A bond pays an annual coupon at a coupon rate of 7.3% and has 4 years to maturity. If the market discount rate is 9.0%, what is the value of the bond (per $100 of face value)?
a.
$94.492
b.
$91.032
c.
$96.552
d.
$95.702
2.
The one-year spot rate is 2.0%, the two-year spot rate is 2.8% and the three-year spot rate is 3.6%. What is the price (per $100 of face value) of a 3-year bond paying a 8.1% annual coupon?
a.
$112.583
b.
$112.824
c.
$116.552
d.
$120.164
3.
A bond makes semi-annual interest payments at a coupon rate of 5.7% per year on 15 January and 15 July each year. What is the accrued interest (per $100 of face value) if the bond changes hands on 25 March 2020?
a.
$1.080
b.
$1.096
c.
$1.086
d.
$1.102
4.
A bond has an Annual Percentage Rate of 3.15%. If it's periodicity is 4, what is it's Equivalent Annual Rate?
a.
3.187%
b.
2.836%
c.
3.587%
d.
3.175%
5.
A bank bill with 47 days to maturity is quoted at a discount rate of 6.85%. What is the value of the security (per $100 of face value) on a discount rate basis? (Assume a 365-day year.)
a.
$99.126
b.
$100.540
c.
$100.556
d.
$99.118