Due to a 1% increase in market interest rates, calculate the current price of a 5% coupon, 8-year bond sold at $1,000 par value (assume annual payments) Group of answer choices $1,067.33 $937.90 $1,000
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Due to a 1% increase in market interest rates, calculate the current price of a 5% coupon, 8-year bond sold at $1,000 par value (assume annual payments)
Group of answer choices
$1,067.33
$937.90
$1,000
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- Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?How much will the coupon payments be of a 10-year $5,000 bond with a 5% coupon rate and semiannual payments? A. $500 OB. $250 OC. $125 OD. $42How much will the coupon payments be of a 15-year $10,000 bond with a 6.5% coupon rate and semiannual payments? OA. $325 OB. $1,300 OC. $650 OD. $108 SA
- What is the YTM for a zero coupon bond ($1,000 par) maturing 18 months and 15 days from now selling for $900 today. Use semiannual rate approach. A. 7.19% B. 8.41% C. 6.94% D. 6.53% E. 7.81%Bond Principal ($) Time to Maturity (yrs) 100 0.5 100 1.0 100 1.5 100 2.0 *Half the stated coupon is paid every six months Annual Coupon ($)* 0.0 0.0 6.2 8.0 Bond Price ($) 98 95 101 100 Calculate the 2-year par yield. Enter your answer rounded to four decimal places, skip the % sign. For example, if your calculation results in 0.1234567 %, you only need to enter 0.1235.Based on the information below, what is the current market interest rate? Coupon Current Price Remaining Term Bond A 5% $ 703.11 20 years Bond B 7% $ 932.05 10 years Bond C 11% $ 1,078.63 3 years Bond D 11% $ 1,296.89 20 years Question 16 options: 4% 8% 6% 10%
- Given the following information on a bond, Par value: $1000 Interest rate: 6% Coupon rate: 8% paid semiannually Years to maturity: 15 years, what is the expected price at the end of year 5? Question 7Select one: a. 1145.32 b. 1152.98 c. 1148.77 d. 1141.97 please show math and explanation..What must be the price of a $1,000 bond with a 5.8% coupon rate, annual coupons, and 15 years to maturity if YTM is 10.5% APR? O A. $652.49 OB. $913.49 O C. $521.99 O D. $782.99Zero-Coupon Bonds (ZCBS) with maturity in 1 and 5 years are available on the market. Their redemption value is £100, and they sell for £95 (1-year ZCB) and £88 (5-year ZCB). Find the spot rates corresponding to the ZCBs' prices 11 = Number % 15 = Number % Enter a percentage correct to 2 decimal places Calculate the forward rate 1,5 1,5 Number % Enter a percentage correct to 2 decimal places
- Bond quote Face value ($) Time to maturity (years) Annual coupon payments (paid semi-annually) bond price ($) zero rate 100 0.5 0 98 4.0405% 100 1 0 97 ? 100 1.5 15 115 ? 100 2 20 ? 5.500% Using the Table above, find the appropriate zero rates for1 year find the appropriate zero rates for 1.5 year find the 2-year bond price find the par-yield for the 2-year-maturity bond *Note1: zero rate for the 6 month period is done for you. *Note 2: coupon payments given are yearly coupon payments, which these will be paid out semi-annually (i.e. every 6 months)Bond quote Face value ($) Time to maturity (years) Annual coupon payments (paid semi-annually) bond price ($) zero rate 100 0.5 0 98 4.0405% 100 1 0 97 ? 100 1.5 15 115 ? 100 2 20 ? 5.500% Using the Table above, find the appropriate zero rates for1 year find the appropriate zero rates for 1.5 year find the 2-year bond price find the par-yield for the 2-year-maturity bond *Note1: zero rate for the 6 month period is done for you. *Note 2: coupon payments given are yearly coupon payments, which these will be paid out semi-annually (i.e. every 6 months) When doing calculations in this course, use at least 6 decimal places for accurate answers.What is the yield to maturity of a bond that just paid an annual coupon payment of $50, has 10 years remaining until maturity, a $1,000 par value when priced at a $965? (please show work or how to enter into a BA II plus) a. 4.95 b. 2.72 c. 5.46 d. 5.00 e. 10.57
