expected in 1 year. What isBond A has a coupon rate of 10.18 percent, a yield-to-maturity of 14.22 percent, and a face value of $1,000.00; matures in 8 years; and pays coupons annually with the next coupon(X+Y+Z) if X is the present value of any coupon payments expected to be made in 3 years from today, Y is the present value of any coupon payments expected to be made in 6 years from today, and Z is thepresent value of any coupon payments expected to be made in 9 years from today?An amount equal to or greater than $147.11 but less than $176.43O An amount equal to or greater than $176.43 but less than $230.69An amount less than $85.62 or a rate greater than $230.69An amount equal to or greater than $129.54 but less than $147.11O An amount equal to or greater than $85.62 but less than $129.54

Bonds refer to the financial instrument that the government issues for raising funds to the general…

Bond A has a coupon rate of 10.18 percent, a yield-to-maturity of 14.22 percent, and a face value of $1,000.00; matures in 8 years; and pays coupons annually with the next coupon (X+Y+Z) if X is the present value of any coupon payments expected to be made in 3 years from today, Y is the present value of any present value of any coupon payments expected to be made in 9 years from today? coupon O An amount equal to or greater than $147.11 but less than $176.43 O An amount equal to or greater than $176.43 but less than $230.69 O An amount less than $85.62 or a rate greater than $230.69 O An amount equal to or greater than $129.54 but less than $147.11 O An amount equal to or greater than $85.62 but less than $129.54 What is expected in 1 year. payments expected to be made in 6 years from today, and Z is the

Bond A has a coupon rate of 10.18 percent, a yield-to-maturity of 14.22 percent, and a face value of $1,000.00; matures in 8 years; and pays coupons annually with the next coupon (X+Y+Z) if X is the present value of any coupon payments expected to be made in 3 years from today, Y is the present value of any present value of any coupon payments expected to be made in 9 years from today? coupon O An amount equal to or greater than $147.11 but less than $176.43 O An amount equal to or greater than $176.43 but less than $230.69 O An amount less than $85.62 or a rate greater than $230.69 O An amount equal to or greater than $129.54 but less than $147.11 O An amount equal to or greater than $85.62 but less than $129.54 What is expected in 1 year. payments expected to be made in 6 years from today, and Z is the

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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Bond A has a coupon rate of 10.04 percent, a yield-to-maturity of 14.79 percent, and a face value of $1,000.00; matures in 8 years; and pays coupons annually with the next coupon expected in 1 year. What is (X+Y+Z) if X is the present value of any coupon payments expected to be made in 3 years from today, Y is the present value of any coupon payments expected to be made in 6 years from today, and Z is the present value of any coupon payments expected to be made in 9 years from today? An amount equal to or greater than $82.70 but less than $124.77 O An amount equal to or greater than $141.42 but less than $172.16 O An amount equal to or greater than $124.77 but less than $141.42 O An amount less than $82.70 or a rate greater than $229.36 An amount equal to or greater than $172.16 but less than $229.36
Suppose that you buy a TIPS (inflation-indexed) bond with a 1-year maturity and a coupon of 2% paid annually. Assume you buy the bond at its face value of $1,000, and the inflation rate is 10%. a. What will be your cash flow at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be your real return? c. What will be your nominal return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
You plan to reinvest the coupon interest at 12% rate of return per annum. Calculate the value of the reinvestment, what is the figure will you get at the end of 7th years with your principle.Face value = RM1000Maturity = 6 yearsCoupon = 5%Bond value= RM1020
LOVE A13Ver matures in 8 years; and pays coupons annually with the next coupon Bond A has a coupon rate of 10.18 percent, a yield-to-maturity of 14.22 percent, and a face value of $1,000.00; expected in 1 year. What is (X+Y+Z) if X is the present value of any coupon payments expected to be made in 3 years from today, Y is the present value of any coupon payments expected to be made in 6 years from today, and Z is the present value of any coupon payments expected to be made in 9 years from today? O An amount equal to or greater than $147.11 but less than $176.43 O An amount equal to or greater than $176.43 but less than $230.69 O An amount less than $85.62 or a rate greater than $230.69 An amount equal to or greater than $129.54 but less than $147.11 An amount equal to or greater than $85.62 but less than $129.54
You are considering the purchase of a coupon bond with a face value of $1,000, which matures in 14 years, and pays 4.15% (annual) coupons. If you require a return of 3.50% on this instrument, how much would you offer to pay for it today? [Present the answer rounded to two decimal places, e.g. 1035.16]
D4) About rate of return For a consol that pays $100 annually, if the yield to maturity at the beginning of the year is 10%, and the yield to maturity at the end of the year is 5%, please calculate the return of the consol of this year. If a coupon bond that is going to mature in two years is selling at par. Suppose its coupon rate is 10%, the yield to maturity at the begging of the year is 10%, and the yield to maturity at the end of the year is 5%. Please calculate the return of the coupon bond of this year.
What is the value of a bond that matures in 5 years, has an annual coupon payment of OMR 110, and a par value of OMR 2,000? Assume a required rate of return of 9%.
A two-year maturity floater. Assume annual coupon payment and $1,000 par. Its discount rate is Libor + 2%. The discount rate for fixed cash flows is 2% a. What is the price of this floater if the coupon is Libor + 2%? b. What is the price of this floater if the coupon is Libor + 1%?
Suppose GE plans to issue a note that matures in 2 years and has a 3.67% coupon rate. If the market yield is 4.91%, what is the market price?
Suppose an investor purchases $114,000 of TIPS with a 6.14% coupon rate and 12 years until maturity. How much with the second coupon payment be if the level of CPI adjusts to the levels below? Today 6 months from now 12 months from now 18 months from now 228 246.2 256.1 265.5
Suppose you just purchased a bond (Face Value = $1,000) with 16 years to maturity that pays an annual coupon of $24.00 and is selling at par. Calculate the one-year holding period return for each of these two cases: Required: a. The yield to maturity is 3.90% one year from now. (Do not round intermediate calculations. Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) HPR b. The yield to maturity is 1.70% one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.) HPR %
An investor buys a ($1000 FV) Treasury Strip security with 11 years to maturity at a yield of 5.1%. Two years later the yield to maturity on the strip is 4.0% and the investor decides to sell. What is the compounded annual rate of return on the investment over the investment horizon? For simplicity assume all yields in the question are quoted with annual compounding. Enter your answer as percent to two decimal places, but do not include the % sign.

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