question archive 1a) A bond portfolio has a current market value of $230,000,000
1a) A bond portfolio has a current market value of $230,000,000
Subject:FinancePrice: Bought3
1a)
A bond portfolio has a current market value of $230,000,000. Bonds in the portfolio are expected to produce semi-annual cash flows of $17,000,000 for the next 10 years. What is the annual bond portfolio equivalent yield?
1b)
A 7.75% fixed coupon bond maturing on April 21, 2010 is priced at $995 on December 20, 2001. The bond is callable on December 20, 2005 for $1,150. What is the bond's Current Yield on December 20, 2001?
1c)
A 7.75% fixed coupon bond maturing on April 21, 2010 is priced at $995 on December 20, 2001. The bond is callable on December 20, 2005 for $1,150. What is the annual bond equivalent yield to call on December 20, 2001?
1d)
A 5.65% fixed coupon bond is yielding 2.27%. The current date is February 14, 2021 and the bond matures on June 28, 2028. What is the present value (price) of the bond's coupons and reinvestment of the coupons (exclude the par value)?
