Question

In: Finance

Nina's Construction Bonds carry a 4% coupon, mature on 4/1/2030 and pay coupons on 10/1 and...

Nina's Construction Bonds carry a 4% coupon, mature on 4/1/2030 and pay coupons on 10/1 and 4/1 each year using a 30/360 accrual convention.

Given this information, what is the accrued interest if you owned $30,000 par value as of the end of the day
March 15th, 2024?

Solutions

Expert Solution

accrued interest = par value * coupon rate * (number of days since last coupon payment / 360)

As per the 30/360 accrual convention, each month has 30 days.

Last coupon payment was on 10/1.

Therefore, number of days since last coupon payment = 20 + 30 + 30 + 30 + 30 + 15 = 155 days

accrued interest = $30,000 * 4% * (155 / 360)

accrued interest = $516.67

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Nina's Construction Bonds carry a 4% coupon, mature on 4/1/2030 and pay coupons on 10/1 and...
Nina's Construction Bonds carry a 4% coupon, mature on 4/1/2030 and pay coupons on 10/1 and 4/1 each year using a 30/360 accrual convention. Given this information, what is the accrued interest if you owned $30,000 par value as of the end of the day March 15th, 2024?
Goody's bonds pay a 8 percent annual coupon rate. The bonds mature in 13 years. The...
Goody's bonds pay a 8 percent annual coupon rate. The bonds mature in 13 years. The bond pays interest semiannually. What is the price per bond if the face value is $1,000 and the yield to maturity is 10 percent?   (Round your answer to two decimal places. Do not enter dollar signs.)
Hope bonds have a coupon rate of 7% and mature in 7 years. Assuming semi-annual coupons...
Hope bonds have a coupon rate of 7% and mature in 7 years. Assuming semi-annual coupons with face value of $100, what is the value of this bond? Similar bonds yield 6%. a. The value of this bond is $39.54. b. The value of this bond is $106.58. c. The value of this bond is $105.65. d. The value of this bond is $94.54. Dewyco has preference stock trading at $50 per share. The next preference dividend of $4 is...
The bonds for Gladstone Limited will mature in 10 years, with a face value of $1000, and semi-annual coupons.
Question 1The bonds for Gladstone Limited will mature in 10 years, with a face value of $1000, and semi-annual coupons. The coupon rate on these bonds is 7.5% per year.Question 1(a)The risk associated with Gladstone Limited bonds has increased dramatically, as investors now want a 12% return to hold the bonds. At what price should the bonds trade today?                            Question 1(b)Today, Gladstone Limited admitted to having some management problems with seven (7) years to go before maturity. The price...
a).The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature...
a).The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in 7 years. Your required rate of return for such an investment is 10% annually. i) How much should you pay for a RM1,000 ARA Corporation bond? ii) If you are given RM90,000, how many units of bond can you purchase? iii) What is the yearly interest income for this bond if I purchase it with RM90,000? iv) You plan to reinvest the coupon...
ABC Co. issued 1 million 6 percent annual coupon bonds that mature in 10 years. The...
ABC Co. issued 1 million 6 percent annual coupon bonds that mature in 10 years. The face value is $1,000 per bond. What are the expected cash flows from one of these bonds?
ABC Bonds are currently rated AA. The bonds mature in 10 years, make annual coupon payments,...
ABC Bonds are currently rated AA. The bonds mature in 10 years, make annual coupon payments, and have a coupon rate of 5.2%. You are convinced that the bonds will be downgraded to BBB 1 year from now. If AA bonds have a YTM of 7% and BBB bonds have a YTM of 8.3%, what is your rate of return on a 1-year investment in ABC Bonds if they are downgraded at the end of the year? Enter your answer...
Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature...
Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 10%. What is the price of the bonds? Round your answer to the nearest cent.
Xerox issued bonds that pay $57.50 in interest each year and will mature in 10 years....
Xerox issued bonds that pay $57.50 in interest each year and will mature in 10 years. You are thinking about purchasing the bonds. You have decided that you would need to receive a return of 7 percent on your investment. What is the value of the bond to you, first assuming that the interest is paid annually and then semiannually? a. If the interest is paid semiannually, the value of the bond is _ ?
Ramstucky Corp bonds just paid their annual coupon of 4%. They mature in 6 years. The...
Ramstucky Corp bonds just paid their annual coupon of 4%. They mature in 6 years. The required rate of return on the bonds is 5%. The call price of the bonds is 102, but they are not callable until after the second coupon payment. What is the price of the bonds as a percentage of par? What is the current yield? What is the yield to first call? If, immediately after the second coupon payment, the yield to maturity is...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT