Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
An interest rate futures of Treasury Bond is currently trading at 140 or 140% of 100,000 par. One of the many bonds, Bond X , is eligible for delivery as follows:
Bond Coupon Rate Conversion Factor Full Price Today
X 8% 1.2 150
Assume delivery date for the contract is 5 months from now. Also, the next semiannual coupon interest payment will occur six month from today (1 months after delivery). The current repo rate is 2% per year.
Problem a) If the short seller buys the bonds today and sell it on delivery date at the locked-in futures price. Calculate the accrued interest for Bond X to be received by the short seller on delivery date. Show computation.
No coupon will be paid during holding period in this case, thus there will be no reinvestment income.
Problem b) Calculate the return for cash and carry for Bond X.
Problem c) Suppose the return for cash and carry is 1.8% per year. Should cash and carry be done with such bond today? Explain briefly why or why not.
Determine whether the following instrument is a negotiable instrument, addressing all the requirements of negotiability in your response. I, James Wyatt, promise to pay $12,000 to Buck’s Bikes in four equal installments of principal, beginning on Jan..
Portfolio B's expected return is 10 percent and its beta is 0:25. What is the risk-free rate in the model
The company's tax rate is 20% and the earnings for the period is $14.327M. Calculate the diluted EPS for Halium Company
What The total interest earned for the first four months on the defaulted contract is and The realized gross profit for the year 2019 is?
On January 2010, P & P Products began construction on a storage facility for Alpha Company. he President of P& P Products has consulted with the controller regarding estimated cost and the resulting profit. Prepare a schedule showing how much profit ..
Gerald and Bea are partners who decided to terminate, What amount must the remaining assets be sold in order for Julia to receive P197,500 after liquidation?
If a company wish to maintain a sustainable growth rate of 30% per year, is the growth rate possible. What must dividend payout ratio be to make feasible
Determine the appropriate amounts to complete the following schedule. Show computations andround to the nearest dollar and method would result in the lowest EPS for year 1? For year 2?
Lo-bed Company produced 4,000 units of product that required four standard hours per unit. The standard variable overhead cost per unit is $3.00 per hour. The actual variable factory overhead was $51,240. Determine the variable factory overhead contr..
What is the project's operating cash flow for the first year (t=1)? The financial staff of Moline Communications has identified information for the first year
The Board of Directors of Grantham Landscaping, LLC has declared a dividend of $2 per share. The total outstanding stock of Grantham Landscaping, LLC is 100 shares on 10/1/2015. The dividend was actually paid out to the stockholders on 12/1/2015. Ple..
The company also agreed to give some inventory to the lender on January 1, 20X1. Find the value of the inventory given to the lender on January 1, 20X1
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd