Find the price of a 2.00% coupon bond with a face value of $10000, a 12% yield tomaturity, and 5 years to maturity. Round your answer to two decimal places. Don't enter the dollar ($) symbol.
Q: Consider the following $1,000 par value zero-coupon bonds: Years to Maturity 1 Bond A B C D 3 Bond B…
A: Here,BondYears to MaturityYTM(%)A16.4%B27.4C37.9D48.4
Q: What is the Macaulay duration of a bond with a coupon of 5.4 percent, nine years to maturity, and a…
A: Coupon rate5.40%Par value$1,000.00Number of years to maturity9Current price$1,055.40
Q: also put 5.56 but its being marked as incorrect
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A: Time = t = 10 YearsRequired Rate of Return = r = 3.75%Face Value = fv = $1000
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Q: Suppose there is a bond with a par value of $1,000 that matures in 6 years. Coupon payments are made…
A: Information Provided: Par value = $1000 Maturity = 6 years Coupon rate = 9% Yield to maturity = 12%
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Q: Hello, How do I calculate this answer without using excel? What is the price you would be willing to…
A: Based on the given conditions, the price you would be willing to pay for a zero-coupon bond with a…
Q: You're given the following data. (Coupons are paid annually.) Coupon Maturity (years) Price…
A: A zero-coupon bond, also known as a discount bond, is a type of bond that does not pay periodic…
Q: What is the value of a $1000 par value bond with a 2% annual coupon if its yield to maturity equal…
A: Information Provided: Par value = $1000 Coupon rate = 2% Yield to maturity = 6% Maturity = 8 years
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Q: Suppose you have 10-year zero-coupon bond, risk free, par value of $1,000, priced to yield 10%.…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
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Q: ou just bought a zero-coupon bond for $155. The bond matures in 9 years and the YTM is 5%. What will…
A: Since there is no change in YTM, the rate of return will be equal to YTM.So, Rate of return =YTM=…
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Q: a. Find the duration of a 7% coupon bond making annual coupon payments if it has three years until…
A: A bond is a kind of debt security issued by the government and private companies for raising funds…
Q: Assume you purchase a 20-year zero coupon bond with a yield of 5%. One year later the yield drops 50…
A: A zero coupon bond is a type of bond that does not make periodic interest payments to the…
Q: You find a bond with 20 years until maturity that has a coupon rate of 5.0 percent and a yield to…
A: Years to maturity = 20 years Yield to maturity = 4.9% Coupon rate = 5% Par value = $1000
Q: Suppose the current yield on a one-year zero-coupon bond is 4%, while the yield on a five-year…
A: Given information:Current yield on one year zero coupon bond (R1) is 4%,Current yield on five year…
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Q: Required: a. Find the duration of a 7% coupon bond making annual coupon payments if it has three…
A: Duration= Sum of (Year * Cash flow * Pvf) / Sum of (Cash flow * Pvf)Pvf@i = 1/(1+i)^ni= interest…
Q: A 6.60 percent coupon bond with 15 years left to maturity is priced to offer a 5.3 percent yield to…
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- NikulSuppose you are buying shares of a discount bond that currently cost $10 each. You have $100 of equity and can borrow at 0% interest. Assume the leverage ratio is defined as debt/equity. If your leverage ratio is 4, what is the lowest price the bond can fall to before you become insolvent? Enter your answer as numbers, not words. Round to the nearest cent if needed and do not put a dollar sign in your answer. Lowest price at leverage ratio of 4 =$ Suppose that your leverage ratio is 9 instead of 4. Given this, what is the lowest price the bond can fall to before you become insolvent? Enter your answer as numbers, not words. Round to the nearest cent if needed and do not put a dollar sign in your answer. Lowest price at leverage ratio of 9 = $ Which leverage ratio is associated with a higher risk of insolvency? Enter the number 4 if you think insolvency risk is higher when leverage is 4; enter the number 9 if you think insolvency risk is higher when leverage is 9. Higher insolvency risk…An insurance company must make payments to a customer of $10 million in one year and $5 million in five years. The yield curve is flat at 10%. Required: a. If it wants to fully fund and immunize its obligation to this customer with a single issue of a zero-coupon bond, what maturity bond must it purchase? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What must be the face value and market value of that zero-coupon bond? Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. a. Maturity of zero coupon bond b. Face value b. Market value years million million
- If possible, please calculate using excel and show formulas. The spot interest rates in the following downward-sloping term structure are: r1 = 4.6%, r2 = 4.4%, r3 = 4.2%, and r4 = 4.0%, r5=2%. Assume face value is $1,000. Calculate bond prices of a 5% coupon bond.The market price of a bond is $825.60, it has 15 years to maturity, a $1000 face value, and pays an annual coupon of $80. What is the yield to maturity? Please do not use Excel. I need help inputting this in my TI-84 Plus CE calculatorA 6.45 percent coupon bond with 24 years left to maturity is priced to offer a 5.7 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.2 percent. What would be the total return of the bond in dollars? (Assume interest payments are semiannual.) (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. Total return $ 2.64 × What would be the total return of the bond in percent? (Assume interest payments are semiannual.) (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. Total return 0.14%
- You buy a 20-year bond with a coupon rate of 9.6% that has a yield to maturity of 10,5% (Assume a face value of $1,000 and semiannual coupon payments) Six months later, the yield to maturity is 11,5%. What is your return over the 6 months? Note: Do not round mediate calculations. Enter your answer as a percent rounded to 2 decimal places, Negative amount should be indicated by a minus sign.You buy a 20-year bond with a coupon rate of 9.2% that has a yield to maturity of 10.7%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 11.7%. What is your return over the 6 months? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.Consider a long-term, zero coupon bond that has a face value of $100,000 and matures in thirteen years. If you require a return of 4.52%, what are you willing to pay for the instrument today? $56,286.96 $53,852.81 $95,675.47 $177,661.05
- 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 %Assume you have a bond with a face value of 100 and a coupon rate of 2%. The current market price is 98.2. Would the yield to maturity increase or decrease if the price rises? Please explain why?help