subject
Business, 12.03.2020 06:10 kayranicole1

A 2.25% coupon US Treasury, bond maturing on 15 Feb 2021, has a YTM of 1.55%. You wish to buy this bond to with a settlement date of 14 Feb 2020. What would be the price of is priced for settlementon 18 June 2015 at a yield (YTM) of 6%. (Hint: based on an actual/actual day-count convention there are 184 days between the last coupon payment date and the next coupon payment date, and 183 days between the last coupon date and the settlement date.) a. What is the full price of this bond? b. What is the accrued interest (AI) owed to the seller of the bond on the settlement date? C. What is the clean price of the bond on settlement date?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 05:00
You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?
Answers: 2
question
Business, 22.06.2019 13:20
Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th withdraw?
Answers: 3
question
Business, 22.06.2019 17:30
After the embarrassing sign incident at the restaurant you own, you decide to offer employees a six-week fundamental writing skills workshop. a local business communication instructor, who has experience teaching writing skills at treleaven community college, will facilitate the sessions. to encourage employees to attend these optional sessions, write an email that explains why you’re offering the workshop and why employees should participate.
Answers: 2
question
Business, 22.06.2019 18:00
Match the different financial task to their corresponding financial life cycle phases
Answers: 3
You know the right answer?
A 2.25% coupon US Treasury, bond maturing on 15 Feb 2021, has a YTM of 1.55%. You wish to buy this b...
Questions
question
History, 28.05.2021 19:50
question
Mathematics, 28.05.2021 19:50
question
Biology, 28.05.2021 19:50
question
Mathematics, 28.05.2021 19:50
Questions on the website: 13722363