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What equation was used to get the Aftertax Cost of Debt?   Debt Face Value                                                                  1000 Bond Price                                                                  1271.59 Coupon Payment                                                        75 Maturity                                                                      50 Yield to Maturity                                                        11.64% Aftertax Cost of Debt                                              9.31%

Question 1 (1 point) The prices of a number of $1,000 (face value) zero coupon bonds are provided in the table below. Compute the yields on the zero coupon bonds. Plot the yield curve. What is the shape of the yield curve? Maturity Price Yield 1 year $965.35 k1 2 years $923.24 k₂ 3 years $885.25 k3 4 years $822.10 k₁ upward sloping downward sloping v-shaped flat

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Estimate the yield-to-maturity of a bond with the parameters given below.               Face value  $  1,000.00           Coupon rate 13%           Cost of capital 13%           Years to maturity 4                           Timeline 1 2 3 4   Probability of payment   1 1 0.5 0.5   Promissed payments             Expected payments             PV (payments)             Price of bond                           Yield-to-maturity

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What is the value of B8? A Bond Valuation 1 2 Time to Maturity (Periods) 3 Coupon Rate 4 Required Return 5 Frequency 6 Face Value 7 8 Invoice Price 9 An O$741.01 $1,000.00 O $1,008.33 $735.08 B 15 2/3 5.00% 10.00% 2 $ 1,000 ? C

Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1 comma 000.00 6% 5 11% ? $5 comma 000.00 11% 15 8% ? $5 comma 000.00 12% 20 5% ? $5 comma 000.00 7% 30 10% ? and prices. Price the bonds from the following table with annual couponLOADING... payments: LOADING... Question content area bottom Part 1 a. Find the price for the bond in the following table: (Round to the nearest cent.) Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1 comma 000.00 6%

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First part of question the answer is 4.3%   Also calculate this but also calculate with coupon of 5% for Bond a and 6% for Bond B.

What is the correct formula for B9? 1 A Bond Valuation 2 Settlement Date 2/15/2018 3 Maturity Date 2/15/2038 4 Coupon Rate 8% 5 Required Return 9% 6 Face Value 1000 7 Frequency 2 8 Basis 0 9 Current Yield ? O=(B4B6)/(PRICE(B2, B3, B4, B5, B6/B6100, B7, B8)/100*B6) =B4/PRICE(B2, B3, B4, B5, B6/B6, B7, B8) =(B4B6)/(PRICE(B2, B3, B4, B5, B6/B6100,B7, B8)*B6) O=B4 B6/PRICE(B2, B3, B4, B5, B6/B6/100,B7, B8) =B4B6/PRICE(B2, B3, B4, B5, B6/B6100,B7 B8)/100 B6

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e calculate the prices for bonds A-D and the yields for bonds D-G. Coupon Par Value Cash flows: Market price Yield Ꭰ E F G 6.00% 6.70% 5.40% 0.00% 1,000 (757) (813) (799) (505) 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0

Q1. Price and Yield. Yield (%) Price at required yield ( coupon rate/ maturity) 6% / 5 6% / 20 3%/5 3% / 20 0% / 5 0% / 20 year year year year year year 3.00 4.00 5.50 5.90 5.99 6.00 6.01 6.10 7.50 8.00 Assume face value is $100. a. Plot the table. b. What is the shape of the price-yield relationship? c. Describe the general relationship you observe between changes in bond prices and changes in yield to maturity.

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There are two zero-coupon bonds below: Coupon Term to rate maturity 0% 1 year 10% 2 years Bond A B FV $100 $100 Price $95.24 $107.42 Consider a 2-year coupon bond C with FV = $100, coupon rate=25%, and price = $ 138. Is Bond C underpriced/overpriced relative to Bonds A and B? What is the potential arbitrage trading strategy? O a. Overpriced; Long 3/22 unit of A; Long 25/22 unit of B; Short 1 unit of C O b. Underpriced; Long 3/22 unit of A; Long 25/22 unit of B; Short 1 unit of C O c. Overpriced; Long 3 unit of A; Long 25 unit of B; Short 1 unit of C O d. Underpriced; Long 3 unit of A; Long 25 unit of B; Short 1 unit of C

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A $1000 par value bond will have a current market value of $1000 when... Select one: a. bond's coupon rate = 10% default risk is zero O G. bond's coupon rate = 0 O d. investor required rate of return = bond's coupon rate O e. the bond is not taxable O f. bond's coupon rate> investor required rate of return O b.

