Q1) A Zero-Coupon Bond with maturity in 5 years produces a gross yield of 4.5% p.a. effective and has redemption value of £100. Compute the Zero-Coupon Bond's price £ 数字 Enter a value correct to 2 decimal places Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £81. Calculate the yield to maturity 数字 % Enter a percentage correct to 2 decimal places.

Q1) A Zero-Coupon Bond with maturity in 5 years produces a gross yield of 4.5% p.a. effective and has redemption value of £100. Compute the Zero-Coupon Bond's price £ 数字 Enter a value correct to 2 decimal places Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £81. Calculate the yield to maturity 数字 % Enter a percentage correct to 2 decimal places.

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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es Find the duration of a 6.6% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 6.6%. What is the duration if the yield to maturity is 9.0%? Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answers to 2 decimal places. 6.6% YTM 9% YTM Duration years years
Zero-Coupon Bonds (ZCBS) with maturity in 1 and 5 years are available on the market. Their redemption value is £100, and they sell for £90 (1-year ZCB) and £84 (5-year ZCB). Find the spot rates corresponding to the ZCBs' prices 数字 i1 = % i5 数字 Enter a percentage correct to 2 decimal places % Calculate the forward rate 1,5 i1,5 数字 Enter a percentage correct to 2 decimal places %
K Using the formula given below: F-P P if the market price of a $1,000-face-value discount bond changes from $925 to $950, the yield to maturity decreases by%. (Round your response to two decimal places.) Rbonds =
Q1) A Zero-Coupon Bond with maturity in 15 years produces a gross yield of 2.5% p.a. effective and has redemption value of £100. Compute the Zero-Coupon Bond's price £ Enter a value correct to 2 decimal places Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £87. Calculate the yield to maturity % Enter a percentage correct to 2 decimal places.
A6)
Consider the following two-bond portfolio of option-free bonds; Bond A Bond B Years to maturity 5 years 10 years Coupon rate 5% 5% Par value 1000 1000 Yield to maturity 8% 6% Par amount owned R3,45 million R2 million Market value R30 367.59 (in 000’s) R18 528 (in 000’s) Assuming that Bond A is an option-free bond, calculate the bond’s modified duration using Macauly’s Duration.
Question 2A. A bond has a face value of $2000, a coupon rate of 6% and matures in 10years’ time. If its current yield to maturity is 8% what is the current price ofthe bond? If the yield falls to 4% determine the bond price. What do theseresults indicate about the relationship between the price of a bond and itsyield to maturity? B. You are asked to put a value on a bond which promises eight annual couponpayments of £70 and will repay its face value of £1000 at the end of eightyears. You observe that other similar bonds have yields to maturity of 9 percent. How much is this bond worth? You are offered the bond for a priceof £1030.44. What yield to maturity does this represent? C. Explain in detail the trade-off model of capital structure. In light of the currentglobal financial challenge, discuss which elements of the model areexpected to become most prevalent?
Following information is available in respect of a bond: Face value Rs.100 Market value Rs. 96.48 Coupon rate 8% Yield to maturity 10% Duration 1.92 years Find out Modified duration. If there is a decrease in YTM to 9%, find out the new expected market price.
Assume that there is a freshly-issued coupon-bearing bond with a face value of £10,000, which has four years to maturity and pays an annual coupon rate of 10%. The market prices of zero-coupon bonds with a face value of £100 and different years to maturity are shown below: Time-to-Maturity (in years) 1 2 3 4 Market Price £98.04 £94.26 £88.90 £82.27 The market price of the coupon-bearing bond (rounded to two digits) should be equal to: £11.472.30 £12,512.78 £11,861.71 £12,222.99
(a) A RM100 par value bond with coupons 6% payable semiannually is purchased at RM110 to yield a nominal rate of 4% convertible semiannually. A buyer purchases a similar bond with 3% semiannual coupons at the price, P. Calculate P with the same yield.
Please show working Please answer ALL OF QUESTIONS 1 AND 2 1. A 7% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 7.5219%.a. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent.b. What is the bond's YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answers to two decimal places. 2. Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 18 years to maturity, and a 9% YTM. What is the bond's price? Round your answer to the nearest cent.
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8.00%. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places. a. What is the yield to maturity if the bond is selling for $930? Yield to maturity b. What is the yield to maturity if the bond is selling for $1,000? Yield to maturity % Yield to maturity 8.000 % c. What is the yield to maturity if the bond is selling for $1,135? %

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