A. you offered to buy a 4 year coupon corporate bond in the beginning of its 7th monthon its third year for $963.94. its face value is $1,000 and its coupon rate is 5.172% per annum, with coupon paid at the end of each quarter. Government bond rate now is 6.9%. a. is $963.94 a good price for you to buy it or not ? what is the fair price for the bond ? b. what is the yield if you buy at the price that you been offered ? c. if the government bond rate suddenly goes down to 4.7% what will be the new fair value of the bond ?

Q: ← Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: Face Value = $1,000Annual Coupon Rate = 7.4%Annual Coupon = 7.4% * $1,000Annual Coupon = $74Time to…

Q: What is the cost of debt for Kenny Enterprises if the bond sells at $938.10? % (Round to two decimal…

A: Answer A. $938.10 Given  Fv= 1000 Pv=938.10 Coupon rate = 10.2% Pmt= 10.2×1000/2 = 102/2 = 51 N=…

Q: A government bond pays coupons at an annual rate of 6%. It has a nominal value of K100 and it will…

A: Dirty price of a bond The bond price is called dirty price when it included the accrued interest.…

Q: Me be Happy with calculation

A: 1) First, let's calculate the yield to maturity (YTM) of the original bond:    $1000 = $543 * (1 +…

Q: Direction: Solve for the following problems involving stocks and bonds 2 Find the amount of the…

A: Coupon Payment: It is the regular interest rate payable on a bond represented as a percentage of the…

Q: An $6,000 face-value bond matures in four (4) years and pays 6% per year payable Semiannually An…

A: Investor pays the bond’s value at investor’s required rate of return. Bond’s value is the present…

Q: 63. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4…

A: The real coupon rate is equal to nominal coupon rate minus inflation rate

Q: Suppose you own a 30-year bond issued by JL Chemicals with a face value of $1,000 paying a…

A: Bonds price is always linked with the interest rates as the price of the bond is directly inversely…

Q: 64. You plan to buy a $1,000 face value 10-year bond that earns $60 in interest every six months.…

A: Please find the answer to the above question below:

Q: 10. Determining Interest and Approximate Bond Value. Assume that three years ago, you purchased a…

A:

Q: 1. You are financial advisor for a friend who addresses the following issues: a) A company issues…

A: a)Face value = £10,000,000Maturity = 5 yearsInterest rate = 6% The initial price of the bond is

Q: Suppose your company needs to raise $40.3 million and you want to issue 30-year bonds for this…

A: Bond are financial instrument, issued to raise funds from the outside market that represent a loan…

Q: PLEASE DO NOT PROVIDE AN EXCEL SOLUTION a. 5% 5-year bond is available in the market at Rs. 950.…

A: YTM and YTC are financial terms related to bonds. YTM is the annualized return anticipated on a bond…

Q: 7. Imperial Oil decides to raise $500 million by issuing 7-year semi-annual bonds that pay interest…

A: A bond represents a debt instrument that obliges the issuer to pay regular periodic payments along…

Q: You will be paying $8,600 a year in tuition expenses at the end of the next two years. Bonds…

A: Here,AnnualObligation is $8,600Yield is 7%Time Period is 2 years

Q: yield that Brian would earn by selling the bonds today? (Round answer to 2 dec !places, e.g. 15.25%)…

A: In simple words, yield is the rate of return that an investor earns in the form of interest or…

Q: Please solution this question

A:

Q: D4) The one-year spot rate is 2.0%, the two-year spot rate is 2.8% and the three-year spot rate is…

A: Coupon Payment = Face Value x Coupon rate Price of the Bond= Present value of Coupon Payment +…

Q: You are offered to buy a 4-year coupon corporate bond in the beginning of its 7th month on its third…

A: Because you have posted multiple questions we will answer only the first question and for the…

Q: If a $1,000 par value bond pays a 4% coupon each year, paid semi-annually, how much would each…

A: Coupon payments are paid to the bondholders by the issuer of the bond.

