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BOND PROBLEMS

ALL ANSWERS ARE INCLUDED

 

What is the dollar price of a corporate bond with a quotation of:

Quotation

Answer

86 $860
103 1/8 $1031.25
91 5/8 $916.25
111 15/16 $1119.38
106 $1060
100 $1000
55 5/8 $556.25
27 13/16 $278.13
99 $990
152 3/8 $1523.75
Given the following bond listings, find the requested information:
ATT 6 1/8   05  
A) Find the coupon yield 6.125%
B) Find the Current Yield if the bond price is 106. 5.778%
C) Find the Yield-to-Maturity if the price if 106, with 6 years to maturity. 4.9757%
D) Find the Yield-to-Call if the price is 106, it can be called at 103.5 and it can be called in 2 years. 4.6539%
StoneContainer 10 1/2   21  
A) Find the coupon yield. 10.5%
B) Find the current yield if the price is 104.5 10.047%
C) Find the Yield-to-Maturity if the the price is 104.5 with 22 years to maturity. 10.0689%
D) Find the Yield-to-Call if the price is 110, it can be called for 101 and it can be called in 7 years. 8.7339%
Exxon 8 3/4 14  
A) Find the coupon yield. 8.75%
B) Find the current yield if the price is 99. 8.838%
C) Find the Yield-to-Maturity if the price is 99 with 15 years to maturity. 8.8609%
D) Find the Yield-to-Call if the price is 101, it can be called at 103 and it can be called in 2 years. 9.5588%
Qualcomm 7 7/8 19  
A) Find the coupon yield. 7.875%
B) Find the current yield if the price is 97 3/4. 8.056%
C) Find the Yield-to-Maturity if the price is 96 5/8 with 20 years to maturity. 8.1818%
D) Find the Yield-to-Call if the price is 98, it can be called at 101 and it can be called in 6 years. 8.41708%


 

BOND VALUATION PROBLEMS

Find the price of a 10% coupon bond with 10 years to maturity if interest rates:
A) increase by 1% $940.25
B) decrease by 1% $1065.04
C) increase by 1.5% $912.20
D) decrease by 1.5% $1099.71
Find the price of an 8% coupon bond with 30 years to maturity if interest rates:
A) increase by 3/4% $920.85
B) decrease by 3/4% $1091.24
C) increase by 1 1/4% $873.83
D) decrease by 1 1/4% $1159.91

 
Find the price of a $1000, 8% zero coupon bond with 10 years to maturity. (Use semi-annual compounding) [$456.3869]
Find the price of A $1000, 7 1/2% zero coupon bond with 30 years to maturity. (Use continuous compounding)[$105.399]
Find the value of a $10,000, 6 1/8% Treasury Bill with one year to maturity. (Use continuous compounding)[$9405.88]

 
FIND THE DOLLAR VALUE GIVEN THE FOLLOWING (TREASURY) BOND QUOTATIONS:
18:31 $189.6875
26:26 $268.125
42:01 $420.3125
55:05 $551.5625
78:08 $782.50
81:15 $814.6875
93:03 $930.9375
99:09 $992.8125
102:02 $1020.625
111:11 $1113.4375
135:25 $1357.8125
149:19 $1495.9375

 
FIND THE DOLLAR VALUE USING THE FOLLOWING T-BILL QUOTATIONS:  [Remember that the quotations in the Wall Street Journal are DISCOUNT PERCENTAGES from the face value.]
5.55 $9445
9.48 $9052
3.33 $9667
8.91 $9109
7.77 $9223
10.01 $8999
1.90 $9810
15.15 $8485