Calculate the conversion factor for a bond

Assignment Help Civil Engineering
Reference no: EM131404139

It is June 25, 2001. The futures price for the June 2001 CBOT bond futures contract is 118-23.

a. Calculate the conversion factor for a bond maturing on January 1, 2017, paying a coupon of 10%.

b. Calculate the conversion factor for a bond maturing on October 1, 2022, paying a coupon of 7%.

c. Suppose that the quoted prices of the bonds in (a) and (b) are 169.00 and 136.00, respectively. Which bond is cheaper to deliver?

d. Assuming that the cheapest to deliver bond is actually delivered, what is the cash price received for the bond?

Reference no: EM131404139

Questions Cloud

Describe probability distribution for number in the sample : For a randomly selected group of 10 children, use the appropriate statistical table to describe the probability distribution for the number in the sample who are covered by life insurance.
Discuss the importance of providing supplemental activities : Discuss the importance of providing supplemental activities to support the learning at home
Describe the probability distribution for the number : For a random selection of 3 tax returns, describe the probability distribution for the number in the sample whose returns were prepared by H&R Block.
Probability that he will meet his quota by tomorrow morning : If he has a 30% chance of success with each customer, what is the probability that he will meet his quota by tomorrow morning?
Calculate the conversion factor for a bond : Suppose that the quoted prices of the bonds in (a) and (b) are 169.00 and 136.00, respectively. Which bond is cheaper to deliver?
Discuss the phonics and phonemic awareness : Cite three examples of children's literature that support phonics and phonemic awareness. Explain how you would use them to support phonics and phonemic awareness
Probability that there will be no more than one crash : Assuming this rate continues, what is the probability that there will be no more than one crash in the next 50,000 flying hours?
Design a swap that will net a bank : Design a swap that will net a bank, acting as intermediary, 50 basis points per annum. Make the swap equally attractive to the two companies and ensure that all foreign exchange risk is assumed by the bank.
What is the probability that there will be enough room : About to embark on a typical half-day trip, he has 6 passengers on board. What is the probability that there will be enough room below deck to accommodate those who become ill?

Reviews

Write a Review

Civil Engineering Questions & Answers

  Calculate the coefficient of consolidation

For the soil and foundation conditions in fig. 1, determine the time required to reach 75% consolidation in the clay given the consolidation test results and determine the coefficient of consolidation

  Determine the rate of heat exchange between the human

A human with a surface area of 2 m^2 and a surface temperature of 27 degrees celcius radiates into a large room (which acts as a black body),

  Calculate the stress at failure of a concrete test cylinder

Calculate the stress at failure of a concrete test cylinder with a measured diameter of 152.4 mm and a recorded load of 371,426N. Units of ksi.

  How to determine the friction force on the floor

The crate has a wieght of W = 350lb., and the coefficients of static and kinetic friction are us = 0.3 and uk = 0, respectively. Determine the friction force on the floor. Theta = 45 degrees and P = 100lb.

  What would be the absolute pressure of carbon dioxiode

What would be the absolute pressure, P in kPa, of carbon dioxiode at 20 degrees celcious if the specific weight of carbon dioxide at 20 degrees celcious is 18 N/m^3 and the gas constant, R =1.889x10^2 J/kg*K.

  Determine the power that must be supplied to the pump at

Crude oil flows through a level section of the Alaskan pipeline at a rate of 1.6 million barrels per day (1 barrels=42 US gallons) the pipe inside diameter is 48 inch and its roughness is equivalent to galvanized iron.

  Calculate the alkalinity due to hco3- and co3-2

A water sample has phenolphthalein alkalinity (PPA) of 30 mg/L as CaCO3 and total alkalinity (TA) of 84 mg/L as CaCO3. If OH alkalinity is 5.3 mg/L as CaCO3, Calculate the alkalinity due to HCO3- and CO3-2.

  Which window orientation maximizes wintertime heat

Which window orientation maximizes wintertime heat and minimizes summertime heat? Is there an undesirable orientation that maximizes summertime heat and minimizes wintertime heat?

  Compute the effective vertical stress when the tank is empty

Essentials of Soil Mechanics and Foundations 7th Edition David McCarthy An oil storage tank 50 ft in diameter imposes a maximum loading of 2500 psf onto the ground surface where the tank is supported.

  What volume of ash would be collected by the pollution

If the density of the ash is 650 kg/m^3, what volume of ash would be collected by the pollution control measures at this facility each month? Assume 1 month = 30 days.

  Change in it internal energy

A gas is compressed at a constant pressure of 0.800 atm from 9.00L tp 2.00L. in the process, 400J of energy leave the gas by heat. (a) What is the work done on the gas? (b) What is the change in it internal energy?

  Determine what should the ratio of shaft diameters be

Torque is transferred through two shafts by means of gears. If the diameters of gears B and C are in the ratio 1:2, what should the ratio of shaft diameters be so that both shafts have the same shear stress

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd