A $1,000 face value, 6.5% coupon, Province of Ontario bond with 18 years to run until maturity is currently priced to yield investors 6.2% compounded semiannually until maturity. How much lower would the bond's price have to be to make the yield to maturity 6.7% compounded semiannually? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price should be lowered by $

A $1,000 face value, 6.5% coupon, Province of Ontario bond with 18 years to run until maturity is currently priced to yield investors 6.2% compounded semiannually until maturity. How much lower would the bond's price have to be to make the yield to maturity 6.7% compounded semiannually? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price should be lowered by $

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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AT - Bill that is 225 days from maturity is selling for $98, 850. The T. Bill has a face - value of $ 100,000 (LG 5 - 2) Calculate the Discount Yield on the T. Bill. Calculate the Bond Equivalent Yield on the T Bill. Calculate the EAR (Equivalent Annual Return) on the T. Bill. What would the Bond Equivalent Yield be, if all other factors remain the same, but the T. bill has a maturity of 300 days. B
# 1 Assume a par value of $1,000. Caspian Sea plans to issue a 5.00 year, annual pay bond that has a coupon rate of 3.00%. If the yield to maturity for the bond is 3.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity %23
Consider the following $1,000 par value zero-coupon bonds: Bond Maturity A 1 BU C D Years until Yield to Interest rate 2 3 Maturity (years) 1 2 3 4 Maturity 8.00% 9.00 9.50 10.00 Required: a. According to the expectations hypothesis, what is the market's expectation of the one-year interest rate three years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What are the expected values of next year's yields on bonds with maturities of (a) 1 year; (b) 2 years; (c) 3 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) YTM Check my work % % % %
# 1 Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay bond that has a coupon rate of 8.17%. If the yield to maturity for the bond is 7.56%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 18.00 year, semi-annual pay bond that has a coupon rate of 7.93%. If the yield to maturity for the bond is 8.13%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not submitted Attempts Remaining: Infinity # 3 Assume a par value of $1,000. Caspian Sea plans to issue a 26.00 year, semi-annual pay bond that has a coupon rate of 16.00%. If the yield to maturity for the bond is 16.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered
Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 7.85%. If the yield to maturity for the bond is 8.42%, what will the price of the bond be? Answer format: Currency: Round to: 2 decimal places. C unanswered not_submitted Attempts Remaining: Infinity Submit #4 What is the value today of a money machine that will pay $1,077.00 per year for 19.00 years? Assume the first payment is made 5.00 years from today and the interest rate is 14.00%. Submit Answer format: Currency: Round to: 2 decimal places.
#2 Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.11%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity %23
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,180. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: YTC What is the current yield? What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calculation, if required. Negative value should be indicated by a minus sign. Round your answer to two decimal places.
solution should be mathematically explained (no excel or computer code)
You buy a 20-year bond with a coupon rate of 9.6% that has a yield to maturity of 10,5% (Assume a face value of $1,000 and semiannual coupon payments) Six months later, the yield to maturity is 11,5%. What is your return over the 6 months? Note: Do not round mediate calculations. Enter your answer as a percent rounded to 2 decimal places, Negative amount should be indicated by a minus sign.
Determine the selling price PV, per $1,000 maturity value, of the bond. HINT [See Example 8.] (Assume twice-yearly interest payments. Do not round those payments to the nearest cent. Round your final selling price to the nearest cent.) 5 year, 4.375% bond, with a yield of 4.485% PV = $
A 4.70 percent coupon municipal bond has 19 years left to maturity and has a price quote of 107.00. The bond can be called in eight years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) Compute the bond's current yield. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current yield 4.39 % Compute the yield to maturity. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Yield to maturity Compute the taxable equivalent yield (for an investor in the 35 percent marginal tax bracket). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Equivalent taxable yield % Compute the yield to call. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Yield to call %
#22 Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 7.00%. If the yield to maturity for the bond is 7.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity

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