Calculate the value of the treasury note

Assignment Help Financial Management
Reference no: EM13721527

Assume that a $1,000,000 par value, semi annual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note.

Reference no: EM13721527

Questions Cloud

Calculate the option profit to the trader : It is April and a trader buys 100 September put options with a strike price of $20. The stock price is $17.37 and the option price is $5.21. At the expiration, the stock price becomes $18.89. Calculate the option profit to the trader.
How much would it be willing to lend the business owner : A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $3,000 per month for the next three years and then $6,000 per month for two years after that. If the bank is charging customers 10.00 percent APR,..
Investor is interested in hedging against movement in market : On July 1, an investor holds 50,000 shares of a certain stock. The market price is $29 per share. The investor is interested in hedging against movements in the market over the next month and decides to use the September Mini S&P 500 futures contract..
What is the value of retirement plan : Assume that you contribute $300 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $600 per month for another 25 years. Given a 6 percent interest rate, what is the value of your retirement plan after the 4..
Calculate the value of the treasury note : Assume that a $1,000,000 par value, semi annual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate t..
Expected return and standard deviation of a portfolio : Suppose that a fund that tracks the S&P has mean E(RM) = 16% and standard deviation ?M = 10%, and suppose that the T-bill rate Rf = 8%. What is the expected return and standard deviation of a portfolio that has 50% of its wealth in the risk-free asse..
What should your bond sell for in the secondary market : You are holding a bond with an annual coupon rate of 3.5% that matures in 11 years. Bonds recently issued of similar risk have a coupon rate of 4%. What should your bond sell for in the secondary market?
What types do you think would interact : I composed an experiment with different materials (metals and non-metals) near an electrically charged object. what types do you think would interact
Develop a strategic hrm analysis : Develop a strategic HRM analysis and roadmap for the organization you selected in Module One. Combine your previous papers for this project and synthesize the information, analysis, and programs you have collected, conducted, and developed to prod..

Reviews

Write a Review

Financial Management Questions & Answers

  What requirements would satisfy in order to qualify

ware that ACT is too small to obtain a bond rating, but in 2010 the Federal budget announced plans for a new scheme that will enable small bond issues (at least $50 million) to be listed on the ASX.

  Explain what are the percentage return on investment

One year ago, you puchased 94 shares of ABC stock for $20.9 per share. During the year, you received a dividend of $3.2 per share. Today, you sold all your shares for $25.3. What are the percentage return on your investment

  Describe how society''s interests can influence financial

Compare and contrast the potential liability of owners of proprietorships, partnerships (general partners), and corporations.

  Why did the us withdraw form the bretton woods system

What conditions will one observe floating exchange rates operating in the gold standard system and explain why the expectation of inflation in country A will lead to a higher nominal rate of interest on securities denominated in A'S currency, but h..

  Explain investor purchasing the rights to royalties

Royalty payments arrive once per year, starting one year from now. In the first year, the author expects $400,000 in royalties, followed by $300,000, then $100,000, then $10,000 in the three subsequent years.

  Compute the present value of a growing perpetuity

Calculate the present value of a growing perpetuity that makes one payment per year with the first payment, made in exactly one year from now, being $1000. Let the payments grow at an annual rate of 9.9 percent (g = .099).

  Compare the hedging alternatives for the eur receivables

Compare the hedging alternatives for the EUR receivables with a scenario under which Yankee remains unhedged and Compare the hedging alternatives for the MYR with a scenario under which Yankee remains unhedged -Do you think Yankee should hedge or r..

  Prepare financial statements in proper form for sci

Prepare financial statements in proper form for SCI, including a non-consolidated statement of financial position, a statement of comprehensive income and a statement of changes in equity.

  Explain whether anthonys orchard should invest

Explain how purchase of the apple press might affect the company's revenue goals. Based on this information, explain whether Anthony's Orchard should invest in the apple press.

  On 1 march 2013 zentique inc reported its financial results

on 1 march 2013 zentique inc. reported its financial results an extract of the 2012 balance sheet is shown belowin

  Use one paragraph to discuss the concepts and the other

please answer the following four questions. important in order to receive full credit you need to answer the questions

  1 identify the key criteria and considerations that need to

1. identify the key criteria and considerations that need to be taken into account in evaluating bfsi entry in the

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