Your firm has a credit rating of A You notice that the credit spread for five-year maturity A debt is 81 basis points (0 81%) Your fem's five-year has semi-annual coupons and a coupon rate of 4% You see that new five-year Government of Canada bonds are being issued with a YTM of 3% What should the price of your outstanding five-year bonds be Assume a par value of $100 The price of your outstanding five-year bonds should be (Round to the nearest cent)

Your firm has a credit rating of A You notice that the credit spread for five-year maturity A debt is 81 basis points (0 81%) Your fem's five-year has semi-annual coupons and a coupon rate of 4% You see that new five-year Government of Canada bonds are being issued with a YTM of 3% What should the price of your outstanding five-year bonds be Assume a par value of $100 The price of your outstanding five-year bonds should be (Round to the nearest cent)

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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Ordinary bonds of CenterPoint Energy Inc. mature in 18 years and pay coupons twice per year. What is today’s quoted price for this CenterPoint Energy bond if the next coupon will be disbursed in exactly six months? Note: the YTM = 9.65% and the CenterPoint Energy bond annual coupon rate is 9.0%. a. $1,183.34 b. $1,706.64 c. $1,761.65 d. $944.99 e. $1,249.94
KroBank issues a zero coupon bond and it has to pay the face value of the bond of $100 M due in exactly five years. Assuming interest rates are currently at 8% p.a., which of the following is the best investment option for the bank to ensure it has enough funds to meet the liability in five years: Invest $100M today in coupon-paying bonds paying 8% p.a. annual coupons with maturity of 7 years (duration is 5.62 years), sell the bonds in year 5. Invest $100M today in coupon-paying bonds paying 8% p.a. annual coupons with maturity of 6 years (duration is 4.99 years), sell the bonds in year 5. Invest $100 M today in coupon-paying bonds paying 8% p.a. annual coupons with maturity of 5 years (duration is 4.31 years). Invest $100 M today in coupon-paying bonds paying 8% p.a. annual coupons with maturity of 8 years (duration is 6.21 years), sell the bonds in year 5.
User You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 14 years. The annual coupon rate is 14.0% and the coupon payments are annual. The bond are currently selling $799.68 based on a yield to maturity of 18%. What is the bond expected capital gain/loss if the bond are held maturity’s ?
Please give me answer very fast in 5 min saur
Assuming annual payments what should Morrison Court bonds be pressed it today Morrison Corbett, six year bonds outstanding that is paying 8.25% coupon rate while investors buy in the bond today on a hill to maturity of 6.875% round to the nearest dollar.
A bank has just issued a 10,000/= par value zero coupon bonds with 10% yield to maturity. The bond is due to mature in 15 years from today (Assume a semiannual compounding) What is the market price of this bond? If Interest rates remain constant what will be the price of the bond in four years If interest rates rise to 12%, what will be the price in four years
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 89 basis points (0.89%). Your firm's five-year has semi-annual coupons and a coupon rate of 6%. You see that new five-year Government of Canada bonds are being issued with a YTM of 3%. What should the price of your outstanding five-year bonds be? Assume a par value of $100. The price of your outstanding five-year bonds should be $ (Round to the nearest cent.)
Yield to Maturity and Call with Semiannual Payments Thatcher Corporation's bonds will mature in 18 years. The bonds have a face value of $1,000 and an 8.5% coupon rate, paid semiannually. The price of the bonds is $950. The bonds are callable in 5 years at a call price of $1,050. What is their yield to maturity? What is their yield to call? Do not round intermediate calculations. Round your answers to two decimal places.
An insurance company is analyzing the following three bonds, each with five years to maturity, annual interest payments, and is using duration as its measure of interest rate risk. What is the duration of each of the three bonds? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. $10,000 par value, coupon rate=9.7%, r 0.17 b. $10,000 par value, coupon rate 11.7%, r= 0.17 c. $10,000 par value, coupon rate = 13.7%, p=0.17 Duration of the bond years
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Assume a par value of $1,000 Caspian Sea plans to issue a 10.00 year, semi-annual pay bond that has a coupon rate of 11.00%. If the yield to maturity for the bond is 11.0%, what wis the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places A bank offers 8.00% on savings accounts. What is the effective annual rate if interest is compounded monthly? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (x: 0092434) G unanswered not submitted Attempts Remaining: Infinity unanswered not submitted Attempts Remaining: Infinity
11

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