Required: A five-year, 9.0 percent Euroyen bond sells at par. A comparable risk five-year, 10.5 percent yen per dollar dual currency bond pays $843.33 at maturity. It sells for 110,000. What is the implied* per $ exchange rate at maturity? Hint: The dual-currency bond pays 10.5 percent interest on a notional value of £100,000, whereas the par value of the bond is not necessarily equivalent to 100,000. Note: Do not round Intermediate calculations. Round PVIFA and PVIF to 4 decimals. Answer is complete but not entirely correct. Implied exchange rate S) per 192.495

Required: A five-year, 9.0 percent Euroyen bond sells at par. A comparable risk five-year, 10.5 percent yen per dollar dual currency bond pays $843.33 at maturity. It sells for 110,000. What is the implied* per $ exchange rate at maturity? Hint: The dual-currency bond pays 10.5 percent interest on a notional value of £100,000, whereas the par value of the bond is not necessarily equivalent to 100,000. Note: Do not round Intermediate calculations. Round PVIFA and PVIF to 4 decimals. Answer is complete but not entirely correct. Implied exchange rate S) per 192.495

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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Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $859,794.00 $541,670.22 $1,031,752.80 $730,824.90 Based on your calculations and understanding of semiannual coupon bonds, complete the following statements: • Assuming that interest rates remain constant, the T-note’s price is expected to increase or decrease? • The T-note described is selling at a discount, premium or par? .
Please answer all questions what is the price of the bond using a semiannual convention if the maturity is 10 years, 30 years, 50 years and 80 years with explanations Thx .
A 10-year Circular File bond with face value of $1,000 pays interest once a year of $65 and sells for $972. a. What are its coupon rate and yield to maturity? Note: Do not round intermediate calculations. Enter the coupon rate as a whole percent and the yield to maturity as a percent rounded to 2 decimal places. Coupon rate Yield to maturity % % b. If Circular wants to issue a new 10-year bond at face value, what coupon rate must the bond offer? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Coupon rate %
A GH¢5000 callable bond pays interest at j2 9% and matures at par in 20 years. It may be called at the end of years 10 to 15 (inclusive) for GH¢5200. Find the price to yield at least j2 = 8,% until the redemption.
Assume that the yield-to maturity on a straight € fixed-rate bond is 4%. A comparable risk five-year, 5.5 percent euro/dollar dual-currency bond pays $1,500 at maturity per €1,000 of face value. It sells for €1,250. What is the implied $/€ exchange rate at maturity?
An investor wants to find the duration of a(n) 10-year, 6% semiannual pay, noncallable bond that's currently priced in the market at $541.25, to yield 15%. Using a 250 basis point change in yield, find the effective duration of this bond (Hint: use Equation 11.11). The new price of the bond if the market interest rate decreases by 250 basis points (or 2.5%) is $ (Round to the nearest cent.)
(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 19-year, $1,000 par value bonds pay 12 percent interest annually. The market price of the bonds is $920 and the market's required yield to maturity on a comparable-risk bond is 15 percent. a. Compute the bond's yield to maturity b. Determine the value of the bond to you, given your required rate of return c. Should you purchase the bond? RCEDE a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? % (Round to two decimal places.)
# 2 Assume a par value of $1,000. Caspian Sea plans to issue a 8.00 year, semi-annual pay bond that has a coupon rate of 7.97%. If the yield to maturity for the bond is 8.18%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
AT - Bill that is 225 days from maturity is selling for $98, 850. The T. Bill has a face - value of $ 100,000 (LG 5 - 2) Calculate the Discount Yield on the T. Bill. Calculate the Bond Equivalent Yield on the T Bill. Calculate the EAR (Equivalent Annual Return) on the T. Bill. What would the Bond Equivalent Yield be, if all other factors remain the same, but the T. bill has a maturity of 300 days. B
V1
The prices of the three US Treasury zero-coupon bonds that mature in 6, 12 and 18 months are: Time to Maturity 6 months 12 months 18 months Price $1,043.15 $1,112.12 $1,000 $1,032.08 $999 $997.53 $991 What is the price of the 18-month, 2.75% US Treasury coupon bond that pays semi- annual coupons if the face values of all bonds are $1,000?
What is the bond equivalent yield on a $1 million T-bill that currently sells at 96.9 percent of its face value and is 344 days from maturity? (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

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