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Zorluk: Çok zorDebt Securities and Bond Structure

An investor holds a portfolio of 25 corporate bonds, each having a par value of $1,000. The bonds carry a nominal coupon rate of 6.4% per annum with semi-annual coupon payments. If the investor purchased all 25 bonds at a market price quote of 98.50, what is the total dollar amount of semi-annual coupon interest the investor will receive in a single semi-annual payment across the entire portfolio?

Cevap: 800 dollars

Cevap

The total semi-annual coupon payment received by the investor across all 25 bonds is $800.
Coupon interest is calculated by multiplying the nominal coupon rate by the par value of the bond (1,000∗6.41,000 * 6.4% = 64 per year). Because bonds pay semi-annually, each bond pays half of its annual coupon every six months (64/2=64 / 2 = 32 per bond). For 25 bonds, the total semi-annual interest received is 25 * 32=32 = 800. The market price (98.50 or $985 per bond) does not impact the dollar amount of coupon interest paid by the issuer.

Adım Adım Çözüm

1
Determine the annual coupon payment per bond using the par value and nominal coupon rate.
Each bond pays 1,000∗0.064=1,000 * 0.064 = 64.00 in coupon interest per year.
The nominal coupon rate is calculated based on the bond's par value ($1,000), regardless of its secondary market purchase price.
2
Divide the annual coupon payment by 2 to determine the semi-annual payment per bond.
Each bond pays 64.00/2=64.00 / 2 = 32.00 every six months.
Bonds typically pay interest semi-annually (twice per year).
3
Multiply the single semi-annual payment amount per bond by the number of bonds in the portfolio.
32.00∗25=32.00 * 25 = 800.00 total semi-annual interest payment.
The total cash flow received every six months is the sum of payments for all 25 bonds.

Anahtar Kavram

Calculation of semi-annual bond interest income based on par value and coupon rate
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Konular

Debt Securities and Bond Structure

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