What is the yield to maturity of a 13 percent semi-annual coupon corporate bond, which matures in 11 years, if the bond is selling for $945.11. O 13.99% O 14.01% O 7.24% None of the listed items is correct 13.80% O 7.00%
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- Moving to another question will save this response. Question 3 What is the yield to maturity of a 13 percent semi-arnuel coupen corporate bond, which matures in 11 years, if the bond is seling for $945.11. O 13.99% O 14.01% O 7.24% O None of the listed items is correct O 1380% O 7.00% AMoving to another question will save this response. MacBook Air %3* F1 F2 F4 F7 24 4 @ #3 % & * 2 3 6 Q E A S D F C V BThe current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100 face value of a two-year, zero-coupon, risk-free bond? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) YTM View an example Get more help - % 5 J 1 5.01% B 6 Y MacBook Pro H 2 5.52% & 7 N Print U J * 8 3 5.78% Done M 1 ( 9 K 4 5.94% < V 20 0 5 6.06% X command V ↓ X Clear all 1 { + = Check answer deleteQuestion A If you buy a bond today at a 90% discount and sell it at a 20% premium in year 12, what is your holding period return per year? Assume that it is a 25-year semi-annual bond and pays coupon of 11%. Answers with excel formulas will be appreciated Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.
- Your company wants to raise $8.5 million by issuing 10-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded APR), what total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is $. (Round to the nearest cent.) View an example Get more help. Ⓒ % 5 G B 6 Y H MacBook Pro N & 7 U J * 8 M K ( 9 * < 0 XE ✪ Clear all ✔ 1 Check answer delete reSuppose tnat ABC bank decides to purchase a T-note and convert it into a STRIP. The T-note has a maturity of 6 years, pays a 6% coupon rate (semiannual) and a face value of $10,000. How many separate securities can be created? O 6O7O 12O13Suppose that you purchase a bond from a company that promises to pay $52.66 in coupon payments for the next 6 years, with a maturity bonus of $152.05 What is the total amount of money that this bond will pay out over its Motime? Round your answer to two (2) decimal places if necessary and do not include a dollar sign Plz do fast
- Start with the partial model in the file Ch04 P24 Build a Model.xlsx onthe textbook’s Web site. A 20-year, 8% semiannual coupon bond with a parvalue of $1,000 may be called in 5 years at a call price of $1,040. The bondsells for $1,100. (Assume that the bond has just been issued.)a. What is the bond’s yield to maturity?Fixed Income Securities4. Today is t = 0. You have just bought a five-year zero-coupon Treasurybond with $100 face value. You paid $80.(a) What is the annually compounded yield to maturity on the bond?(b) Suppose that yields at all maturities decrease to 2% immediately after you havepurchased the bond. Calculate the annualized holding period return if you sellthe bond one year after you have purchased it, at t = 1.(c) What is the annually compounded yield to maturity on the bond at t = 1?A2 8e with inflation rates. may i please have your reply in formula version not excel. thanks:) You have just received an inheritance of $20,000. You wish to invest in fixed income securities such as bonds, which you think are less risky than stocks. After some research, you have narrowed down your choices to the following three fixed income securities: One-year Treasury Bill: Face value of $1000 Yield to maturity of 1.74% Coupon Bond A: Two years to maturityFace value of $1000Coupon rate of 3%, with semi-annual coupon paymentsPrice multiple of face value = 1.0189 Coupon Bond B: Five years to maturityFace value of $1000Coupon rate of 3.5%, with annual coupon paymentsYield to maturity of 2.51% All yields to maturity are compounded semi-annually. Adjusting real interest rate for inflation: (1 + real yield) = (1 + nominal yield) / (1 + inflation rate) One Year Treasury Bill: 1 + real yield = 1.0174 / 1.015 1 + real yield = 1.002365 Real yield = 1.002365 – 1 = .2365% Coupon…
- Kindly solved all 3 parts Q1 a) The market price of a 10-year bond is 979$, its yield to maturity is 8% per year, and annual coupon payments are equal to 979$. The face value of the bond is $t000. Calculate the present value of the bond. Would you buy it? Round your answer to the nearest tenth. b) Boeing recently issued bonds with a maturity of 10 years. The coupon rate is 12% but coupon payments will be paid quarterly. The par value is $1000 and the yield to maturity is equal to 8% compounded quarterly. Calculate the value of the bond today. Round your answer to the nearest tenth. c) Calculate the coupon payment of the bond that has 7 years till maturity, $1000 par value, 6% yield to maturity and it currently sells for $900? Round your answer to the nearest tenth.step by step solution 1) Consider the following zero-coupon yields on default-free securities: Maturity (years) 1 2 3 4 5 Zero-Coupon YTM 4.80% 4.50% 4.20% 4.00% 3.80% What is the price today of a 4-year default-free security with a face value of $1,000 and an annual coupon rate of 6%? Show all your work. 2) The ABC company has a bond outstanding with a face value of $2,000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 5% and that the coupon payments are to be made semi-annually. How much are each of the semi-annual coupon payments? Assuming the appropriate YTM on the ABC company bond is 8.8%, then at what price should this bond trade?Give typing answer with explanation and conclusion If a bond is issued at the price of $10,000 per contract and promises a 5.7% interest every year, the contact will be redeemed by the issuer at a discount after 8 years for $9,200. If the market is offering a return of 4.8% for similar risk securities, what would be the price you are ready to offer for this bond? Question 4 options: $10,590 $10,040 $10,290 $9,740
