You hold a 14 year bond that is callable in 4 years. The call premium is one semi-annual coupon payment, and the coupon rate is0.045. The current YTM is 0.105. What is the yield to call? Group of answer choices 0.2170 0.2240 0.2027 0.2304 0.2100
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You hold a 14 year bond that is callable in 4 years. The call premium is one semi-annual coupon payment, and the coupon rate is0.045. The current YTM is 0.105. What is the yield to call?
Group of answer choices
0.2170
0.2240
0.2027
0.2304
0.2100
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- A zera coupon bond with promised payment of $100 to be paid in 5 years has price equal to$80. What is the YTM?Consider a bond with a coupon rate of 14% and coupons paid semiannually. The par value isS1000 and the bond has 7 years to maturity. The yield to maturity is 16%.Required:Find present values based on the payment periodHow many coupon payments are there?What is the semiannual coupon payment?What is the semiannual yield?A n-year annual coupons bond with coupon rate r per year. The yield rate is 0.10. Calculate the Macaulay duration of the bond for all four possible combinations of parameters: • n = 10 or 30 • r = 0.05 or 0.15
- You hold an annual coupon bond for 1 year, receiving the 0.14 coupon before selling. When bought it had 11 years to maturity, and the YTM was 0.08. Over the year, interest rates ROSE by 0.009 What is the total holding period return for this investment? 0.0276 0.0300 0.0291 0.0283 0.0267 [don't give chat gpt answer]You purchased a coupon-bearing bond at $1000 and resold it at $1200 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? OA 0.060 O B. 0.050 OC. 0.200 O D. 0.26Q1. Consider the following par bond (ie coupon rate=yield):Year: 10 and 20 years . Yld 1.50% and 2.0% Q1c. if you hold the 20Y for 1 year, what is your total return from the investment assuming yldcurve does not change ? Hint: your total return comes from coupon collection as well as price appreciation ordepreciation
- Suppose that you buy a TIPS (inflation-indexed) bond with a 1-year maturity and a coupon of 2% paid annually. Assume you buy the bond at its face value of $1,000, and the inflation rate is 10%. a. What will be your cash flow at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be your real return? c. What will be your nominal return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)Consider an 8 - year coupon bond which is selling at par (annual couponpayments) . YTM is currently 6% . What is the price of this bond one yearfrom today if the YTM at that point is 8% (Face value is 100) ?a) 100b) 88.51c) 111.16d) 89.59e) 112.4The answer is D. I just need to see the steps on how to get there.8. You hold a 9 year bond that is callable in 6 years. The call premium is one semi-annual coupon payment, and the coupon rate is0.135. The current YTM is 0.09. What is the yield to call?
- I need assistance with the following: Suppose you have bough the above zero-coupon bond, with value and duration equal to your obligation. Now suppose the rates immediately increase to 9%. What happens to your net position? How much is the tuition obligation? How much is the zero-coupon bond? How much is the net position?Assume a 1,000 face value bond with 20 years left until maturity. If the coupon rate is 10%, paid semi-annually, and the current yield is 8.85%, what should be the yield to maturity on this bond? Show your work. Please show how to solve using a financial calculator. p/y=2 FV=1,000 n=20*2You purchase a 30-year, zero-coupon bond for a price of $15. The bond will pay back $100 after 30 years and make no interim payments. The annual compounded return (geometric average return) on this investment is: OA. 6.2% OB. 7.83 % C. 5.55 % D. 6.53 %
