Henry is planning to purchase a Treasury bond with a coupon rate of 2.26% and face value of $100. The maturity date of the bond is 15 March 2033. (a) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.11% p.a. compounded half-yearly. a. 90.8752 O b. 92.0025 O c. 92.0040 ○ d. 92.2883

Henry is planning to purchase a Treasury bond with a coupon rate of 2.26% and face value of $100. The maturity date of the bond is 15 March 2033. (a) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.11% p.a. compounded half-yearly. a. 90.8752 O b. 92.0025 O c. 92.0040 ○ d. 92.2883

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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Angelo purchased a 7% annual coupon bond one year ago for $987. At the time of purchase, the bond had six years to maturity. Over the past year inflation has been 3.2%. The market required return on this bond today is 8%. If Angelo sells the bond today at the market price, what real rate of return will he realize on this investment? -1.16% 1.13% 4.36% 4.33% 1.17%
Iolanda purchased a Treasury bond with a coupon rate of 4.59% and face value of $100. The maturity date of the bond is 15 April 2029. (a) Luciana plans to purchase Iolanda's Treasury bond on 12 April 2018. What price will Luciana pay (rounded to four decimal places)? Assume a yield of 2.54% p.a. compounded half-yearly. a. 119.5663 b. 119.5414 c. 119.5404 d. 118.7648
Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of j2 = 1.69% p.a. and a face value of $100. This corporate bond matures at par. Its maturity date is 1 January, 2025. The yield rate is assumed to be j2 = 10.9% p.a. Assume that this corporate bond has a 6% chance of default in any six-month period during its term. Assume, also, that, if default occurs, Georg will receive no further payments at all. Calculate Georg's purchase price. Round your answer to three decimal places. Answer a. $59.319 b. $81.541 c. $80.092 d. $53.631
Consider an investor who, on January 1, 2XX1, purchases a TIPS bond with an original principal of $174,000, an 9 percent annual coupon rate, and 17 years to maturity.If the semiannual inflation rate during the first six months is 0.5 percent and the semiannual inflation rate for the second six-month period is 1.7 percent, calculate the coupon payment to the investor for the second six-month period. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
am. 123.
You bought a newly issued 10-year, $1,000 par value, 5.50% coupon bond (with semiannual coupon payments) on May 1, 2023. You decided to check the value and yields on the bond annually, so that you can keep track of your wealth. Your first check was to be done on May 1, 2024. On April 15, 2024, the yield to maturity for the bond changed to 5.20%. For your two year anniversary of owning the bond (May 1, 2025), calculate the bond's total yield for the second year of ownership
You buy an 8-year, 3.30% annual - payment coupon bond priced to yield 5.30 %. You sell the bond at year - end, immediately after receiving the first coupon payment. Assuming the YTM stayed constant over the holding period, what are your capital gains from the sale of the bond? A. -0.09 B. -0.02 C. 0.02 D. 0.09
Consider a $100 face value 10-year bond with 8% semiannual coupons, and redemption value$120. The yield rate convertible semiannually is 6%, and the first coupon is paid on July 1st, 2018. Findthe price on November 15th, 2021.
Give me answer
You have decided to invest in Corporate bonds. Your first bond investment (on Jan 2, 2021) is par value $1,000 DEF corporation bond, with a remaining maturity of 5 years, interest is paid semi-annual, the coupon rate is 4% (annual rate) and the effective market interest is 3% (annual rate). Calculate the amount you paid for the DEF bond on January 2, 2021 Calculate the amount of interest you will receive each year from the invest. How much cash will you receive at maturity for the bond?
Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of j2 = 1.8% p.a. and a face value of $100. This corporate bond matures at par. Its maturity date is 1 January, 2025. The yield rate is assumed to be j2 = 11.9% p.a. Assume that this corporate bond has a 5% chance of default in any six-month period during its term. Assume, also, that, if default occurs, Georg will receive no further payments at all. Calculate Georg's purchase price. Round your answer to three decimal places. O a. O b. $79.790 O c. $61.241 O d. $55.718 a. $78.509
Alex purchased a 10-year, zero-coupon bond today with a yield to maturity of 7.5% and face value of $1,000. One year later, if the yield to maturity decreases to 6%, what will the price of the bond be 1 year later? Group of answer choices A. $591.90 D. $1,060.00 E. $943.40 C. $485.19 B. $558.39

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