Question 12 Below is a list of prices for $1,000-par zero-coupon Treasury securities of various maturities. A 8 % coupon $100 par bond pays a semi-annual coupon and will mature in 1.5 years. What should be the YTM on the bond? Assume semi-annual interest compounding for this question. Enter your answer in decimal form, rounded to 4 decimals. Thus, if your answer is 0.12345678, just enter 0.1235 Maturity (periods) 1 2 3 Price of $1,000 par bond 952.2 855 760.5

Question 12 Below is a list of prices for $1,000-par zero-coupon Treasury securities of various maturities. A 8 % coupon $100 par bond pays a semi-annual coupon and will mature in 1.5 years. What should be the YTM on the bond? Assume semi-annual interest compounding for this question. Enter your answer in decimal form, rounded to 4 decimals. Thus, if your answer is 0.12345678, just enter 0.1235 Maturity (periods) 1 2 3 Price of $1,000 par bond 952.2 855 760.5

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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A bond sells for $866.09 and has a coupon rate of 6.40 percent. If the bond has 14 years until maturity, what is the yield to maturity of the bond? Assume semiannual compounding. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
LOW4486452: The coupon rate is 3.1%, the last trade price is $111.33, and the Maturity date is 05/03/2027 Using the bond LOW4486452, assume that the price does not include accrued interest. Calculate the market price of that bond in dollars and calculate the accrued interest. You will assume that today is the 1st of November. Also, assume that the bond pays interest on the month that the bond matures and 6 months after. Also, assume that the interest is paid on the first of the month no matter the maturity date. For example, suppose a bond matures on 4/8/2042. You will assume that interest is paid on 4/1 and 10/1 Making these assumptions, how much accrued interest would you pay the owner if you bought the bond? What would the total amount be that you paid for the bond?
Calculate the current price of a $1,000 par value bond that has acoupon rate of 8 percent, pays coupon interest annually, has 18years remaining to maturity, and has a current yield to maturity(discount rate) of 11 percent. (Round your answer to 2 decimalplaces and record without dollar sign or commas). Your Answer: Calculate the current price of a $1,000 par value bond that has a coupon rate of 18 percent, pays coupon interest annually, has 15 years remaining to maturity, and has a current yield to maturity (discount rate) of 9 percent. (Round your answer to 2 decimal places and record without dollar sign or commas). Your Answer:
Please help me solve the problem correct
Assume that a corporate bond has a par value of $1,000 and pays coupon payments semiannually. What is the semiannual coupon payment for this bond if the coupon rate is 6.66%? (Round your final answer to two decimal places.)
A 10-year, 6.1-percent coupon bond is selling for 102.0 percent of par. What is the bond's market yield if it makes semi-annual coupon payments? (Round answer to 3 decimal places, e.g. 5.795.) Please show and explain your steps in detail and show how to calculate this on a financial calculator as well.
The following information is to be used in the following two questions: Using the expectations hypothesis, You observe the following bonds trading in the market: . a 1-year zero priced at $925.00 • a two-year 10% coupon bond trading at a par value of $10,000 What is the one-year interest rate (expressed in %)?
A Treasury bond with the longest maturity (30 years) has an ask price quoted at 101.9375. The coupon rate is 4.10 percent, paid semiannually. What is the yield to maturity of this bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Yield to maturity %
(Related to Checkpoint 9.4) (Bond valuation) A bond that matures in 8 years has a $1,000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 16 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? Question content area bottom Part 1 a. The value of this bond if it paid interest annually would be $enter your response here. (Round to the nearest cent.) Part 2 b. The value of this bond if it paid interest semiannually would be $enter your response here. (Round to the nearest cent.)
Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Bond B According to the expectations hypothesis, what is the market's expectation of the yield curve one year from now? Specifically, what are the expected values of next year's yields on bonds with maturities of (a) one year? (b) two years? (c) three years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) с D YTM(%) 5.1% Years to Maturity 1 2 3 6.1 6.6 7.1 YTM (%) % % %
A bond with a maturity of 12 years sells for $1,068. If the coupon rate is 10.2 percent, what is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 6.20 percent, and the bond has a yield to maturity of 5.71 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration

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