Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 24, Problem 2P
A Treasury bond futures contract has a settlement price of 89’08. What is the implied annual yield?
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Suppose the December CBOT Treasury bond futures contract has a quoted price of 80-07. What is the implied annual interest rate inherent in the futures contract? Assume this is a a 20 year bond with semi-annual interest payments. The face value of the bond is $1000, and the semi-annual coupon payments are $30.(a) 6.86%(b) 7.22%(c) 7.60%(d) 8.00%(e) 8.40%
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- The June Treasury bond futures contract has a quoted price of 95'12. What is the implied annual interest rate?arrow_forwardThe June CBOT Treasury bond futures contract has a quoted price of 95'7. If annual interest rates go up by 1.75 percentage point, what is the gain or loss on the futures contract? Round to the nearest whole dollar.arrow_forwardSuppose a 10-year, $1000 bond with a coupon rate of 8.4% and semiannual coupons is trading for $1035.64. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price?arrow_forward
- Suppose a 10-year, $1,000 bond with a 9% coupon rate and semiannual coupons is trading for a price of $955.79. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be?arrow_forwardSuppose a ten-year, $1,000 bond with an 8.0% coupon rate and semiannual coupons is trading for $1,034.74. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?arrow_forwardSuppose a 10 -year,$1,000bond with a(n)9%coupon rate and semiannual coupons is trading for a price of$946.34. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to9%APR, what will the bond's price be?arrow_forward
- Suppose a 10-year, $1,000 bond with a 10% coupon rate and semiannual coupons is trading for a price of $957.81. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 8% APR, what will the bond's price be? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The YTM is _____________(Round to two decimal places.) b. If the bond's yield to maturity changes to 8% APR, what will the bond's price be? The price is $______________ (Round to the nearest cent.)arrow_forwardWhat is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100’160? If interest rates increased by 1%, what wouldbe the contract’s new value?arrow_forwardSuppose a ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for $1,035.77. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.8% APR, what will be the bond's price?arrow_forward
- Consider a zero-coupon bond with a maturity of 13 years and a face value of $1 Million. If the current market price of the bond is $751,226, and interest accrues semi-annually, what is the nominal yield-to-maturity of the bond?arrow_forwardA bond has a 6.5% yield to maturity and coupons paid semiannually. What is the bond's effective annual yield (EAY)?arrow_forwardSuppose a ten-year, $1,000 bond with a 8.9% coupon rate and semiannual coupons is trading for$1,035.32. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price? The bond's yield to maturity is ______%. (Round to two decimal places.)arrow_forward
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