Question 1.
Government Note
Rate: 2.875
Maturity: Nov10n
Bid: 99:02
Asked: 99.03
CHG: -2
ASK YLD: 3.55
A. What annual dollar coupon amount will investors receive if face value of the Treasure note is $1,000?
B. What price would you pay in dollars to purchase this Treasure note?
Question 2. T-bill
Maturity: June 16, 2009
DAYS TO MAT: 41
Bid: 2.68
Asked: 2.67
CHG: 0.01
Asked YLD: 2.72
What price would you pay in dollars to purchase this Treasure bill?
Question 3.
Company: Gen Electric
Ticker: GE
Coupon: 7.75
Maturity: 10/19/2010
Last Price: 92.50
Last Yield: 9.797
EST spread: 600
UST: 3
Est $ Vol (000's): 99,590
A. What annual dollar coupon amount will investors receive?
B. What price would you pay in dollars to purchase this bond?
C. What is the estimated yield on Treasury securities?
D. What is the current yield for this bond?
E. What is the yield to maturity on this bond?
Question 4. The Wallace Company has issued a 10-year, $1,000 bond, which pays 12% interest annually. If your required annual rate of return for an investment of this risk is 16%, what is the value of this bond to you? What is the value of the same bond if the interest is paid semi-annually?