A zero-coupon bond has a par value of $20,000 and will mature in 15 years. If the yield to maturity is 5.2% with semi-annual compounding, what is the price of the bond?
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?You are looking at a 18-year zero-coupon bond that has a yield to maturity of 5.0% . What is the value of the bond? Assume semi-annual compounding. leWhat is the price of a bond with a coupon rate of 5.20% and semi-annual payments, if the yield-to-maturity is 10.20% and the bond matures in 20 years? Assume a par value of $1,000.
- What is the yield-to-maturity of a bond with a coupon rate of 9.0%, par value of $2000, 7 years until maturity, and a value of $987.33 if coupons are paid annually with the next one due in one year?What is the semi-annual coupon bond's nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 119% with coupons rate of 10%? Assume the par value of the bond is $1,000.A 6.75 percent coupon bond with 20 years left to maturity is priced to offer a 6.0 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.6 percent. (Assume interest payments are semiannual.) What would be the total return of the bond in dollars? What would be the total return of the bond in percent?
- What is the duration of a two-year bond that pays an annual coupon of 9 percent and has a current yield to maturity of 16 percent? Use $1,000 as the face value.You are purchasing a 10-year, zero–coupon bond. The yield to maturity is 8.69 percent and the face value is $1,000. What is the current market price? Assume semiannual compoundingsuppose a 30 year, pay coupon of 4% is priced to yield 5%. par = 1000. the bond pays its coupon annually. calculate the instrinsic value of the bond. decide whether the bond is at premium or discount? please show the calculation using excel
- Assume the following yield to maturities: one year YTM 6%, two year YTM 7%, and three year YTM is 5%. A) What is today’s price of a three year zero coupon bond, 1000 par?A 25-year coupon bond pays an annual coupon of 5 and has a face value of100. If the current price is 100, what is the yield to maturity?Consider a bond selling at par of $1,000 with a coupon rate of 5% semi-annualcoupon payment, and 10 years to maturity.(a) What is the price of this bond if the required yield is 15%?(b) What is the price of this bond if the required yield increases from 15% to 16%,and by what percentage did the price of this bond change?(c) What is the price of this bond if the required yield is 5%?(d) What is the price of this bond if the required yield increases from 5% to 6%, andby what percentage did the price of this bond change?(e) From your answers of parts (b) & (d), what can you say about the relative pricevolatility of a bond in a high-interest-rate environment compared to alow-interest-rate environment?
