For the fourth discussion question of the quarter, we are going to examine a few bonds and determine which seems like the best investment for us.Information about bond price (assume all have a face value of $1,000), maturity date, coupon rate, analyst ratings, and pay dates will be given. Basedon the description of the bonds provided, I would like for you to discuss which investment was the most appealing to you from the perspective of apotential investor and why you felt that way.As it is likely that there will many different companies chosen by different members of the class, please feel free to discuss and debate with yourcolleagues about areas of agreement and disagreement with your selections for your required follow-up responses.Bond #4$1391.6608/20326.75%BBBLast PriceMaturityCoupon RateAnalyst RatingIndustryPay DatesBond #1$1255.1210/20293.75%AAAPharmaceuticalApr & OctBond #2$1001.1005/20484.00%AAATravel/TourismMay & NovBond #3$801.0001/20350%AAZero Coupon MuniJan & JulAutomobileFeb & AugBond #5$701.0101/20267.00%CCCBrick & Mortar RetailJan & Jul

Bond credit rating:A bond credit rating, sometimes known as a bond rating, is an important…

Last Price Maturity Coupon Rate Analyst Rating Industry Pay Dates Bond #1 $1255.12 10/2029 3.75% AAA Pharmaceutical Apr & Oct Bond #2 $1001.10 05/2048 4.00% AAA Travel/Tourism May & Nov Bond #3 $801.00 01/2035 0% AA Zero Coupon Muni Jan & Jul Bond #4 $1391.66 08/2032 6.75% BBB Automobile Feb & Aug Bond #5 $701.01 01/2026 7.00% CCC Brick & Mortar Retail Jan & Jul

Last Price Maturity Coupon Rate Analyst Rating Industry Pay Dates Bond #1 $1255.12 10/2029 3.75% AAA Pharmaceutical Apr & Oct Bond #2 $1001.10 05/2048 4.00% AAA Travel/Tourism May & Nov Bond #3 $801.00 01/2035 0% AA Zero Coupon Muni Jan & Jul Bond #4 $1391.66 08/2032 6.75% BBB Automobile Feb & Aug Bond #5 $701.01 01/2026 7.00% CCC Brick & Mortar Retail Jan & Jul

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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$1,000 par value zero-coupon bonds (ignore liquidity premiums) Bond Years to Maturity Yield to Maturity 6.00% 7.50% 7.99% ABCDE Multiple Choice O 12345 The expected 2-year interest rate 3 years from now should be O 2 9.55% 11.74% 14.89% 8.49% 10.70% 13.73%
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Cese Window Clck Submit to complete this assessment. Question 20 What is the yield to maturity of an 11 percent semi-annual coupon corporate bond, which matures in 17 years, if the bond is selling for $792.14. O 14.28 O 2.14% O 14.32% O 7.74% O None of the listed items is correct Click Submit to compiete this assessment. MacBook Air 23 388 6. T K D V F. %24
D & R A1 8 - 2 Question 8. Cheapest-to-Deliver Bond Today is July 1. You hold a November Treasury bond futures contract with a price of 92:15 (i.e., 92 plus [15/32]), with a delivery date of November 15 in the same year. You have identified the two bonds below that could be used for delivery against the futures contract: Bond A Bond B Maturity 26.5 years 31 years Coupon rate 5% 8.5% Asking price 93:2 144:13 Coupon dates April 15, October 15 June 15, December 15 Callable? No No Assume that the next year is not a leap year, and that the market repo rate is 5.50%. Identify the cheapest-to-deliver bond.
Problem 7-21 Compute Bond Price (LG7-4) Compute the price of a 5.8 percent coupon bond with 10 years left to maturity and a market interest rate of 9.4 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations and round your final answer to 2 decimal places.) Bond price $ Is this a discount or premium bond? Discount bond Premium bond
| Technology Services | VCU Security Treasury AAA Corporate BBB Corporate B Corporate Consider the following yields to maturity on various one-year, zero-coupon securities: 0.60% The credit spread of the single B corporate bond is closest to 1.10% 1.40% virginiacommonwealth.instructure.com 0.80% 1.60% Yield (%) 5.0 5.2 5.8 6.6 Video Quiz Chapter 6: FIRE 311 Sec Review Video Lecture Part 6.5
Question content area top Part 1 (Related to Checkpoint 9.3) (Bond valuation) Calculate the value of a bond that matures in 19 years and has a $1,000 par value. The annual coupon interest rate is 14 percent and the market's required yield to maturity on a comparable-risk bond is 11 percent. Question content area bottom Part 1 The value of the bond is $enter your response here. (Round to the nearest cent.)
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D & R A1 8 - 1 Question 8. Cheapest-to-Deliver Bond Today is July 1. You hold a November Treasury bond futures contract with a price of 92:15 (i.e., 92 plus [15/32]), with a delivery date of November 15 in the same year. You have identified the two bonds below that could be used for delivery against the futures contract: Bond A Bond B Maturity 26.5 years 31 years Coupon rate 5% 8.5% Asking price 93:2 144:13 Coupon dates April 15, October 15 June 15, December 15 Callable? No No Assume that the next year is not a leap year, and that the market repo rate is 5.50%. Find the conversion factors for Bond A and Bond B. Use the downloadable Excel spreadsheet on the Chicago Mercantile Exchange (CME) website: http://www.cmegroup.com/trading/interest-rates/us-treasury-futures-conversion-factor-lookup-tables.html.
solve this practice problem
Features IBM Coupon Bond AOL Coupon Bond Face value (Par) 1,000 1,000 Coupon Rate9.5% Yield to maturity 7.5% 9.5% Years to maturity 10 20 Price 689.15 Missing information on a bond. Your broker faxed to you the following information about two semiannual couponbonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: Fill in the missing data from the information that the broker sent. What is the price of the IBM coupon bond?
None

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