Treasury note and bond data are representative over-the-counter quotations as of 3 p.m. Eastern time Figure 6.4 Sample Wall Street Journal U.S. Treasury note and bond prices Maturity 8/15/2021 2/28/2022 3/31/2023 4/30/2025 12/31/2026 11/15/2027 11/15/2028 Coupon 2.125 1.125 1.500 0.375 1.750 6.125 3.125 Bid 101.040 101.036 102.310 100.042 106.256 136.020 117.020 Asked 101.044 101.042 102.314 100.046 106.262 136.024 117.030 Change -0.006 -0.006 -0.004 0.012 0.024 0.710 0.708 Asked Yield 0.077 0.089 0.128 0.340 0.579 0.688 0.856
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- A graphical plot of interest rates on government debt securities (Treasury Bills) of varying maturities can have one of three shapes; increasing, decreasing, or flat. The data below show the interest rates on the government of Ghana debt securities (Treasury Bills) on two separate dates; 31st January 2019 and 4th May 2020.31 January 2019 4th May 202091 Day T’Bill 14.65% 14.12%182 Day T’Bill 15.10% 15.31%364 Day T’Bill 17.38% 16.92%Required: ii) On both dates, the yield curve appears to be upward sloping. What reasons would you assign for these upward sloping shapes of the yield curve in Ghana on these separate days? Your explanation should be practical and as detailed as possible but not exceeding 800 words.At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2022: 7.20 May 26 8.95 May 26 12.70 May 26 116.40625 116.46875 -.46875 5.42 113.53125 113.59375 -.21875 5.38 148.68750 148.87500 -.53125 5.46 The bond in the middle is callable in February 2023. What is the implied value of the call feature? Assume a par value of $1,000. (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?)At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2022: 6.60 May 26 8.35 May 26 12.10 May 26 110.37500 -.34375 110.43750 107.50000 107.56250 -.09375 136.65625 136.84375 -.40625 5.30 5.26 5.34 The bond in the middle is callable in February 2023. What is the implied value of the call feature? Assume a par value of $1,000. (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Call value
- Question 5: A Treasury Bill quotation appeared in WSJ on January 28, 2022 (Prices are for January 27, 2022) Calculate the following and show the main calculator keys in your solution. 1/26/2023 0.735 0.725 +0.095 0.741 a. Days to maturity (Keep in mind one day adjustment) b. Asked and Bid Price c. Bond Equivalent Yield (BEY) d. Effective YieldWhat is the current U.S. treasury bond rate for 3 month, 2 year, and 10 year bond terms?S Locate the Treasury bond in Figure 8.5 maturing in September 2025. Assume a par value of $10,000. Is this a premium or a discount bond? O Discount bond O Premium bond a. What is its current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is its yield to maturity? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) c. What is the bid-ask spread in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Current yield b. YTM c. Bid-ask spread % %
- K In the Global Financial Crisis box in Section 6.2, Bloomberg.com reported that the three-month Treasury bill sold for a price of $100.002556 per $100 face value. What is the yield to maturity of this bond, expressed as an EAR? www The three-month yield to maturity is %. (Round to six decimal places.)At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2019: 7.15 May 23 114.37500 114.43750 8.90 May 23 111.50000 111.56250 147.65625 147.84375 12.65 May 23 -.43750 5.41 - 18750 5.37 -.50000 5.45 The bond in the middle is callable in February 2020. What is the implied value of the call feature? Assume a par value of $1,000. (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call valueBookmarks prof es Tab Window Help http M Con AX Cer The Ora 9 Ord * Par wo Hor Tha Top Topic 6 v Submitted On: Feb 27 at 19:58 Because of its payment structure, bonds are also know as: V Fixed income O Covenants Preferred stock O Common stock O None of the above Which one of the following foreign bonds is the actual name of bonds that are traded in the U.S.? O Bulldog bond O Shogun bond O Take-your-money-and-run bond V Yankee bond OAll of the above O None of the above 3 How much are you willing to pay for a zero that matures in 10 years, has a face value of $1,000 and your required rate of return is 7%? Round to the tv W MacBook Air
- ccounting-20202 Ghadna Al Maskari Section 1 / Midterm Exam 2 Spring 2021 Which of the following is right about bonds trading Select one: O a. Bond prices are quoted as a percentage of the face value O b. No interest will be paid after bond trading O c. Newspapers and the financial press publish bond prices and trading activity daily O d. Bondholders can sell their bonds, at any time, at the current market price on national securities exchanges Next page 直。 اكتب هنا ل لبحثInstructions Present Value Tables Chart of Accounts Journal Final Questions Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell Inc. issued $60,400,000 of 10-year, 12% bonds at a market (effective) interest rate of 11%, receiving cash of $64,009,069. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1. 4. Will the bond proceeds always be…Item Prior year Current year Accounts payable 8,126.00 7,784.00 Accounts receivable 6,078.00 6,607.00 Accruals 994.00 1,452.00 Cash ??? ??? Common Stock 10,696.00 12,040.00 COGS 12,650.00 18,346.00 Current portion long-term debt 5,031.00 5,088.00 Depreciation expense 2,500 2,797.00 Interest expense 733 417 Inventories 4,240.00 4,781.00 Long-term debt 14,366.00 13,914.00 Net fixed assets 51,539.00 54,520.00 Notes payable 4,323.00 9,909.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,408.00 29,699.00 Sales 35,119 45,984.00 Taxes 2,084 2,775 What is the firm's cash flow from financing?