $20,360; on December 31, the balance was $15,740. Find the cost of the equipment purchased during the year
|
|
Role of overseas foreign workers in the stabilization
: 1. Enumerate three arguments on the role of Overseas Foreign Workers in the stabilization of FX of the peso.
|