Message from @BryceB-ND

Discord ID: 406167467858067466


2018-01-24 21:03:58 UTC  

He's jewish too I'm weak

2018-01-25 19:13:25 UTC  

@here Anyone know anything about bond valuation ?

2018-01-25 19:13:56 UTC  

@BryceB-ND Yes! What's the question?

2018-01-25 19:14:04 UTC  

Also yes

2018-01-25 19:14:06 UTC  

If you have a floater and an inverse floater derived from your collateral, is the coupon rate of the collateral the weighted average of the floater and inverse floater?

2018-01-25 19:14:47 UTC  

https://cdn.discordapp.com/attachments/387060078433271808/406165023413764096/unknown.png

2018-01-25 19:15:08 UTC  

I got 8%

2018-01-25 19:15:20 UTC  

I used this "

https://cdn.discordapp.com/attachments/387060078433271808/406165159296499715/unknown.png

2018-01-25 19:15:26 UTC  

I used this as my example to go off of.

2018-01-25 19:17:12 UTC  

I also want to check my work on computing the dirty and clean price as well as accrued interest of another example in case you both have an idea on that as well

2018-01-25 19:17:20 UTC  

This is a similar example.

2018-01-25 19:17:33 UTC  

Lemme find my calculator

2018-01-25 19:17:37 UTC  

^uploading

2018-01-25 19:17:39 UTC  

ty

2018-01-25 19:21:59 UTC  

Pretty sure 8 is correct

2018-01-25 19:22:48 UTC  

Would just be the average

2018-01-25 19:22:55 UTC  

Ok good that's what i had thought

2018-01-25 19:23:18 UTC  

What's the other question?

2018-01-25 19:23:30 UTC  

3. Assume the original maturity a bond with face value $1000 is 8 years. The annualized
yield to maturity for the bond is 6.25% and its annual coupon rate is 7.5% being
2
semiannually paid. The bond was issued on 8/1/2015, and bought on 12/1/2017.
Compute the following:
(1) dirty price, (2) clean price and (3) accrued interest. (7 points)

2018-01-25 19:24:06 UTC  

I calculated 1058.76 for dirty price, 1046.26 for clean and 12.5 for accrued interest.

2018-01-25 19:24:30 UTC  

I understand this problem, what I don't get is how to calculate the accrued interest because I don't know how to determine the intervals of the semi annual interest payments.

2018-01-25 19:26:26 UTC  

Hmm. Send pic of question

2018-01-25 19:27:03 UTC  

https://cdn.discordapp.com/attachments/387060078433271808/406168109834174475/unknown.png

2018-01-25 19:28:39 UTC  

2 min

2018-01-25 19:31:40 UTC  

Ok so the equation for AI might be

cash flow (1-(days/total days in coupon period))
Idk that helps

2018-01-25 19:33:28 UTC  

Yeah I know that much, thank you, I'm having trouble just discerning the days since the last coupon payment from the dates given is all.

2018-01-25 19:36:15 UTC  

Bonds usually pay interest on the first day of January and July

2018-01-25 19:36:31 UTC  

That's usually what semiannual implies.

2018-01-25 19:36:37 UTC  

Ok.

2018-01-25 19:36:38 UTC  

Ty

2018-01-25 20:26:45 UTC  

@SamanthaM awesome, I think this is the first homework help of the new academic channels!

2018-01-29 00:29:26 UTC  

Would anyone @here be willing to read my rought draft for a paper I'm writing on this video:

2018-01-29 00:31:37 UTC  

Also any specific sources to help back up my statements would be appreciated

2018-01-29 00:37:17 UTC  

@StrawberryArmada I suggest putting the paper into a google doc, and creating a share link where anyone with the link can comment on (but not edit) the document

2018-01-29 00:39:17 UTC  

Good idea

2018-01-29 00:46:18 UTC  

This should work

2018-01-29 00:46:20 UTC  

Halp pls

2018-01-29 00:46:28 UTC  

:)

2018-01-29 01:22:09 UTC  

@StrawberryArmada Alright dude I looked over it, left my comments and some sources I found. Hopefully someone else can give it a once over as well @here