A bond has a $1,000 par value bond with a 4% annual coupon rate and it matures in 8 years. The yield to maturity is 5.1%, find the bond’s price. Imagine the bond is callable after 5 years, where the call price is $1100. Find the yield to call.
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- Don't use chatgpt, Suppose a five-year, $1,000 bond with annual coupons has a price of $902.01 and a yield to maturity of 5.7%. What is the bond's coupon rate? The bond's coupon rate is ________%. (Round to three decimal places.) I will 5 upvotesConsider a $1,000 par value bond, with no maturity. If the bond is prices to yield 5%, what is the bond's price if it has a 7% coupon rate? Please answer fast i give you upvote.use Microsoft excel and show formulas you used. i. A 4 year Treasury Bond with a face value of $1,000 and an annual coupon rate of 5.80% has a yield to maturity of 4.29%. This bond makes 2 (semi- annual) coupon payments per year and thus has 8 periods until maturity. What is the price sensitivity of a bond to changes in yield and how does that compare to the duration approximation, and compare to the duration plus 150 (d) convexity approximation? mu?
- If you have a coupon bond, its face value is $1,000 and the coupon rate is 4%. Complete the following table, then calculate the rate of return for the bond. If you know that it was purchased at the nominal value, comment on the results. due date return at maturity the price 2 0.02 3 0.04 5 0.06 Present Value Annuity value % n value % n 0.961 0.02 2 1.97 0.02 2 0.925 0.04 2 1.89 0.04 2 0.889 0.04 3 2.78 0.04 3 0.906 0.02 5 4.71 0.02 5 0.747 0.06 5 4.21 0.06 5The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100 face value of a two-year, zero-coupon, risk-free bond? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) YTM View an example Get more help - % 5 J 1 5.01% B 6 Y MacBook Pro H 2 5.52% & 7 N Print U J * 8 3 5.78% Done M 1 ( 9 K 4 5.94% < V 20 0 5 6.06% X command V ↓ X Clear all 1 { + = Check answer deleteConsider a bond with a face value of $5,000 that pays a coupon of $200 for 5 years. Suppose the bond is purchased at $5,000, and can be resold next year for $4,800. What is the rate of return and the yield to maturity of the bond? rate of return = 4%, yield to maturity = 0% rate of return = 0%, yield to maturity = 4% rate of return = 8%, yield to maturity = - 4% rate of return = 4%, yield to maturity = 4%
- Suppose you purchase a $1000 Face-Value Zero-Coupon Bond with maturity 30 years and yield to maturity 4% quoted with annual compounding. Show the bond cash flows on a time line and compute the current price of the bond Draw a graph to illustrate how the price of this bond will change as it gets closer to maturity – Price (on y axis) vs Time (on x axis). Why is a zero-coupon bond more sensitive to interest rate changes than similar coupon bearing bonds (2 or 3 sentences)?Consider the following fixed income security: Par: $1000 Coupon rate: 4% Maturity: 5 years YTM: 3.5% 7. What is the value of this bond? 8. What is Macauley’s Duration of this bond? 9. Were you to replicate the bond by holding a 1-year maturity Zero and a perpetuity at 4%, what percentage would you invest in the Zeros to match the bond?9You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You know it has a current yield of 7.00%. What is its yield to maturity? The bond has 6 years to maturity. Current Yield = (annual payment / price). (hint: solve for price to answer the question). O 4.79% O 4.71% O 4.40% O 4.77% O 4.73%
- You are holding a 5-year bond with a 6% annual coupon rate, an 8% yield to maturity and a $1,000 par value. Coupons are paid annually. A. How much will the bond price change if the market yield falls by 1%? B. Calculate the duration of this bond when the yield to maturity is 8%. C. What are the predicted bond prices when you use duration? How large is prediction error in percentage?Don't use ai answer,I will 5 upvotes You are given the following information about a bond:this bond has 10 years until maturity, has a $1,000 parvalue; pays an 9% semiannual coupon, is callable in 5years, and currently sells at a price of $1,075. If called,the bond pays par value and one additional couponpayment. What is the yield to call on this bond?1) 7.75% 2) 6.85% 3)8.25% 4)8.56% 5)7.91%The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). a. Suppose that today you buy an annual coupon bond with a coupon rate of 8.3 percent for $785. The bond has 8 years to maturity and a par value of $1,000. What rate of return do you expect to earn on your investment? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b-1. Two years from now, the YTM on your bond has declined by 1 percent, and you decide to sell. What price will your bond sell for? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b-2. What is the HPY on your investment? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Rate of return b-1. Price b-2. Holding period…