Answered: US T-bills CPI Year Large Stocks LT Gov…

US T-bills CPI Year Large Stocks LT Gov Bonds (Rf asset) (inflation) 2017 21.83% 6.24% 0.80% 2.07% 2018 -5.28% -1.25% 1.81% 2.10% 2019 25.45% 3.35% 2.15% 1.10% 2020 18.16% 10.25% 4.50% 1.88% 100% 700

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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Coupon Yield to maturity Maturity (years) Par Price Bond A 8% 8% 2 5 $100.00 $100.00 $100.00 $104.055 Bond B 9% 8% (a) Calculate the actual price of the bonds for a 100-basis-point (1% annual) increase in interest rates. (b) Using (modified) duration, estimate the price of the bonds for a 100-basis- point (1% annual) increase in interest rates.
QUESTION 1 On January 1, 2009, Bishop Company issued 10% bonds dated January 1, 2009, with a face amount of $20 million. The bonds mature in 2018 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Determine the cash received at issue of the bonds at January 1, 2009. Do not use dollar signs or commas in your answer.
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Problem 14-24 Calculating the Cost of Debt (LO3) Cote Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Price Bond Coupon Rate Quote 1 2 3 4 6.50 % 103.36 8.00 110.68 Maturity 5 years 8 years Face Value $ 45,000,000 40,000,000 7.70 110.03 15.5 years 7.30 102.93 25 years 50,000,000 65,000,000 If the corporate tax rate is 34%, what is the after-tax cost of the company's debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of debt %
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Treasury notes and bonds. Use the information in the following table: . What is the yield to maturity of the February 1996 Treasury bond based on the price in the table? Assume that the bond has a $100,000 par value and makes semiannual coupon payment. What is the current yield of the bond? Why is the current yield higher than the yield to maturity? What is the yield to maturity of the February 1996 Treasury bond? % (Round to three decimal places.)
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