8. 7. ADU А B C AA BB CC Using the present value charts find the value that should be paid for the following bonds: Coupon Rate Years to Maturity Required Rate of Return 10 25 20 12% 8% 10% 10% 6% 11% Find the Yield to Maturity for the following bonds Coupon Rate 6.0% 9.0% 12.5% Maturity Market Price 25 925.00 10. 850.00 20 1,060.00 Market Price Yield to Maturity

Bond Coupon Rate (%) Number of Years to Maturity Price TII $884.20 $948.90 $967.70 $456.39 W X Y 7 8 9 0 5 7 4 10 Calculate the yield to maturity for the four bonds. SOLCE USING BA2 CALC.

Consider an annual4 Coupon 4year bond payeng a coupon rate 75% If it is 000 par and the TTm= .04 Lohat is the price Q this bona ? what is the bon a's moaitied duration use the bona's modified duration to estimate the price caange the bond if YTm Changes to .o4s (So positive prce Change a syo.2 and a negalive Change 2 $40.2 Qu would be writen es-40.2) of use 5 decimal places

0 The yield curve reveals that the 1-year spot rate is 6.5%, the 2-year spot rate is 10.2%, and the 3-year spot rate is 12.4%. What is the duration of a 3-year bond with a face value of $1,000.00 making annual coupon payments of 11.2%? Do not report the Macaulay duration. a. 1.91 O b. 2.22 O c. 1.65 O d. 2.55 O e. O f. 1.76 O g. 2.42 2.05 Oh. 2.69

A coupon bond has the following characteristics: Purchase Price= 9800$ Annual Bond Rate= 7% Maturity= 2 years Face Value= 10000$ Period of Payment= Semi-annual What will the final earnings related to the acquisition of this coupon bond? DA 300$ B. 1600$ DC. 11200$ OD. 14000$

What is the duration of a $1000 Treasury bond that pays 10% annual coupon and has 2 years remaining to maturity? The current yield is 8%. If the current yield increases to 10%, what happens to the duration? Multiple Choice 1.9106; increasing the yield to maturity decreases the duration of the bond 1.619; increasing the yield to maturity decreases the duration of the bond 1.9106, increasing the yield to maturity increases the duration of the bond 1.619; decreasing the yield to maturity decreases the duration of the bond

Information below is the downloaded from Federal Reserve's treasury yield curve website:   Maturity 1 2 3 5YTM 0.260% 0.600% 0.860% 1.130%   All yields are par yield. Ie coupon rate same as ytm and bond priced at par of 100.   Q1a. Fine 4-year yield using avg of 3Y and 5Y yield;

What is the yield-to-maturity of a 4-year, 1000 USD 10% coupon bond that makes semi-annual coupon payments? The zero rates are Months 6 12 18 24 30 36 42 48 Period Zero Rate 1 2 3 4 5 6 7 CO 0.20% 0.30% 0.50% 0.80% 1.20% 1.70% 2.30% 3.00%

a) Calculate the yield rates for two bonds described below. Bond A В $8,000 6.5% Annually $9,000 9% Annually Purchase Price Coupon Rate Face Value $10,000 $10,000 Matures in 6 years б уears b) Correctly use Rate of Return (ROR) analysis to determine which, if either, bond an investor with a MARR of 10% should purchase. c) Confirm your answer to part (b) using Present Worth analysis. d) Confirm your answer to part (b) using Annual Worth analysis.

n = 10 r0,0 = 5% u = 1.1 d = 0.9 q = 1 - q = ½ Compute the price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100.

Use the following information for the questions. Assume 4-year annual coupon bond with coupon interest rate = 8%. Yield to maturity =8% and face value =1000 $. 6-1) Calculate intrinsic value of this bond.   A>   $1000 t CF PV factor PV(CF) 1 80.0000  0.9259  74.0740 2 80.0000  0.7938  68.5871 3   4 80.0000    1080.0000 0.7350  63.5071   793.8841 value     1000.     6-2) Explain the concept of modified duration and calculate it for the above bond.

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Par Value Coupon Rate Years to Maturity Yield to Maturity Price 1,000.00 8% 15 900.00 5,000.00 10% 10 4,430.00 5,000.00 6% 5 4,600.00 1,000.00 9% 5 1,000.00   What is the yield of the following bond if interest​ (coupon) is paid annual​ly?   What is the yield of the following bond if interest​ (coupon) is paid annual​ly? ​(Round to two decimal​ places.)