What was the market price

Assignment Help Financial Management

Reference no: EM132004353

Assume that you held a Treasury note that makes coupon payments on May 15 and November 15. The number of days between each coupon payment is 184. Suppose you sold the bond on June 27, 2016. If the number of days between May 15 and June 27 is 43, the bond carried a coupon rate of 3.875% and matures as of May 15, 2026 ($1,000 par value),

a) What would have been the settlement (dirty) price on June 27, 2016 if the bond was priced to yield 4.0369%?

b) What was the accrued interest?

c) What was the market price (quoted on the Wall Street Journal)?

Reference no: EM132004353

Questions Cloud

Determine as many points as possible in today yield curve : Determine as many points as possible in today's yield curve (or term structure of interest rates).

Companys interest coverage ratio is : Suppose a company has earnings before taxes of $20 billion and its income tax is 35% of its earnings before

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million.

Determined the rate of return on investment : The Bottlebrush Company has income from operations of $95,940, Use the DuPont formula to determined the rate of return on investment

What was the market price : What was the accrued interest? What was the market price (quoted on the Wall Street Journal)?

What is the total interest paid if the interest per payment : What is the total interest paid if the interest per payment period is 3.8%?

What is the amount of the principal repayment : Interest is at an effective annual rate of 6.9%. What is the amount of the principal repayment in the 6th payment?

What about a client who is borrowing : Suppose that the borrowing rate that your client faces is 10%. Assume that the S&P 500 index has an expected return of 14% and standard deviation of 25%.

Consider the remaining loan contract to be worth : If the investor values these cash flows with a nominal annual rate of 6.2% when compounded quarterly

User Account

All Pages