2.1.4 Bonds and obligations: Exercise 12Find the value on 15th January 2012 of a bond with a face value of €1,000which pays annual coupons of €52 on every 15th December and amaturity date of 15th December 2021. Also, suppose that:12.a) The required market yield on 15/Jan/12 is 5%;12.b) The required market yield on 15/Jan/12 is 5.25%;12.c) The required market yield on 15/Jan/12 is 5.5%.From your answers to sections a) to c), what can you say about therelationship between the price of the bond and the required yield?

The objective of the question is to calculate the value of a bond on a specific date given its face…

Answered: 2.1.4 Bonds and obligations: Exercise…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 1 (It's only one question)What is the price displayed in specialized newspapers for the following bonds March 19, 2020, (the semi-annual coupon)? Name of the society Coupon rate The price in % Yield to maturity Date of issue Due date TMS 8% ? 11% January 04,2005 January 04,2030 FLK 5% ? 14% April 16,2009 April 16,2024 BBL 12% ? 10% October 19,2012 October 19,2032
4 A $1,000.00, 8.0% Semi-Annual Bond matures on October 1, 2036. The Bond may be called at 102.5 on April 1, 2030. Round ALL final answers to the nearest penny (cent), NO dollar signs, USE commas where needed What is the Value of the bond on April 1, 2024, when the market rate is 7.0% if: The bond is held to maturity and redeemed at par? The bond is called on April 1, 2030 and redeemed at the call value?
1. What is the yield to maturity on the following bonds; all have a maturity of 10 years, a face value of 2000, and a coupon rate of 4 percent (paid semiannually). The bond's current prices are: a. $1,180 b. $ 2,400 c. Explain the relationship between yield to maturity and bond prices.
An investor wants to find the duration of a(n) 15-year, 6% semiannual pay, noncallable bond that's currently priced in the market at $587.05, to yield 12%. Using a 150 basis point change in yield, find the effective duration of this bond (Hint: use Equation 11.11). Question content area bottom Part 1 The new price of the bond if the market interest rate decreases by 150 basis points (or 1.5%) is $enter your response here. (Round to the nearest cent.)
* Assignment 3 i Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 248 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Price (%) 80.36 96.95 135.22 Complete this question by entering your answers in the tabs below. Required A Bond Coupon (%) 2 4 8 Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. YTM % % % Saved 22255 35445
Related to Checkpoint 9.2) (Yield to maturity) The market price is $850 for a 12-year bond ($1,000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity? Question content area bottom Part 1 The bond's yield to maturity is enter your response here%. (Round to two decimal places.)
Given: Bond Info: Coupon Rate 11.875% Quoted Yield 3.000% Maturity Date May 29, 2023 Frequency Tax Rate 20% Trade Info: Settlement Date April 25, 2022 Face Amount 30,000,000.00 From the settlement date, when is the last coupon date of the bond? Answer is in format dd/mm/yyyY | 29/11/2021 29/05/2021 25/04/2022
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(Related to Checkpoint 9.4) (Bond valuation) A bond that matures in 8 years has a $1,000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 16 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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11. A $25,000 bond paying 6.25% matures on September 27, 2029. An investor desiring a yield rate of 7.75% compounded semi-annually purchases the bond on January 10, 2017. a. What is the purchase price of the bond? b. What is the accrued interest? c. What was the quoted price of the bond? d. What was the market quotation of the bond? I old

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