A ten-year 3% bond with semiannual coupons is purchased to yield 6% compounded semiannually. The par value and redemption value are both 1,000. What is the book value of the bond four years after issue of the bond?
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- A 10-year bond with a face value of $1,000 has a coupon rate of 9.0%, with semiannual payments. a. What is the coupon payment for this bond? b. Enter 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 $ every six months. (Round to the nearest cent.)A bond is priced at $1,100, has 10 years remaining until maturity, and has a 10% coupon, paid semiannually. What is the amount of the next interest payment?A two-year amortizing bond has a coupon rate of 4% and pays its coupons semiannually. Coupon payments are based upon the outstanding face value at the startof the coupon period. It has a face value of £200 and £50 of the face value isamortized every half year. The yield to maturity is 1% per year.a) Calculate the price of the bond. b) Calculate the duration of the bond. c) Calculate the convexity of the bond. d) If the yield to maturity rises to 4% estimate the price of the bond using bothduration and convexity. (Do not calculate the actual new price of the bond) e) Explain why the duration and convexity are used jointly to provide the estimate ofthe price change of the bond than just using duration.
- A 30-year 8% annual coupon bond with a face value of 1000 is purchased. At the time of purchase, the interest rate is 6%. After the 7th coupon payment, the interest rate rises to 10%. Calculate the difference between the book value of the bond and the market value of the bond immediately after the 7th coupon payment.A bearer bond worth Rs. 50,000 after six years. What will be the present value of the bond if interest is added yearly at 12 percent.A two-year amortizing bond has a coupon rate of 4% and pays its coupons semi- annually. Coupon payments are based upon the outstanding face value at the start of the coupon period. It has a face value of £200 and £50 of the face value is amortized every half year. The yield to maturity is 1% per year. a) Calculate the price of the bond. b) Calculate the duration of the bond. c) Calculatetheconvexityofthebond. d) If the yield to maturity rises to 4% estimate the price of the bond using both duration and convexity. (Do not calculate the actual new price of the bond) e) Explain why the duration and convexity are used jointly to provide the estimate of the price change of the bond than just using duration.
- You purchase a KD 3000 face value bond with 5 years remaining in its maturity period. The bond has current yield of 15% and its payment are KD 45 made every month. If compounding is annually, calculate the following: 1. The purchase value of the bond. 2. The yield to maturity. (Show trial and error with interpolation)A 15 years bond with annual coupon rate equal to 10% (paid semiannually), if the par value of the bond is JD 10,000, and the required rate of return forl similar risk level investments is 8%, and the bond is redeemable at JD facei value, what is the market value of the bond after three years of issuance?An investor buys a 4.7% annual payment bond with 8 years to maturity. The bond is priced at a yield - to - maturity of 6%. What is the bond's Macaulay duration?
- A three-year bond is issued with a 9% coupon paid annually, and a maturity value of £100. If the current yield-to-maturity for three-year bonds is 12%, what is the issue price?A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and pays 15 percent per annum, how much should the annual earning interest be? Round off to four decimal places in the final answer/s.Today an investor purchases a 30-year bond (face value =\$1,000) for $627.73. The bond has a coupon rate of 4% and a yield to maturity of 7%. It pays coupons annually (not semiannually). The investor plans to hold the bond for 1 year. If the yield to maturity of the bond becomes 8% at the end of the year, what is the bond rate of return over the year?