### Bond and Investment Calculations#### Section 3: Semi-Annual Coupon Rates on Government Bonds1. **Bond with YTM 4.00%** - **Semi-annual Coupon Rate:** 3.57% - **Face Value:** 100 - **Maturity (Years):** 10 - **Price:** 952. **Bond with YTM 4.30%** - **Semi-annual Coupon Rate:** 4.53% - **Face Value:** 100 - **Maturity (Years):** 15 - **Price:** 1053. **Bond with YTM 5%** - **Semi-annual Coupon Rate:** 5.00% - **Face Value:** 100 - **Maturity (Years):** 25 - **Price:** 1004. **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):** 9.0940452. **Bond with Price $880.00** - **Maturity (Years):** 3.2593333. **Bond with Price $900.00** - **Maturity (Years):** 2.6863484. **Bond with Price $952.16** - **Maturity (Years):** 1.254190This spreadsheet provides calculations for semi-annual coupon rates and the maturity of zero coupon bonds based on given parameters.

GIven The YTM 4% Face value 100

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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esc If 1 2 3 4 5 6 7 8 10 11 13 14 16 19 1. Find the Yield to Maturity (YTM) for the following government bonds Price Semi-ann Face valu Maturity YTM YTM Semi-ann Face valu Maturity Price YTM Semi-ann Face valu Maturity E 99.83 2.25% 100 3 2.31% ? 2.64% 2.38% 100 4 Q 2. Based on the following YTM for the various maturities, what price are these government bonds trading at? -$99.02 4.00% 3.57% 100 Type here to search Sheet1 f2 Price Semi-ann Face valu Maturity YTM a 3. What is the semi-annual coupon rate on the following government bonds? 2 YTM Semi-ann Face valu Maturity Price YTM Semi-ann Face valu Maturity W f3 # 98.45 2.50% 100 * 2.61% 3 2.17% 2% 100 2 4.30% 100 15 f4 Price Semi-ann Face valu Maturity YTM $ T YTM Semi-ann Face valu Maturity Price YTM Semi-ann Face valu Maturity 99.25 2.75% 100 10 2.84% f5 3% 5.50% 100 20 -$137.39 olo 5% 100 LO 5 TE Price Semi-ann Face valu Maturity YTM f6 YTM Semi-ann Face valu Maturity 97.59 3% 100 30 3.12% 17 6% 5.96% 100 30 hp &
2. Find the value (price) of a 3 year bond with a par value of $100 and coupon rate of 5% per annum that pays interest annually assuming that the appropriatye discount rate (yield to maturity) is 10% year pv 1 2 3 total a. 87.57 b. 89.82 c. 90.11 d. 91.85 e. none
Calculate the annual interest in dollars in current yield as a percent of the bond. Round your percentage to one decimal Place? ( for annual interest I got $8.25 it’s wrong ) ( current yield is correct 8.0)
4. Compute the four-year spot rate using the information below about two 4-year annual coupon bonds: Face value Face value Price Bond I Bond II $800 5% $575 $1,000 6% $723
Using the following information, determine the maturity risk premium on 10 year bonds: Rate % inflation 0.74 T-bill 5.00 10y T-Bond 6.00 10y AAA Corporate 6.37 10y AA Corporate 7.62
Which of the following bonds will have the larger price change (dollar value) for a 75- basis point change in yield? A. A $120 dollar bond with duration 2.25 B. A $70 dollar bond with duration 3.25 C. A $160 dollar bond with duration 1.75 D. A $200 dollar bond with duration 1.25 E. A $300 dollar bond with duration 0.75
If 10-year T-bonds have a yield of 7.1%, 10-year corporate bonds yield 9.7%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond? O a. 2.60% O b. 2.20% O c. 3.00% O d. 5.80% O e. 0.90%
Review the Bond Table below; all bonds have semi-annual payments. Security. Coupon Rate Face Value 0.00% $1,000 4.50% $1,000 5.00% $1,000 $1,000 1-yr Treasury 5-yr Treasury 10-yr Treasury 5-yr Corporate (rated A) Multiple Choice 10-year Corporate 8.40% (rated BBB) What is the BBB Default Risk Premium (rdp-BBB)? O O 4.80% 1.75% 2.20% 2.75% 3.40% None of the above Price $ 965.90 $991.18 $976.94 $912.46 $1,000 $1,044.66
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.

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