What must be the price of a $10,000 bond with a 6.2% coupon rate, semiannual coupons, and five years to maturity if it has a yield to maturity of 10% APR?
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- F What must be the price of a $2,000 bond with a 5.9% coupon rate, annual coupons, and 25 years to maturity if YTM is 10.2% APR? A. $984.98 B. $1,231.23 OC. $1,723.72 D. $1,477 47 CODEQuestion 6 What would be the price (to the nearest $ of a $ 1,000 5-year bond with a coupon rate of 6%, if the required yield was 8%? A $900 B $920 C $904 D $1000Q24 A bond OMR 100 face value, 10 years to maturity, 4% annual coupon rate, and a annual required rate of return of 8%. What is the coupon payment amount of the Bond; assume that coupons are compounded monthly? a. OMR 2.000 b. OMR 1.000 c. OMR 0.333 d. OMR 4.000
- A2 9 b 9. Answer the following questions on bond valuation and duration. b. Calculate the duration of a coupon bond with the following features. What general conclusion can we make about the duration of coupon bonds relative to their time to maturity? Face value of $1000 Five years to maturity Coupon rate of 11%, paid semi-annually Current price of $970 (Hint: The effective annual yield should be 12.1604%.)QUESTION 3 The market price of a bond is $1,119.90; it has 4 years to maturity, a $1,000 par value, and pays a coupon of $100 every year. What is the yield to maturity? (assume the coupons are paid annually). A. 3.27% B. 6.50% C. 6.54% D. 10.00% E. None of the aboveHW#3 Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 8 years to maturity. What is the bond’s yield to maturity? A 10-year, 7% coupon bond with a face value of $1,000 is currently selling for $871.65. Compute your rate of return if you sell the bond next year for $880.10. Consider the decision to purchase either a 5-year corporate bond or a 5-year municipal bond. The corporate bond is a 12% annual coupon bond with a par value of $1,000. It is currently yielding 5%. The municipal bond has an 8.5% annual coupon and a par value of $1,000. It is currently yielding 7%. Which of the two bonds would be more beneficial to you? Assume that your marginal tax rate is 35%. Calculate the duration of a $1,000 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%. Consider the bond in the previous question. Calculate the expected price change if interest rates drop to 6.75% using the…
- QUESTION 15 Suppose that all investors expect that the interest rates for the 4 years will be as follows. What is the price of a 3-year zero coupon bond with par-$1,000? Year 1-Year Forward rate 4.6% 2 4.9% 3 5.2% 4 5.5% O a. $1,000.00 Ob. $866.32 Oc. $858.92 Od. $821.15What must be the price of a $2,000 bond with a 5.8% coupon rate, annual coupons, and 30 years to maturity if YTM is 9.9% APR? O A. $976.40 В. $1,708.70 С. $1,464.60 D. $1,220.50A2 9c with info from b. May I please have it in formula version and not excel. thx:) Answer the following questions on bond valuation and duration. 9. Answer the following questions on bond valuation and duration. part b info: Face value of $1000 Five years to maturity Coupon rate of 11%, paid semi-annually Current price of $970 (Hint: The effective annual yield should be 12.1604%.) part b information Macaulay Duration=[(t1 X FV)(C)/(m X PV)(1+Y)T]+...+[(tn X FV)(C)/(mXPV)(1+YTM/m)mtn X (tnXFV)/(PV) (1+YTM/m)mtn.Macaulay Duration=[(t1 X FV)(C)/(m X PV)(1+Y)T]+...+[(tn X FV)(C)/(mXPV)(1+YTM/m)mtn X (tnXFV)/(PV) (1+YTM/m)mtn. T = Total time = 5; C = Coupon payment = 1,000 X (0.11/2) = $55; Y = Yield = 12.1604%/2 = 0.0607; N = No. of periods = 2; M = Maturity = 5 years; and Bond Price = $970. Macaulay Duration = [(0.5 X $1,000) ($55)/(5 X $670)(1+0.0607)2X0.5]+ [(1 X $1,000)…
- Q8- What is the current price of bond paying an 12% annual coupon, and a face value of $10,000 with 9 years to maturity if discount rate is 9%. Select one: A. $11,798.57 В. $13,798.57 C. $10,798.57 D. $12,798.57 Е. $14,798.57QUESTION 2 Consider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the yield to maturity of the bond? A. 30% B. 0% C. 35.4% D. 100.2%17. There is a $1000 bond with 1 year to maturity, a 10% coupon rate, semiannual coupons, and a yield-to- maturity of 12% (APR). What is the price one should expect to pay? A. $1000 B. $981.67 C. 8937.5 D. $895.19