Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding.Note: Round your answers to 2 decimal places.PriceMaturity(years)Bond-EquivalentYield to Maturity$547.5010.00%$450.0015.00%$600.0010.00%$372.918.0011.60 %15.003.10 %$523.907.60%

Step 1: Calculation of Yield to Maturity Face Value = fv = $1000Current Price of bond = pv =…

Answered: Fill in the table below for 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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Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. Note: Round your answers to 2 decimal places. $ GA $ $ $ $ Price 450.00 500.00 450.00 360.33 456.97 Maturity (years) 10.00 20.00 20.00 10.00 15.00 Bond-Equivalent Yield to Maturity % % % 11.50 % 10.20 % 6.80 %
Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. (Round your answers to 2 decimal places.) Maturity (years) Bond-Equivalent Yield to Maturity Price $ 495.00 10.00 % $ 510.00 15.00 % $ 530.00 10.00 % 17.00 7.90 % 12.00 10.40 % 2$ 623.35 8.00 %
Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. (Round your answers to 2 decimal places.) Price Maturity (years) Bond-Equivalent Yield to Maturity $ 575.00 10.00 % $ 500.00 10.00 % $ 610.00 20.00 % 12.00 6.80 % 10.00 6.80 % $ 567.97 3.90 %
Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) Price (%) 3 86.50 5. 105.50 9. 136.50 a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Bond Coupon (%) YTM 3. % 9. % b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond Coupon (%) Duration years years 9. years
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value): Maturity (years) Price (per $100 face value) 1 $96.32 a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? a. Compute the yield to maturity for each bond. The yield on the 1-year bond is %. (Round to two decimal places.) 2 $91.93 3 $87.36 4 5 $82.57 $77.42
Vijay
The following table shows some data for three bonds. In each case, the bond has a coupon of zero. The face value of each bond is $1,000. Bond Price Maturity (Years) Yield to Maturity A $ 230 20 B с 230 17 10% 9 What is the yield to maturity of bond A? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Assume annual compounding. What is the maturity of B? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Assume annual compounding. What is the price of C? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Assume annual compounding.
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Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 2 Price (%) 48 80.57 97.19 134.92 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Bond Coupon YTM (%) 2 4 6.00 % 7.42% 8 7.01 %
Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100 Bond Coupon (X) Price X) 89.00 10.00 139.00 10 o. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your enswers es a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Bond Coupon (%) YIM 434 % 4.04 O% 5.10 O% 10 b. What is the duration of each bond? (Do not round intermediete celculations. Round your enswers to 2 decimal places.) Answer is complete but not entirely correct. Bond Duration Coupon () 873 years 3. 817 years 10 7.19 Cyears
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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?

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