Calculate the price of a zero-coupon bond with a face value of $2,000 that matures in 8 years if the market interest rate is 7% with semi-annual compounding. (Round the answer to 2 decimal places.) a. $1,124.89 b. $1,089.42 c. $1,056.73 d. $1,145.26

1. Consider a real return bond with a face value of $15,000 and a coupon yield of 5.2%. What is the coupon payment after one year if the inflation rate is 6.8%? Select one: a) $817.44 b) $833.04 c) $825.24 d) $809.64 I

Calculate the price of a zero-coupon bond that matures in 10 years if the market interest rate is 6 percent. (Assume semiannual compounding and $1,000 par value.) A.) $553.68 B.) $558.66 C.) $940.00 D.) $1,000.00

You purchase a 30-year, zero-coupon bond for a price of $15. The bond will pay back $100 after 30 years and make no interim payments. The annual compounded return (geometric average return) on this investment is: OA. 6.2% OB. 7.83 % C. 5.55 % D. 6.53 %

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $88 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. 6% b. 8.8% c. 10.8% Rate of Return % % %

1. A two-year bond with $1,000 face-value and 10% coupon rate is sold for $1,000 today (Year 1).  If one year later (Year 2) the market interest rate decreases by 5%, then this bond will have a market price of $ ____ (round UP the nearest integer) next year (Year 2). 2. Using the one-period valuation model, assuming a year-end dividend of $11.00, an expected sales price of $110, and a required rate of return of 10%, the current price of the stock would be $ ________. 3. Last year you purchased a bond with an interest rate of 5 percent.  Now the interest rate on the bond market drops to 4%.  Then People can use a lower price to buy your bond today. (True or False)

Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Price $983.78 865.89 797.92 732.00 660.24 Required: a. Calculate the forward rate of interest for each year. b. How could you construct a 1-year forward loan beginning in year 3? c. How could you construct a 1-year forward loan beginning in year 4?

The ask yield on a 6% coupon Treasury bond maturing in 8 years is 5.488%. If the face value is $1000, what should be the QUOTED cost of the bond today (use semiannual compounding)? A. 103:03 B. 103:02 C. 103.27 D. 103:79 E. 103.09

ces A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.40% with interest paid annually. If the current market price is $840, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital gain

What must be the price of a $2,000 bond with a 5.8% coupon rate, annual coupons, and 30 years to maturity if YTM is 9.9% APR? O A. $976.40 O B. $1,708.70 OC. $1,464.60 D. $1,220.50