1. What is the estimated volume sold of the Quick-Fresh Car Wash (QFCW) bond?COMPANY (TICKER)Quick-Fresh Car Wash(QFCW)2,614,0004,885,000O150, 365,000O99,375,000COUPON4.885MATURITYFebruary 20, 2012LASTPRICE99.375LASTYIELD2.614EST VOL(0005)150, 365

A bond quote shows the coupon rate of the bond, the date of maturity, the last price traded, the…

Answered: 1. What is the estimated volume sold of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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please question D and E is required. Bond Consider a bank with the following balance sheet (M means million): Assets Value Duration of the Asset Convexity of the Asset 5yr bond bought at a yield of 3.4% (lending money) $550M 4.562 12.026 12yr bond bought at a yield of 4% (lending money) $800M 9.453 53.565 Liabilities Value Duration of the Liability Convexity of the Liability 2yr bond sold at a yield of 2.4% (borrowing money) $300M 1.941 2.384 4yr bond sold at a yield of 2.8% (borrowing money) $500M 3.759 8.206 a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) b) Calculate the duration and convexity of the both asset and liability sides; c) If the interest rates go up by 1%, using the duration and convexity rule to determine the net worth of the bank and the equity to asset ratio; d) In c)’s…
If $457,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select the correct answer. A. $420,440 B. $457,000 C. $429,580 D. $493,560
If the bonds payable account has a balance of $900,000 and the discount on bonds payable account has a balance of $72,000, what is the carrying amount of bonds? A. $828,000 B. $900,000 C. $972,000 D. $580,000
Please question A B and C is required Bond Consider a bank with the following balance sheet (M means million): Assets Value Duration of the Asset Convexity of the Asset 5yr bond bought at a yield of 3.4% (lending money) $550M 4.562 12.026 12yr bond bought at a yield of 4% (lending money) $800M 9.453 53.565 Liabilities Value Duration of the Liability Convexity of the Liability 2yr bond sold at a yield of 2.4% (borrowing money) $300M 1.941 2.384 4yr bond sold at a yield of 2.8% (borrowing money) $500M 3.759 8.206 a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) b) Calculate the duration and convexity of the both asset and liability sides; c) If the interest rates go up by 1%, using the duration and convexity rule to determine the net worth of the bank and the equity to asset ratio;
A$1000,5%bondwithannualcouponswillberedeemedattheendof9years.Findthepricetoyield6%. a. $1,074.35 b. $974.00 c. $1,004.95 d. $931.98
Stones Energy Corporation's 7.5% bonds due in 2022 were reported as selling for 82.95. Were the bonds selling at a premium or at a discount? Why is Stone Energy Corporation able to sell its bonds at this price?
Stone Energy Corporation’s 7.5% bonds due in 2022 were reported as selling for 82.95. Were the bonds selling at a premium or at a discount? Why is Stone Energy Corporation able to sell its bonds at this price?
Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $800. Required: 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30.$fill in the blank 23f1fdf81fe3f91_1 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10.$fill in the blank 23f1fdf81fe3f91_2 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par.$fill in the blank 23f1fdf81fe3f91_3 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par.$fill in the blank 23f1fdf81fe3f91_4 5. Assume that the bonds are sold for $625 each. Prepare the entry to recognize the sale of the 750 bonds. Cash fill in the blank 2552a6f29fa5030_2 fill in the blank 2552a6f29fa5030_3 Discount on Bonds Payable fill in the blank 2552a6f29fa5030_5 fill in the blank 2552a6f29fa5030_6 Bonds Payable fill in the blank 2552a6f29fa5030_8 fill…
Problem5: OnJanuary1,2021,BLITZENCompanyissued10%bondsdatedJanuary1,2021withafaceamountof ₱8,000,000.ThebondsmatureonDecember31,2026.Forbondsofsimilarriskandmaturity,the marketyieldis14%.Interestispaidsemi-annuallyonJune30andDecember31.(Useatmost,4decimal placesforPVfactors) Preparethejournalentriesfor2021 Computeorprovidetheanswersforthefollowing: DeterminethepriceofthebondsonJanuary1,2021. Howmuchistheinterestexpensefortheyearended,December31,2021? Howmuchistheinterestexpensefortheyearended,December31,2022? WhatisthecarryingamountofthebondsonDecember31,2022?
Can you pleas provide clear answers for B, convexity and duration.Thank you for your time. Question 3. Bond Consider a bank with the following balance sheet (M means million): Assets Value Duration of the Asset Convexity of the Asset5yr bond bought at a yield of 3.4% (lending money) $550M 4.56212.02612yr bond bought at a yield of 4% (lending money) $800M 9.45353.565 Liabilities Value Duration of the Liability Convexity of the Liability2yr bond sold at a yield of 2.4% (borrowing money) $300M 1.941 2.3844yr bond sold at a yield of 2.8% (borrowing money) $500M 3.759 8.206 a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) b) Calculate the duration and convexity of the both asset and liability sides;
. The following bond was quoted in The Wall Street Journal:Bonds: Curr.yld.: Vol: Close: Net chg:CVS 7.3 10 80.875 + 1.2Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more did thefive bonds cost today? (Round your answer to the nearest cent.)Increased cost $
If $949,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is a.$1,024,920 b.$711,750 c.$949,000 d.$975,098

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1. What is the estimated volume sold of the Quick Fresh Car Wash (OFCW) bond? COMPANY (TICKER) Quick-Fresh Car Wash (OFCW) 2,614,000 O4,885,000 150,365,000 O99,375,000 COUPON 4.885 MATURITY February 20, 2012 LAST PRICE 99.375 LAST YIELD 2.614 EST VOL (0005) 150,365