Maturity (years)Price1$97.25$94 53591 835$87.53$09 23The above table shows the price per $100 face value of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero-coupon, risk free bond shown?OA. 011%OB 2.00%OC. 144%OD 578 %

Yield to maturity of the 4 year zero coupon bond =(Face value /Current price )^( 1 /Year to…

Maturity (years) Price 2 504 53 $97.25 4 $09 23 5. 537 53 The above table shows the price per $100 face value of sever risk tree, zero-coupon bonds What is the yeild to maturity of the four year, zero-coupon, risk tree bond shown? OA 0.11% OB 2.00 % OC. 144% OD 578% 3. 59183

Maturity (years) Price 2 504 53 $97.25 4 $09 23 5. 537 53 The above table shows the price per $100 face value of sever risk tree, zero-coupon bonds What is the yeild to maturity of the four year, zero-coupon, risk tree bond shown? OA 0.11% OB 2.00 % OC. 144% OD 578% 3. 59183

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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Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 B D E 2 3 4 5 Multiple Choice The expected 1-year interest rate 2 years from now should be 2103% 10.01% 12.56% 7.88% 8.50% 14.59% 9.00% 9.50% 10.50%
bed ok nt ences Problem 3-10 (LG 3-2) Calculate the yield to maturity on the following bonds: a. A 9.4 percent coupon (paid semiannually) bond, with a $1,000 face value and 19 years remaining to maturity. The bond is selling at $965. b. An 8.4 percent coupon (paid quarterly) bond, with a $1.000 face value and 10 years remaining to maturity. The bond is selling at $901. c. An 11.4 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at $1,051. (For all requirements, do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161)) Yield to maturity b. Yield to maturity Yield to maturity a C. % per year % per year % per year
F 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
Answer is either 9.7% or 8.3%
Kindly solve without using excel
What is the yield to maturity of a nine-year, $5,000 bond with a 4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,526? OA. 7.48% B. 5.34% OC. 6.41% D. 2.67%
Prices of zero-coupon bonds reveal the following pattern of forward rates: Year 1 2 3 Forward Rate 8% 11 13 In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $55 with par value $1,000. Required: a. What is the price of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the yield to maturity of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Under the expectations hypothesis, what is the expected realized compound yield of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. If you forecast that the yield curve in 1 year will be flat at 8.0%, what is your forecast for the expected rate of return on the coupon bond for the 1-year holding period? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is not complete. $ 952.95 x a.…
Consider the following $1,000 par value zero-coupon bonds: Bond ABCDE Years to Maturity 1 23WN 4 5 Multiple Choice The expected 1-year interest rate 2 years from now should be. 11.96% 17.14% 9.41% Yield to Maturity 6.40% 19.71% 7.90% 8.40% 8.90% 10.50%
solve MCQs question with proper reason and explanation I'll give you many upvotes
4.
Par Value Coupon Rate Years to Maturity Yield to Maturity Price 5,000.00 11%108% 1,000.005%305% 1,000.0012%510% 1,000.009%59% Bond prices. Price the bonds from the following table with semiannual coupon payments. Find the price for the bond in the following table
Prices of zero-coupon bonds reveal the following pattern of forward rates: Year 1 2 3 Forward Rate 4% 5 6 In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $40 with par value $1,000. Required: a. What is the price of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the yield to maturity of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Under the expectations hypothesis, what is the expected realized compound yield of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. If you forecast that the yield curve in 1 year will be flat at 5.5%, what is your forecast for the expected rate of return on the coupon bond for the 1-year holding period? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Price b. Yield to maturity c.…

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