Questions from Business Mathematics


Q: A $1000, 6% coupon, 25-year Government

A $1000, 6% coupon, 25-year Government of Canada bond was issued on June 1, 2015. At what flat price did it sell on April 27, 2019 if the market’s required return was 4.6% compounded semiannually?

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Q: A $1000, 10% coupon bond issued by Ontario Hydro

A $1000, 10% coupon bond issued by Ontario Hydro on July 15, 2011 matures on July 15, 2036. What was its flat price on June 1, 2020 when the required yield to maturity was 5.5% compounded semiannually...

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Q: A $1000, 6.75% coupon, 25-

A $1000, 6.75% coupon, 25-year Government of Canada bond was issued on March 15, 1971. At what flat price did it trade on July 4, 1981, when the market’s required return was 17% compounded semiannuall...

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Q: A $1000, 5.2% coupon, 20-

A $1000, 5.2% coupon, 20-year Province of Ontario bond was issued on March 15, 2019. Calculate its flat price on March 15, April 15, May 15, June 15, July 15, August 15, and September 15, 2020, if the...

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Q: A $1000, 7% coupon, 15-year Province

A $1000, 7% coupon, 15-year Province of Saskatchewan bond was issued on May 20, 2017. Calculate its (flat) price on May 20, June 20, July 20, August 20, September 20, October 20, and November 20, 2019...

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Q: Evaluate values of the variables. Calculate the result accurate to the

Evaluate values of the variables. Calculate the result accurate to the nearest cent. S 1 + r t for S = $2500, r = 0.085, t = 123 365

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Q: A $1000 face value, 7.6% coupon bond

A $1000 face value, 7.6% coupon bond pays interest on May 15 and November 15. If its flat price on August 1 was $1065.50, at what price (expressed as a percentage of face value) would the issue have b...

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Q: A $5000 bond was sold for $4860 (flat)

A $5000 bond was sold for $4860 (flat) on September 17. If the bond pays $200 interest on June 1 and December 1 of each year, what price (expressed as a percentage of face value) would have been quote...

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Q: If a broker quotes a price of 108.50 for a

If a broker quotes a price of 108.50 for a bond on October 23, what amount will a client pay per $1000 face value? The 7.2% coupon rate is payable on March 1 and September 1 of each year. The relevant...

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Q: Calculate the quoted price on April 15, 2006 of the bond

Calculate the quoted price on April 15, 2006 of the bond described in Problem 3. Data from Problem 3: Calculate the purchase price (flat) of $1000 face value bonds. Issue date = Jan 1, 2006 Maturity...

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