A bond has a par value of $1,000, a coupon rate of 3.00 percent (paid annually), and that matures in 15 years. Assume the market interest rate on this bond is 12.05 percent and it increases 50 basic points. Calculate the percentage change in the value of the bond. (You should calculate duration of the bond first). Round the answer to two or more decimal places in percentage form. Please write % sing in a units box.. You should use an online Duration calculator. One is provided at this link (copy and paste the link into another browser tab): https://exploringfinance.com/bond-duration-calculator/

A bond has a par value of $1,000, a coupon rate of 3.00 percent (paid annually), and that matures in 15 years. Assume the market interest rate on this bond is 12.05 percent and it increases 50 basic points. Calculate the percentage change in the value of the bond. (You should calculate duration of the bond first). Round the answer to two or more decimal places in percentage form. Please write % sing in a units box.. You should use an online Duration calculator. One is provided at this link (copy and paste the link into another browser tab): https://exploringfinance.com/bond-duration-calculator/

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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Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.9%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ (Round to the nearest cent.)
You purchase a bond with an invoice price of $1,014. The bond has a coupon rate of 9 percent, and there are 2 months to the next semiannual coupon date. What is the clean price of the bond? Enter the answer with 2 decimals (e.g. 954.23).
Pls show full steps. Thanks
Consider a 20-year bond with a face value of $1,000 that has a coupon rate of 5.7%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. (Round to the nearest cent.)
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What is the value of a bond that has a par value of $1,000, a coupon of $120 (annually), and matures in 10 years? Assume a required rate of return of .0702. Instruction: Type your answer in dollars, and round to two decimal places.
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Assume that a bond will make payments every six months as shown on the following timeline (using six- month periods): Period 0 Cash Flows $20.87 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? 2 $20.87 *** a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) 39 $20.87 40 $20.87 + $1,000
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): a. What is the maturity of the bond (in years)? (Round to the nearest integer.)b. What is the coupon rate (as a percentage)? (Round to two decimal places.)c. What is the face value? (Round to the nearest dollar.)
PLEASE SHOW EXCEL FORMULAS 6. A bond has just been issued. The bond will mature in 7 years. The bond’s annual coupon rate is 8% and the face value of the bond is $1,000. The bond’s (annual) yield to maturity is 5%. a.Compute the bond’s duration if coupons are paid semi-annually: i. Using the VBA dduration function.
A bond with a face value of $1,000 has 10 years until maturity, has a coupon rate of 5.2%, and sells for $1,105. a. What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) b. What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) c. What is the yield to maturity if interest is paid semiannually? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)
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