You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. Allof the bonds have a par value of $1,000 and pay semiannual coupons.Rate??6.3026.168MaturityMonth/YearMay 29May 32May 38Yield to maturityAskedBid103.4625103.5353104.4965 104.6422????In the above table, find the Treasury bond that matures in May 2032. What is your yield to maturity if you buy this bond?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.=Change Ask Yield+.3028 6.019??+.4305+.54184.051%

The yield to maturity of a bond is the average yearly return that an investor would earn if they…

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.302 6.168 Maturity Month/Year May 29 May 32 May 38 Bid 103.4625 104.4965 ?? Yield to maturity Asked 103.5353 % 104.6422 ?? In the above table, find the Treasury bond that matures in May 2032. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Change Ask Yield +.3028 6.019 +.4305 ?? +.5418 4.051

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.302 6.168 Maturity Month/Year May 29 May 32 May 38 Bid 103.4625 104.4965 ?? Yield to maturity Asked 103.5353 % 104.6422 ?? In the above table, find the Treasury bond that matures in May 2032. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Change Ask Yield +.3028 6.019 +.4305 ?? +.5418 4.051

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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You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.252 6.163 Maturity Month/Year May 37 May 40 May 46 Bid 103.4612 104.4952 Yield to maturity Asked 103.5340 % 104.6409 ?? Change +.3015 +.4293 +.5405 In the above table, find the Treasury bond that matures in May 2040. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Ask Yield 5.999 ?? 4.031
Masukh
Consider a bond with maturity 2 year, 100 face value, coupon 3.60%, and yield 7.20%. Compute a dollar duration numerically using a dy =0.001%, Report you result with two digits decimal accuracy and the correct sign. Example:-185.95 Blank Excel Worksheet Your Answer: Answer
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.774 6.218 Maturity Month/Year May 33 May 36 May 42 Bid Asked 103.5483 103.4755 104.5095 104.6552 ?? ?? Yield to maturity In the above table, find the Treasury bond that matures in May 2036. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Change Ask Yield +.3158 6.219 ?? +.4425 +.5548 4.251 % K
Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 2 4 8 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Price (%) 80.22 96.79 135.42 Complete this question by entering your answers in the tabs below. Required A Bond Coupon (%) 2 4 8 Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. YTM % % %
Your client is considering one of the two corporate bonds given below. Both bonds pay semi-annual coupons and are currently trading at the same price of ₵102.35. Characteristic Bond A Bond B Market price ₵102.35 ₵102.35 Maturity 2025 2025 Coupon 15% 18% Yield to maturity 10% 13% Macaulay Duration 4.1 years 3.9 years Call Features Noncallable Callable after 18 months at ₵105.00 Using the information in the table above, estimate the percentage price change and the new price for both bonds if the yield falls by 50 basis Briefly discuss why the actual price changes in the two bonds might differ from your estimates calculated in (i) above if the yields actually fall by 50 basis 3. In each case indicate whether the actual price will be higher or lower than the estimated price and why. (Credit will be given for graphical illustration of concepts)
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Yield to maturity. What is the yield of each of the following bonds, , if interest (coupon) is paid semiannually?
The following data relate to a corporate bond which pays coupons semi-annually: Settlement date 01 March 2009 Maturity date 31 December 2035 Coupon rate 10% Yield to maturity 8% Face value $1,000 Percentage of face value paid back to the investor on maturity 100% Using the above data, calculate: i. The flat price of the bond ii. Accrued interest iii. Invoice price of the bond Note: Show the assumptions, if any, you made in your calculations.
You are given the following information on two traded bonds making semi-annual coupon payments. Bond Face Value Coupon Maturity Price A $1,000 3% 12 years $850.10 B $1,000 10% 12 years $970.00 Calculate Yield to Maturity (YTM) for bonds A and B.
You estimate that the required return on the following Silicone bond is 12.4%. If the bond is being evaluated in the current month of 2023 and matures in the current month of the year indicated, based on this information, how much is the bond over- or under-priced? Bond Silicone Coupon (%) Maturity. 8.00 2029 O Under-priced by $182.44 O Over-priced by $148.19 O Under-priced by $148.19 O Over-priced by $34.25) O Under-priced by $34.25 O Over-priced by $182.44 Last Price (% of par) 96.575
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) Coupon 7.000 7.280 ?? Coupon rate Maturity January 15, 2041 January 15, 2035 January 15, 2037 Last Price Last Yield 94.375 ?? 94.895 4 ?? 6.34 7.16 What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated Volume (000s) 57,378 48,957 43,818

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