Question

9. Coupon Mat. date Bid$ Yld% Corporat AGT Lt Air Ca AssCap Avco Bell Bell BMO7.000-Jan 28/10-106.55 BNS BNS CardTr Cdn Pa Clearn 8.800 Sep 22/25 100.46 8.75 6.750 Feb 02/04 94.00 9.09 5.400 Sep 04/01 100.01 5.38 5.750 Jun 02/03 100.25 5.63 6.250 Dec 01/03 101.59 5.63 6.500 May 09/05 102.01 5.95 6.04 5.400 Apr 01/03 100.31 5.24 6.250 Jul 16/07 101.56 5.95 5.510 Jun 21/03 100.52 5.27 850 Mar 30/09 93.93 6.83 0.000 May 15/08 88.50 8.61 5.625 Mar 24/05 99.78 5.68 5.650 Mar 17/04 99.59 5.80 Coke Colonne Colonne Colonne Colonne Colonne What is the market price of a $10008BMO Bond?Bs What is its coupon rate? If you owned $8000 in BMO bonds, what would your SA interest be? When this table was published, was this bond selling at a premium or a discount? Wh this be? y would

Answer 1

Market price of BMO bond | Par value«Price % 1,065.50-1000*106.55% 7% 0 Coupon rate Par valuexCoupon rate/2 280 1 -8000*796/2 SA Interest Bond price > Bond par value. It is trading at premium.