Reconsider the previous illustration of a P1,000 par value bond issued by MERALCO with maturity date of 2041 and a stated coupon rate of 8.5% to be paid semi- annually on January 15 and July 15. On January 1, 2021, the bond had 20 years left to maturity, and the market's required yield to maturity for similar rated debt was 7.5%. What is the value of the bond?

Reconsider the previous illustration of a P1,000 par value bond issued by MERALCO with maturity date of 2041 and a stated coupon rate of 8.5% to be paid semi- annually on January 15 and July 15. On January 1, 2021, the bond had 20 years left to maturity, and the market's required yield to maturity for similar rated debt was 7.5%. What is the value of the bond?

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 a U.S. government bond with as 63% coupon that expires in December 2020.The Par Value of the bond is $1,000. Coupon payments are made semiannually (June 30 and December 31 for this particular bond). On January 1, 2016, the required yield is 5%. What is the current value？ Find the present value (as of January 1, 2016), of a 8% coupon bond with semi- annual payments, and a maturity date of December 2020 if the YTM is 5%. Now assume that the required yield is 11%. How does this change the bond’s price?
Assume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000. How much you will pay for the bond if you purchased the bond today? The answer should be calculated to two decimal places Company Price Robin Hood 88.401 Your Answer: Answer Coupon Rate 6.148 Maturity Date 2-15-2034 YTM Current Yield Rating D
A $15,000 bond with a coupon rate of 4% compounded semi-annually is redeeemable on February 1, 2024. It was purchased on June 13, 2018 when the yield rate was 5% compounded semi-annually. What is the purchase price of the bond?
A bond was issued on July 15, 2020 with a par value of Rp. 1,000,000,000 and will mature on July 15, 2030. If the bond offers a coupon of j2 = 10%, and investors expect a yield of 12%, what is the clean price and how much will sellers receive (dirty price) on March 5, 2023?
The real risk-free rate of interest is 1.57% at the beginning of 2021. Inflation is expected to be 2% in 2021, jump to 4.00% in 2022, and run at 3% in 2023. A maturity risk premium is expected to be 0.37% per year to maturity. A liquidity premium on corporate bonds issued by small companies will continue to be 0.50%, regardless of their maturities. What should the interest rate on a 3-year Treasury security be at the beginning of 2021? Group of answer choices 5.85% 5.31% 5.54% 6.18% 5.68%
This question is based on the following information on a bond: [ Bond Principal: R 5000000 Issue date: 30 June 2021 Maturity date: 15 September 2026 Coupon rate: 7.00% Coupon payment dates: 30 June and 31 December. The bond register closes one month before the coupon payment dates]. Suppose that the bond traded at a market price of R 103.475% for settlement on 10 December 2021 . The number of days from 30 June 2021 to 10 December 2021 is 163 and the number of days from 10 December 2021 to 31 December 2021 is 21 . What is the running yield on the bond? (note: if the answer is 5.55%, answer 5.55). Answer: Answer
A bond that settles on June 7, 2019, matures on July 1, 2039, and may be called at any time after July 1, 2029, at a price of 156. The coupon rate on the bond is 7.2 percent and the price is 169.00. What are the yield to maturity and yield to call on this bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Yield to maturity Yield to call % %
On March 13, 2030, you purchase a $1000 par value corporate bond that has a 12% and makes semiannual payments. The bond last paid a coupon on February 15, 2030 and is due to pay its next coupon on August 15, 2030. Assume that the bond’s day-count convention is the standard one for corporate bonds and note that 2030 is not a leap year. What is the accrued interest on this bond?
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Yield to maturity Coupon 6.60 7.24 ?? % Maturity January 15, 2045 January 15, 2039 January 15, 2041 Last Price Last Yield 94.327 ?? ?? 6.26 94.855 7.08 What is the yield to maturity for the bond issued by Xenon, Incorporated? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated $ Volume (0005) 57,374 48,953 43,814
The current 1-year, 2-year, and 3 year bond interest rates are 4%, 5%, and 6%, respectively. The expectations theory of the term structure predicts that the expected 1-year bond interest rate is ___% next year and _____% the year after.
A treasury Bond that settles on October 18 2019 matures on March 30 2038. the coupon rate is 5.30 percent, and the bond has a 4.45 percent yield to maturity. what are the Macaulay duration and modified duration?
A bond that matures in 1212 years has a $1 comma 0001,000 par value. The annual coupon interest rate is 1414 percent and the market's required yield to maturity on a comparable-risk bond is 1515 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?

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