5)Considering the following: 8 year, semi-annual bond, 0.095 YTM, 997 current price. Par is 1000 What should the coupon rate be for this bond? 0.0893 0.1072 0.0995 0.0945 0.1032
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8 year, semi-annual bond, 0.095 YTM, 997 current price. Par is 1000
What should the coupon rate be for this bond?
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- 2. Consider a 15-year semiannual floating rate bond with coupon rate determined with the following formula: Coupon rate = reference rate + 65bps What’s the discount margin of the bond if the bond price is 99.5730 and current reference rate is 9%?Suppose that a bond has a face value of 50,000 and it's maturity date is 5 years from now. Find the present value of this bond, assuming that the annual market rate is 4%. * O 48,834.83 45,537.84 O 39,176.31 O 32,458.85 O 42,823.584) A coupon bond pays this amount every 6 months; $ 30.00 bgs for the number of payments/year; 2 The bond also pays at maturity the par (face) value; $ 1,000.00 Number of years until maturity 15 The required return of holders of this bond is; 8.00% bgs a) What is the PV of the CFs, or what would be the fair price to purchase this bond? b) If the required return of holders of this bond is; 6.00% bgs What is the PV of the CFs, or what would be the fair price to purchase this bond? c) If the required return of holders of this bond is; 4.00% What is the PV of the CFs, or what would be the fair price to purchase this bond? to purchase this bond? bgs d) If the previous bond sells for; $ (976.00) What must be the yield to maturity for this bond (aka IRR) ? (to…
- Consider a 25-year bond with a face value of $1,000 that has a coupon rate of 5.8%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ *** (Round to the nearest cent.)Consider a bond with a face value of $1,000 that sells for an initial price of $700. It will pay no coupons for the first nine years and will then pay 11% coupons for the remaining 29 years. Choose an equation showing the relationship between the price of the bond, the coupon (in dollars), and the yield to maturity. O A. B. O C. O D. 700 = 700 = 700 = 700 = 110 110 9 (1+i)⁹ (1+i)⁹+1 + 110 + i) ⁹ + 1 (1 + 1,000 (1+i) 29-9 1,000 (1 + i) 9 +29 + +...+ 110 (1+i) 9+2 + 110 (1 + i)9+29-1 110 + (1 + i) ⁹ + 110 (1+i)9 +29 9+29-1 + 110 (1 + i)9 +29 + 1,000 (1+i) 9+29Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Price $983.78 865.89 797.92 732.00 660.24 Required: a. Calculate the forward rate of interest for each year. b. How could you construct a 1-year forward loan beginning in year 3? c. How could you construct a 1-year forward loan beginning in year 4?
- 1. Consider an annual 4 year coupon bond paying a coupon rate of 5%. If it is 1000 par and the YTM= .04 (use atleast5 decimal places for this question) A. What is the price of this bond? B) What is the bond modified duration? C) Use the bond’s modified duration to estimate the price change of the bond if YTM changes to .045. (So positive price change of $40.2 would be written 40.2 and a negative price change of $40.2 would be writen as-40.2) Please explain without using excelConsider an annual 2 year coupon bond paying a coupon rate of 7%. If it is 1000 par and the YTM= .06 A) What is the price of this bond? Answer: 1018.33 B) What is thebond’s modified duration? Answer: 1.82 C) Use the bond’s modified duration to estimate the pricechange of the bond if YTM changes to .055. (So positiveprice change of $40.2 would be written 40.2 and a negativeprice change of $40.2 would be writen as-40. Answer: 9.29 D) Price at 10 yearsemi-annual coupon bond with a 5%coupon rate and a YTM of 8%. If par is 1000. Answer: 796.14 Note: Please explain without using excel.ThanksConsider the following par bond (ie coupon rate=yield):Year: 10 and 20 years . Yld 1.50% and 2.0% Q1b. how much should the 20y bond be priced 1 year later (as a 19 year bond)?
- Consider a 26-year bond with 6 percent annual coupon payments. The market rate (YTM) is 8.6 percent for this bond. The current yield of the bond is__________ percent. Answer it in percentage without the % sign, and round it to two decimal place, e.g., 5.69. Your Answer: Answer ChundYou purchased a coupon-bearing bond at $1000 and resold it at $1200 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? OA 0.060 O B. 0.050 OC. 0.200 O D. 0.2625. Consider a bond with a settlement date of February 22, 2022, and a maturity date of March 15, 2030. The coupon rate is 5.5%. (LO 10-1) a. If the yield to maturity of the bond is 5.34% (bond equivalent yield, semiannual compounding), what is the list price of the bond on the settlement date? b. What is the accrued interest on the bond? c. What is the invoice price of the bond?