The market price of a semi-annual pay bond is $985.76. It has 18.00 years to maturity and a yield to maturity of 7.40%. What is the coupon rate? Submit Answer format: Percentage Round to: 0 decimal places (Example: 9%, % sign required. Will accept decimal format rounded to 2 decimal places (ex: 0.09))

The market price of a semi-annual pay bond is $985.76. It has 18.00 years to maturity and a yield to maturity of 7.40%. What is the coupon rate? Submit Answer format: Percentage Round to: 0 decimal places (Example: 9%, % sign required. Will accept decimal format rounded to 2 decimal places (ex: 0.09))

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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Similar questions

Using the following information, determine the default risk premium on the 10 year AA corporate bond: Rate inflation 1.96 T-bill 5.00 10y T-Bond 10y AAA Corporate 6.46 6.00 10y AA Corporate 7.76 note: your answer should be to 2 decimal places. So, if your answer is 3.253%, for example, then enter 3.25 without the percent sign.
Given the following information on a bond, Par value: $1000 Interest rate: 6% Coupon rate: 8% paid semiannually Years to maturity: 15 years, what is the expected price at the end of year 5? Question 7Select one: a. 1145.32 b. 1152.98 c. 1148.77 d. 1141.97 please show math and explanation..
A 7.35 percent coupon bond with 20 years left to maturity is offered for sale at $1,025.00. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.) Yield to maturity
What is the Macaulay duration of a bond with a coupon of 6.0 percent, twelve years to maturity, and a current price of $1,062.40? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration 8.989 Years 8.537 Years
What is the Macaulay duration of a bond with a coupon of 7.8 percent, eight years to maturity, and a current price of $1,034.50? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration Years Years
A 223.
Given the following spot rates, calculate the value of a 3-year, 6% annual-coupon bond. Spot rates: 1-year: 5% 2-year: 5% 3-year: 6% A. $1,001.56 B. $1,044.73 C. $1,094.56 D. $1,114.29 Clear my choice
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 %
What is the Macaulay duration of a bond with a coupon of 5.4 percent, nine years to maturity, and a current price of $1,055.40? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration 8.046 Years 7.082 Years
A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 7 years at $1,064.47, and currently sell at a price of $1,119.43. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: YTC: % -Select- v % What return should investors expect to earn on these bonds? I. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. II. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. III. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. IV. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM.
What are the Modified Duration and Macaulay Duration of the following bond? Coupon Rate = 8% (Semi-annually paid) YTM = 9% Maturity = 2 Years Par Value = 1,000 (Hint: this question is similar to Example 1 and Example 2 on slides) ModD = 1.886 and MacD = 1.805 ModD = 1.784 and MacD = 1.954 ModD = 1.954 and MacD = 1.784 ModD = 1.805 and MacD = 1.886
Required: Find the convexity of a seven-year maturity, 6.0% coupon bond selling at a yield to maturity of 7.2%. The bond pays its coupons annually. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Convexity

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