Author Question: A U.S. Government T-Bond with a 15-year maturity has a coupon rate of 5%. The bond has a face value ... (Read 90 times)

abern · **on:** Apr 25, 2021

Question 1

A recent coupon bond issued by Ucantaffordit Financing Inc. has a face value of $1,000, matures in five years and pays semi-annual coupons at LIBOR plus 100 basis points. This is an example of a(n) ________ bond.
◦ adjustable
◦ floating rate
◦ flexible
◦ interest-only

Question 2

A U.S. Government T-Bond with a 15-year maturity has a coupon rate of 5%. The bond has a face value of $1,000 and pays its coupons semi-annually. The next coupon is due in six months. The bond trades for $949.38 to yield 5.5%. What are the cash flows from the bond?
◦ $750.00
◦ $800.62
◦ $1,000.00
◦ $1,750.00
◦ $2,699.38

yasmin · **Reply #1 on:** Apr 25, 2021

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