4. Caleulate the price of these bonds, SHOW YOUR WORK )4-year Quebec 6.00% semi-annual, $100 par value. Investors require a yield to maturity of 7% compouaded semi-annually. Mode- PY- C/Y- PMT= FV- PV = b) 4-year Government of Alberta strip bond, S100 par value. nvestors require a yield to maturity of 7i compounded annnally PMT

4. Caleulate the price of these bonds, SHOW YOUR WORK )4-year Quebec 6.00% semi-annual, $100 par value. Investors require a yield to maturity of 7% compouaded semi-annually. Mode- PY- C/Y- PMT= FV- PV = b) 4-year Government of Alberta strip bond, S100 par value. nvestors require a yield to maturity of 7i compounded annnally PMT

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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Similar questions

Ef 420.
If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount ☐ a. equal to the face value b. greater than face value c. that cannot be determined d. less than face value
You have the following information regarding the bond ABC. Semiannual $25 payments YTM 8% Maturity (in 4. years) Par value $1,000 Let's assume the modified duration of this bond is 4. Based on this assumption and using the modified duration, estimate the price of the bond after a 65-basis-point decrease in interest rates.
Kk.428.
Subject-advance maths
4) A 10 year bond with $50, 000 face value has semiannual coupon rate 4% and semiannual yield rate 2%. Fill out the following amortization table. Principle Outstanding t Payment Interest герaid Balance 1 2 3 12
Consider a newly issued 4-year, 3.11% annual-pay bond trading at par. The present values of each of the bond’s promised payments, discounted at 6.11%. Its Macaulay duration is closest to A. 3.625 years. B. 3.723 years. C. 3.811 years. D. 3.924 years.
5. Calculate the yield to maturity for the following bonds to 2 decimal places. a) 7-year Canada 5.70% semi-annual, priced at 101.34 Mode= END N=14 P/Y = 2 C/Y=2 1/Y= 5.70 PMT= FV= PV = b) 13-year Canadian Tire 10.10% annual, priced at 99.16 Mode= N= P/Y= C/Y= 1/Y= PMT= FV=
H5. Please show all step by step calculation
a. An 8 ½%, 25-year, $1,000 bond is presently selling at a yield-to-maturity (YTM) of 9 4%. Assuming annual interest payments, what should you pay for the bond? b. What should you pay if interest is paid semiannually? c. Instead of a 25-year bond, they decide to issue 15-year bonds with annual payments. What should you pay for this bond if the YTM is 9 4%? Explain the differences in prices changes for (3a) and (3c) in terms of maturity. d. You buy an 8%, 15-year, $1,000 bond that pays interest annually when it is selling with a YTM of 7%. Immediately after you buy the bond, the YTM increases to 9%. What was the percentage change in the price of the bond? A bond has a market price that exceeds its face value. What type of bond is this? Describe the relationship between the coupon rate and the YTM. е.
s
2. A 20-year, 10% quarterly-pay bond has a par value of $1,000. What would this bond be? trading for if it were being priced to yield 15% as an annual rate? A. $665.14. B. $684.20 C. $694.39.

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