BU340 managerial finance I assignment 8

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Financial Planning Exercise 6Calculating and interpreting current yield and yield to maturity Find the current yield of a 10%, 25-year bond that's currently priced in the market at $1,250. Now, use a financial calculator to find the yield to maturity on this bond (use annual compounding). What's the current yield and yield to maturity on this bond if it trades at $1,000? If it's priced at $750? The par value of the bond is $1,000. Round your answers to two decimal places. Do not round intermediate calculations. Quote Current Yield Yield to Maturity 10%, 25 yr., $1,250  %  % 10%, 25 yr., $1,000  %  % 10%, 25 yr., $750  %  %

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Chapter 12Financial Planning Exercise 6Calculating and interpreting current yield and yield to maturity Find the current yield of a 10%, 25-year bond that's currently priced in the market at $1,250. Now, use a financial calculator to find the yield to maturity on this bond (use annual compounding). What's the current yield and yield to maturity on this bond if it trades at $1,000? If it's priced at $750? The par value of the bond is $1,000. Round your answers to two decimal places. Do not round intermediate calculations. Quote Current Yield Yield to Maturity 10%, 25 yr., $1,250  %  % 10%, 25 yr., $1,000  %  % 10%, 25 yr., $750  %  %

Question a The following data relate to a corporate bond which pays coupons semi-annually:Settlement date 01 March 2020Maturity date 31 December 2040Coupon rate 12%Yield to maturity 10%Face value $1,000Percentage of face value paid back to the investor on maturity 100%Using the above data, calculatei. The flat price of the bondii. Accrued interestiii. Invoice price of the bond Full explain this question and text typing work only     We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line. .

Questiona Question. OQuestion 5 Show Instructions Question 6 D Question 1 OQuestion 7 Question 8 10 pts Time Elapsed: Hide A bond portfolio manager has a $25 million market value bond portfollo with a six-year duration. The manager believes interest rates may increase 50 basis points, Which of the following could be used to help limit his Attempt due: Jun 25 at 11:59pm 2 Minutes, 13 Seconds risk? 24/7 Proctoring Support 1. 1, Sell the bonds forward. 2. II. Buy bond futures contracts., 3. IlII, Buy call options on the bonds, Calculator Live Chat 4, IV. Buy put options on the bonds. O Phone O lonly O Il only O l and III only O l and IV only | Приложенио ар.honorlock.coоm предоставлен доступ к вашему экрану, Закрыть доступ Скрыть 9:39 27°C PYC 23.06 2021 Для поиска SAMSUNG

ok ht nces You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.152 6.153 Maturity Month/Year May 35 May 38 May 44 Bid Asked Change 103.4586 103.5314 +.3274 104.4926 104.6383 +.4269 ?? +.5379 ?? Yield to maturity Ask Yield 5.959 ?? 3.991 In the above table, find the Treasury bond that matures in May 2038. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 0 2 5 Period $19.53 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Cash Flows View an example Get more help. ★ a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) A 6 1 MacBook Pro & 7 $19.53 * 8 9 C 59 $19.53 60 $19.53+$1,000 Clear all BUB 0 {

Cese Window Clck Submit to complete this assessment. Question 20 What is the yield to maturity of an 11 percent semi-annual coupon corporate bond, which matures in 17 years, if the bond is selling for $792.14. O 14.28 O 2.14% O 14.32% O 7.74% O None of the listed items is correct Click Submit to compiete this assessment. MacBook Air 23 388 6. T K D V F. %24

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Question content area top Part 1 ​(Related to Checkpoint​ 9.4)  ​(Bond valuation) A bond that matures in 10 years has a ​$1,000 par value. The annual coupon interest rate is 8 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 17 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually?       Question content area bottom Part 1 a.  The value of this bond if it paid interest annually would be ​$enter your response here. ​(Round to the nearest​ cent.) Part 2 b.  The value of this bond if it paid interest semiannually would be ​$enter your response here. ​(Round to the nearest​ cent.)

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H Video Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 4.95% yield. A 10-year Treasury bond yields 6.75%, and a 10-year corporate bond yields 9.85%. The market expects that inflation will average 3.15% over the next 10 years (IP10 = 3.15%). Assume that there is no maturity risk premium (MRP = 0) and that the annual real risk-free rate, r*, will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury securities: DRP = LP = 0.) A 5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet What is the yield on this 5-year corporate bond? Round your answer to two decimal places. % Check My Work Reset Problem

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Can you please walk me through this? Problem 6-11 DEFAULT RISK PREMIUM A company’s 5-year bonds are yielding 7.75% per year. Treasury bonds with the same maturity are yielding 5 2% per year, and the real risk-free rate (r*) is 2.3%. The average inflation premium is 2 5%; and the maturity risk premium is estimated to be 0.1 x (t 1) %, where t = number of years to maturity. If the liquidity premium is 1%, what is the default risk premium on the corporate bonds?

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Question content area top Part 1 ​(Related to Checkpoint​ 9.3) ​(Bond valuation)  Calculate the value of a bond that matures in 19 years and has a $1,000 par value. The annual coupon interest rate is 14 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 11 percent.       Question content area bottom Part 1 The value of the bond is ​$enter your response here. ​ (Round to the nearest​ cent.)

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