Q: Duration of this bond years

A: We can determine the duration of the bond by rearranging the formula below:

Q: If the current price of a 10-year 4.5% coupon bond which pays semiannually is $96.10, what is its…

A: Here, Face value (FV) = $100 Coupon rate = 4.5% semiannually Coupon payments (PMT) = (4.5% of 100)/2…

Q: The Government just issued a 2-year coupon bond with a face value of $1,000 and annual coupons of…

A: - Face value of bond (FV): $1,000- Annual coupon payment (C): $75- 1-year spot rate: 6.5%- 2-year…

Q: Suppose government economists have forecasted one-year T-bill rates for the following two years.…

A: A T-bill, or Treasury Bill, is a short-term debt security issued by the United States Department of…

Q: bond will be a deferred coupon bond and will have a zero percent coupon the first five years and…

A: Bonds are the financial instruments issued by firms to holders for a specific time period. This is a…

Q: What would be the face value, in terms of its price and yield to maturity, of a U.S. T-bill on the…

A:

Q: Suppose that a 30-year government bond has a maturity value of $1000 and a coupon rate of 6%, with…

A: Price of bond will be calculated using formula :   Price of bond = Interest × [(1+r)n - 1(1+r)n  ×…

Q: The company you work for is offering bonds that have a face value of $1,000 and a life of 10 years.…

A: Effective annual interest rate Effective annual interest rate defines the real return on investments…

Q: One year ago you bought a $10,000, 4-year Government of Canada Treasury Bill (discount bond) at the…

A: Solution:- The current market price of a bill means the price at which a bill is trading in the…

Q: 1. You are considering a 20-year, $1,000 par value bond. Its coupon rate is 10%, and interest is…

A: 1. You should be willing to pay around $359.80 for the bond. This amount is calculated by finding…

Q: Suppose you buy a bond for $8,000 with a coupon rate of 4%. Next year, interest rates rise to 5%.…

A: Bond price today at an increased interest rate will be found by using the PV function in the Excel…

Q: You own government bonds with a face value of $2 million. The bonds mature 6 years and 3 months from…

A: The Current Value of the bond/Worth of a bond is Computed as the value of cash flows from a bond (in…

Q: 2. Above what coupon rate could you profitably buy a $100,000 face-value 10-year Treasury bond if…

A: A Bond is an instrument that represents the loan that is made by the investor to the company and…

Q: es Suppose your company needs to raise $69 million and you want to issue 30-year bonds for this…

A: A bond is a fixed-income investment that represents a loan made by an investor to a borrower,…

Q: 4.   You bought a 10-year, 5% coupon bond for $1,000 and sold it 1 year later for $1,100. What is…

A: The holding period rate of return would be calculated by using the following formula:Rate of…

Q: Ma1. Please give only typed answer. You are considering buying a municipal bond with a 10-year…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: Cost of debt. Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of…

A: The cost of debt of bonds issued refers to the rate of return that the issuer must pay to…

Q: uppose you want to purchase a bond with a $1,000 par value maturing in 4 years with an 8% annual…

A: The price of bond shall be present value of all coupon and present value of face value Bond price…

Q: You have been offered a six-year bond issued by Barone, Inc., at a price of $943.22. The bond has a…

A: Compound = semiannual = 2Time = t = 6 * 2 = 12Offered price = $943.22Coupon rate = 8/2 = 4%Market…

Q: Your company wants to raise $8.5 million by issuing 10-year zero-coupon bonds. If the yield to…

A: Information Provided: Bond current value = $8,500,000 Yield to maturity = 5% Period of bond = 10…

Q: In November 2016 you purchase a 4 year US Government bond. The bond has an annual coupon rate of…

A:

Q: You are considering the purchase of a $1,000 face value bond issued by ABC company. The bond pays 9…

A: Bond is the fixed income security which provides its holder with the promise of future coupon…

Q: You own $1,000,000 in face value of bond that is currently priced at 99.50. The accrued interest per…

A: Face Value = 1,000,000 Haircut = 0.25% 5 days repo Repo rate = 2%

Q: Dewey Cheetham & Howe Accounting firm is considering the purchase of a $1,000 New Haven Municipal…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.