The Nemesis Project's bonds currently sell for $1,075 and have a par value of $1,000. They pay a $80.00 annual coupon and have a 20 year maturity. What is their yield to maturity? (Ch. 7) Group of answer choices 8.16% 6.40% 7.28% -0.36% 8.37%
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The Nemesis Project's bonds currently sell for $1,075 and have a par value of $1,000. They pay a $80.00 annual coupon and have a 20 year maturity. What is their yield to maturity? (Ch. 7)
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- Company Z's bonds currently sell for $1,150 and have a par value of $1,000. They pay a $90.00 annual coupon and have a 20 year maturity. What is their yield to maturity? Group of answer choices 8.65% 7.53% 9.28% 0.00% 6.62%Tyrant Co's bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105.00 annual coupon and have a 20 year maturity, but they can be called in 5 years at $1,120. What is their yield to call? (Ch. 7) Group of answer choices 8.59% 8.03% 7.23% 8.80% 6.20%Company Z is considering the purchase of a 20 year non-callable bond with a coupon rate of 6.70%. The bond has a face value of $1,000 and it makes SEMIANNUAL coupon payments. If the required yield to maturity on this investment is 8.20%, what is the maximum price that should be paid for this bond today? Group of answer choices $725.68 $530.82 $811.05 $887.89 $853.74
- Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Required: a. Calculate the forward rate of interest for each year. b. How could you construct a 1-year forward loan beginning in year 3? c. How could you construct a 1-year forward loan beginning in year 4? Required A Price $940.93 Complete this question by entering your answers in the tabs below. 868.39 800.92 735.40 670.48 Required B Maturity (years) 2 3 Calculate the forward rate of interest for each year. Note: Round your answers to 2 decimal places. Required C Forward Rate % % Prov 12 of 12 NextA bond that pays interest semiannually has a price of $965.18 and a semiannual coupon payment of $29.00. If the par value is $1,000, what is the current yield? O 5.80% O 3.00% O 5.71% O 6.01% A Moving to another question will save this response. Question 16 of 30> >6. The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate of 9%. The other was issued 5 years ago at a coupon rate of 9%. Both bonds were originally issued with terms of 30 years and face values of $1,000. The going interest rate is 14% today. a. What are the prices of the two bonds at this time? b. Discuss the result of part (a) in terms of risk in investing in bonds.
- The market price of a bond is $825.60, it has 15 years to maturity, a $1000 face value, and pays an annual coupon of $80. What is the yield to maturity? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с d e 10.34% 14.00% 16.24% 19.31% 19.95%Consider a bond with a current value of $928.01. It is a 10-year, $1,000 bond, coupons paid semi-annually, and has a 7% coupon rate. a. The bond's yield to maturity (YTM) is: b. What will be its value (per $1,000 of face) if its YTM changes to 10%? Question content area bottom Part 1 a. The YTM is enter your response here%. (Round to two decimal places.) b. Value (per $1,000 of face): $enter your response here. (Round to the nearest cent.)You observe the following term structure: Effective Annual YTM 1-year zero-coupon bond 2-year zero-coupon bond 3-year zero-coupon bond 4-year zero-coupon bond 8.1% 8.2 8.3 8.4 a. If you believe that the term structure next year will be the same as today's, calculate the return on (i) the 1-year zero and (1i) the 4-year zero. (Do not round intermediate calculations. Round your answers to 1 decimal place.) One year return on 1-year bond One year return on 4-year bonds % % b. Which bond provides a greater expected 1-year return? O 1-year zero-coupon bond O 4-year zero-coupon bond
- You are given the following spot rates: s1 = 6%, s2 = 7%, s3 = 8%.Calculate the YTM for a 3 year bond that sells for the present value of its cash flows. The bond has 6% coupons that are paid annually and is redeemed for its $1,000 par value. Answer Choices: a) 7.12% b) 7.50% c) 7.76% d) 7.92%Please include the excel formula You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Input area: Settlement date 1/1/2020 Maturity date 1/1/2044 Coupon rate 0.00% Coupons per year 2 Redemption value (% of par) 100 Yield to maturity 4.20% Par value $10,000 (Use cells A6 to B12 from the given information to complete this question. You must use the built-in Excel function to answer this question. Leave the “Basis” input blank in the function. You may enter a constant as a hard coded value.) Output area: Price (% of par) PriceClaire Redfield is considering the purchase of a 20 year non-callable bond with a coupon rate of 8.50%. The bond has a face value of $1,000 and it makes SEMIANNUAL coupon payments. If the required yield to maturity on this investment is 7.20%, what is the maximum price that should be paid for this bond today? (Ch. 7) Group of answer choices $966.18 $1,079.85 $692.28 $1,136.68 $1,182.15