FZero-coupon bond Addison Company will issue a zero-coupon bond this coming month The bond's projected yield is 5% If the par value is $1,000, what is the bond's price using a semiannual conventionna the maturity is 20 yearsb. the maturty is 40 years?c. the matunty is 50 years?d. the matury is 90 years?a. What is the price of the bond using a semiannual convention if the maturity is 20 years?(Round to the nearest cent)

A bond is a kind of debt securities issued by governments and private companies to raise funds from…

Zero-coupon bond Addson Company will issue a zero-coupon bond this coming month The bond's projected yeld K7 a the malurity is 20 years? b. Per is 40 years? che maturity is 50 years What is the price of the bond using a semiannual convention if the maturity is 20 years? (Round to the nearest cent pace is $1,000, what is the bond's price using a semannual convention

Zero-coupon bond Addson Company will issue a zero-coupon bond this coming month The bond's projected yeld K7 a the malurity is 20 years? b. Per is 40 years? che maturity is 50 years What is the price of the bond using a semiannual convention if the maturity is 20 years? (Round to the nearest cent pace is $1,000, what is the bond's price using a semannual convention

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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Zero-coupon bond. Addison Company will issue a zero-coupon bond this coming month. The bond's projected yield is 8%. If the par value is $1,000, what is the bond's price using a semiannual convention if a. the maturity is 15 years? b. the maturity is 35 years? c. the maturity is 70 years? d. the maturity is 100 years?
es A bond with a coupon rate of 8 percent sells at a yield to maturity of 9 percent. If the bond matures in 10 years, what is the Macaulay duration of the bond? What is the modified duration Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Macaulay Modified Duration years years
A 30-year-maturity, 7% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 6% (3% per half-year). What is the yield to call? What is the yield to call if the call price is only $1,050? What is the yield to call if the call price is $1,100 but the bond can be called in two years instead of five years?
A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,175.00. The bond sells for $1,040.50. (Assume that the bond has just been issued.). What is it’s yield to maturity? Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
price a 7% bond that matures in 7.5 years if the (annual) market rate of return (YTM) is 6%? (Remember, the coupons are semi-annual). After pricing the bond, the price suddenly drops to 950. What's the annual YTM?
Zero-coupon bond. Wesley Company will issue a zero-coupon bond this coming month. The projected bond yield is 6%. If the par value is $1,000, what is the bond's price using a semiannual convention if a. the maturity is 20 years? b. the maturity is 30 years? c. the maturity is 50 years? d. the maturity is 100 years? Definition Zero-coupon bond is a bond that pays no coupons over its maturity. Yield: Yield to maturity (YTM) is the return the bond holder receives on the bond if held to maturity. Par value is the principal amount to be repaid at the maturity of the bond. Maturity date is the expiration date of the bond on which the final interest payment is made as well as the principal repayment.
Afive-yearbondhasa$10,000parvalueandpayssemi-annualcouponsof$1,000.The bond’s yield-to-maturity is 8%. 1.(a) How much would you be prepared to pay for the bond? 2.(b) What should the price of the bond be one year from now? 3.(c) If all happens as expected, what rate of return would an investor expect if they buy the bond today and sell it in one year?
Assume the SEP 10-yr T-Note Future just settled at a price of 152-17. The cheapest- to-deliver (CTD) Treasury bond costs 133-12 in the market, has a term of exactly 21 years left and carries a coupon of 4.0%. With respect to settling the Future, which of the following statements is accurate when the above CTD bond is delivered? The Long will pay $116,379 to the Short The Long will pay $134,455 to the Short The Long will pay $176,439 to the Short The Long will pay $137,100 to the Short The Long will pay $151,304 to the Short
Find the face value of the zero-coupon bond. 20-year bond at 6.67%; price $8150 The face value of the zero-coupon bond will be $ (Do not round until the final answer. Then round to the nearest dollar as needed.)
price a 7% bond that matures in 7.5 years if the (annual) market rate of return (YTM) is 6%? (Remember, the coupons are semi-annual). After pricing the bond, the price suddenly drops to 950. What's the annual YTM?
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A bond paying 5% coupons semiannually and YTM of 4.5% and 12 years to maturity. If the last interest payment was made 30 days ago, assuming 364 days a year. What should the dirty price of the bond be?

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