Intro A Microsoft and an Oracle bond both have 15 years to maturity, a $1,000 par value, an AA rating and pay interest semiannually. Microsoft has a coupon rate of 6.6%, while Oracle has a coupon rate of 5.6%. The Microsoft bond trades at $894.98. Part 1 What should be the price of the Oracle bond (in $)? 0+ decimals Submit BAttempt 1/10 for 1 pts.
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- Data table ↑ The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100face value of a two-year, zero-coupon, risk-free bond? The price per $100 face value of the two-year, zero-coupon, risk-free bond is $ (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) YTM 1 4.98% 2 5.48% 3 5.78% Print Done 4 5 5.96% 6.09% (Round to the nearest cent.) - XAnalysis and Application of Knowledge Rossiana Marie, Inc. lists a bond as Ross 9s34, and shows the price as selling for 88.875% of its face value. If your required return rate is 10%. would you buy one of these bonds in 2021? * 5 points Your answer Upload Solution: Rossiana Marie, Inc. lists a bond as Ross 9534, and shows 15 points the price as selling for 88.875% of its face value. If your required return rate is 10%, would you buy one of these bonds in 2021? 1 Add file Intal Corporation bonds have a coupon of 14%. pay interest semiannually. Spoints and mature in 7 years. Your required rate of return for such an investment is 10% annually. How much should you pay for a PHP1.000 Intal Corporation bond? Your answer Upload Solution: Intal Corporation bonds have a coupon of 14%. pay 10 points interest semiannually, and mature in 7 years. Your required rate of return for such an investment is 10% annually. How much should you pay for a PHP1.000 Intal Corporation bond?* 1 Add fileF What must be the price of a $2,000 bond with a 5.9% coupon rate, annual coupons, and 25 years to maturity if YTM is 10.2% APR? A. $984.98 B. $1,231.23 OC. $1,723.72 D. $1,477 47 CODE
- a) Determine the price of Bond X if it has 3 years to maturity, a par-value of $2500, a coupon rate of 5% paid annually and the rate of return in the bond market is fixed at 9%: (b) Hence, compute the duration of Bond X from Question 2(a) above. (c) List and explain one type of risk associated with bonds. 164 words 1284 MAR 12 MacBook Air D00 F1 F2 F3 F4 & 2$ 4 6 Q Wpoints You are eyeing an investment in a corporate bond which has a YTM of 11.35%, and a stated rate of interest of 9.91% with a maturity of 100 years. What is the price of this bond? Selected Answer: [None Given] Answers: a. $873.13a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it be if there were only 9 or 8 years to maturity? Use the worksheet to compute the bond issue prices and enter them in the spaces provided. Bond issue price (9 years to maturity) __________________ Bond issue price (8 years to maturity) __________________ b. Compare these prices to the bond-carrying values found in the effective interest amortization schedule you originally printed out in requirement 3. Explain the similarity. c. Click the Chart sheet tab. The chart presented shows the price behavior of this bond based on years to maturity. Explain what effect years to maturity has on bond prices. Check your explanation by trying 8% as the effective rate (cell E10) and clicking the Chart sheet tab again. Also try 9%. When the assignment is complete, close the file without saving it again. Worksheet. Modify the BONDS3 worksheet to accommodate bonds with up to 20-year maturity. Use your new model to determine the issue price and amortization schedules of a 2,000,000, 18-year, 10% bond issued to yield 9%. Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as BONDST. Hint: Expand both amortization schedules to 20 years. Expand the scratch pad to 20 years. Modify FORMULA1 in cell F17 to include the new ranges. Chart. Using the BONDS3 file, prepare a line chart that plots annual interest expense over the 10-year life of this bond under both the straight-line and effective interest methods. No Chart Data Table is needed. Put A23 to A32 in the Label format and then select A23 to A32, D23 to D32, and B40 to B49 as a collection. Enter all appropriate titles, legends, formats, and so forth. Enter your name somewhere on the chart. Save the file again as BONDS3. Print the chart.
- 1 ences The bonds of Generic Labs Inc. have a conversion premium of $60. Their conversion price is $25. The common stock price is $21.00. What is the price of the convertible bond? (Do not round intermediate calculations and round your answer to 2 decimal places.) Mc Graw Hill Convertible bond price Prev 2 of 10 MacBook Air Next >18. Xcel Using a Spreadsheet to Calculate Bond Values: What is the bond quote for a $1,000 face value bond with an 8 percent coupon rate (paid semiannually) and a required return of 7.5 percent if the bond is 6.48574, 8.47148, 10.519, and 14.87875 years from maturity? (LG 6-2) Face Value 100% 100 100 100 Periodic Coupon Payment 6.48574 × 2 = 12.97148%/2 = 4% Total Payments 8.47148 x 2 = 16.94296 10.519 x 2 = 21.0380 14.87875 x 2 = 29.7575 4 4 4 Required Return 7.5% 7.5 7.5 7.5 The Bond Value Will Be 102.531% 103.094 103.594 104.437Academic Portal LIBIS-Sampoerna. Dashboard VitalSource Booksh... Spotify-Web Player Company XYZ's bonds have 12 years remaining to maturity, interest is paid annually, the bonds have $1,000 par value, and the coupon rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?* a. 828.78 b. 968.39 C. 1,000,00 d. 1,075.36 e. none of the above
- #1 The market price of a semi-annual pay bond is $994.42. It has 19.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity %233 To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon rate Coupon 5.400 4.125 ?? % Maturity January 15, 2034 January 15, 2029 January 15, 2031 What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Prev Last Price Last Yield ?? 92.685 ?? 3.84 104.310 4.12 T Estimated $ Volume (000s) 57,362 48,941 43,802 5 of 15 Next >f10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 9%, the maturity risk premium on all 10- ear bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T- Donds, what is the default risk premium on the corporate bond? Select the correct answer. O a. 2.64% O b. 2.16% Oc2.88% d. 2.40% e. 3.12%
