3. What is the semi-annual coupon rate on the following government bonds? YTM Semi-ann Face valu Maturity Price 4.00% 3.57% 100 10 95 YTM Semi-ann Face valu Maturity Price 4.30% 4.53% 100 15 105 YTM Semi-ann Face valu Maturity Price 5% 5.00% 100 25 100 YTM Semi-ann Face valu Maturity Price 6% 5.96% 100 30 97 4. How many years are the following zero coupon bonds, if they all yield 4% and have a face value of $1000 $700.00 Price Maturity 9.094045 Price $880.00 Maturity 3.259333 Price $900.00 Maturity 2.686348 Price $952.16
3. What is the semi-annual coupon rate on the following government bonds? YTM Semi-ann Face valu Maturity Price 4.00% 3.57% 100 10 95 YTM Semi-ann Face valu Maturity Price 4.30% 4.53% 100 15 105 YTM Semi-ann Face valu Maturity Price 5% 5.00% 100 25 100 YTM Semi-ann Face valu Maturity Price 6% 5.96% 100 30 97 4. How many years are the following zero coupon bonds, if they all yield 4% and have a face value of $1000 $700.00 Price Maturity 9.094045 Price $880.00 Maturity 3.259333 Price $900.00 Maturity 2.686348 Price $952.16
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:### Bond and Investment Calculations
#### Section 3: Semi-Annual Coupon Rates on Government Bonds
1. **Bond with YTM 4.00%**
- **Semi-annual Coupon Rate:** 3.57%
- **Face Value:** 100
- **Maturity (Years):** 10
- **Price:** 95
2. **Bond with YTM 4.30%**
- **Semi-annual Coupon Rate:** 4.53%
- **Face Value:** 100
- **Maturity (Years):** 15
- **Price:** 105
3. **Bond with YTM 5%**
- **Semi-annual Coupon Rate:** 5.00%
- **Face Value:** 100
- **Maturity (Years):** 25
- **Price:** 100
4. **Bond with YTM 6%**
- **Semi-annual Coupon Rate:** 5.96%
- **Face Value:** 100
- **Maturity (Years):** 30
- **Price:** 97
#### Section 4: Zero Coupon Bonds
- **Understanding Zero Coupon Bonds:**
Zero coupon bonds do not pay periodic interest. Instead, they are sold at a discount and mature at their face value.
- **Bonds with Yield 4% and Face Value $1000:**
1. **Bond with Price $700.00**
- **Maturity (Years):** 9.094045
2. **Bond with Price $880.00**
- **Maturity (Years):** 3.259333
3. **Bond with Price $900.00**
- **Maturity (Years):** 2.686348
4. **Bond with Price $952.16**
- **Maturity (Years):** 1.254190
This spreadsheet provides calculations for semi-annual coupon rates and the maturity of zero coupon bonds based on given parameters.
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