A Focus bond has a coupon rate of 6.00% and makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the ask price for the bond on January 30 at 100:07. What is the invoice price of the bond? The coupon period has 182 days. Note: A bond quote with semi-colon “:”, such as XXX:YY, should be read as (XXX+(YY/32))% of par value (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Invoice price $___________
You want to buy a Disney bond with three years until maturity and a coupon rate of 12.50% per year, paid semiannually. FED reports that the market interest rate for similar bonds is only 5.0% per half-year.
Find the bond’s price today and 6 months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
Current price $_______
Price after 6 months $_______
What is the total rate of return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Total rate of return_________% per six months
You buy a(n) eight-year bond that has a 5.50% current yield and a 5.50% coupon (paid annually). In one year, promised yields to maturity have risen to 6.50%. What is your holding-period return? (Do not round intermediate calculations. Round your answer to 2 decimal places.)