Questions from Financial Markets

Q: You have just purchased a three-month, $500,

You have just purchased a three-month, $500,000 negotiable CD, which will pay a 5.5 percent annual interest rate. a. If the market rate on the CD rises to 6 percent, what is its current market value?...

Q: You can purchase a T-bill that is 95 days from

You can purchase a T-bill that is 95 days from maturity for $9,965. The T-bill has a face value of $10,000. a. Calculate the T-bill’s quoted yield. b. Calculate the T-bill’s bond equivalent yield. c....

Q: Refer to Table 6–7. a. What was

Refer to Table 6–7. a. What was the closing price on the Chevron 2.954 percent coupon bonds on Monday, May 23, 2016? b. What was the S&P bond rating on Walgreens 3.800 percent co...

Q: A $1,000 face value corporate bond with a 6

A $1,000 face value corporate bond with a 6.5 percent coupon (paid semiannually) has 15 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 7.2 percent. The firm has r...

Q: A $1,000 face value corporate bond with a 6

A $1,000 face value corporate bond with a 6.75 percent coupon (paid semiannually) has 10 years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.2 percent. The firm recen...

Q: Hilton Hotels Corp. has a convertible bond issue outstanding. Each

Hilton Hotels Corp. has a convertible bond issue outstanding. Each bond, with a face value of $1,000, can be converted into common shares at a rate of 61.2983 shares of stock per $1,000 face value bon...

Q: Refer again to Table 6–1. a.

Refer again to Table 6–1. a. Verify the asked price on the 0.875 percent November 30, 2017 T-note for Monday, May 23, 2016. The asked yield on the note is 0.849 percent and the note...

Q: Gentherm Inc. has a convertible bond issue outstanding. Each bond

Gentherm Inc. has a convertible bond issue outstanding. Each bond, with a face value of $1,000, can be converted into common shares at a rate of 42.25 shares of stock per $1,000 face value bond (the c...

Q: Refer to Table 6–1. a. Verify the

Refer to Table 6–1. a. Verify the May 23, 2016, asked yield of 1.09 percent on the Treasury bond, stripped principal STRIPS maturing August 2019. Use a one-day settlement period from...

Q: National Bank currently has $500 million in transaction deposits on its

National Bank currently has $500 million in transaction deposits on its balance sheet. The current reserve requirement is 10 percent, but the Federal Reserve is decreasing this requirement to 8 percen...