9) What is the Discount Yield (DY) and the Bond Equivalent Yield (BEY) on a $5 million commercial paper issue that currently sells at 98.625 percent of its face value and is 136 days from maturity? A. 3.32% DY; and 3.46% BEY. B. 3.84% DY; and 3.94% BEY. C. 3.86% DY; and 3.89% BEY. D. 3.64% DY; and 3.74 % BEY.

9) What is the Discount Yield (DY) and the Bond Equivalent Yield (BEY) on a $5 million commercial paper issue that currently sells at 98.625 percent of its face value and is 136 days from maturity? A. 3.32% DY; and 3.46% BEY. B. 3.84% DY; and 3.94% BEY. C. 3.86% DY; and 3.89% BEY. D. 3.64% DY; and 3.74 % BEY.

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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Assume that a $10,000.00 bond paying 8.5% interest is currently selling at 106. a. What is the current selling price of the bond?b. What is the current yield of this bond?
4. What is the yield-to-maturity of a bond that is selling at a 5% discount to par, paying 11.25% in annual interest on a semiannual basis, and maturing in 7 years? a. 11.23% b. 12.34% c. 13.10% d. 13.79%
Can you please answer the financial accounting question?
If 10-year T-bonds have a yield of 4.0%, 10-year corporate bonds yield 7.6%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.23% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond? Round 2 decimal places
1. Calculate the total annual interest, total cost, and current yield for the bonds. (Round the"Current yield" to the nearest tenth percent and other answers to the nearest whole dollar.)Bond Number of bonds purchased Selling price Total annual interest Total cost Current yieldMuni 5 22 6 81.375 $ $ %
6. Yield to Maturity Each of the bonds shown below pays interest annually. Bond Par Value Coupon Years to Maturity Current Value A 12% 15 B 10% 10 C $1000 13% 10 D $1000 8% 4 a) Calculate the yield to maturity (YTM) for each bond. $1000 $500 $850 $560 $1200 $900 b) What relationship exists between the coupon rate and yield to maturity and the par value and market value of a bond? Explain.
A bond has a $1,000 face value, a market price of $1,045, and pays semiannual payments of $42.25 each. What is the coupon rate? A. 6.76 percent B. 7.00 percent C. 7.12 percent D. 8.45 percent E. 8.64 percent
What is the coupon rate of a two-year, $10,000 bond with semiannual coupons and a price of $9,608.51, if it has a yield to maturity of 6.3%? OA. 3.349% OB. 4.186% C. 5.023% OD. 5.86%
Consider the following bonds: Bond A B CD с Coupon Rate (annual payments) 0.0% 0.0% 4.3% 7.7% The percentage change in the price of bond A is |___%. (Round to one decimal place.) What is the percentage change in the price of each bond if its yield to maturity falls from 6.9% to 5.9%? The percentage change in the price of bond B is %. (Round to one decimal place.) Maturity (years) 15 The percentage change in the price of bond C is %. (Round to one decimal place.) The percentage change in the price of bond D is %. 21500
A bond with $898,000 face value that pays 10% coupon is issued at 102 1/2, i.e., 102.5% of its face value. Is this bond issues at premium of discount? And what is the amount of cash received as a result of issuing this bond? a. Premium; $920,450 b. Discount; $673,500 c. Premium; $987,800 d. PAR Value; $898,000 A B C D
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%
I want to correct answer accounting

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