An investor purchases a zero coupon bond with 15 years to maturity at a price of $434.26. The bond has a par value of What is the implicit interest for the first year? Assume semiannual compounding.
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- Suppose you purchase a zero coupon bond with a face value of $1000, maturing in 20 years, for $213.20. zero coupon bond pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bond's life ?Today an investor purchases a 30-year bond (face value =\$1,000) for $627.73. The bond has a coupon rate of 4% and a yield to maturity of 7%. It pays coupons annually (not semiannually). The investor plans to hold the bond for 1 year. If the yield to maturity of the bond becomes 8% at the end of the year, what is the bond rate of return over the year?An investor purchases a zero coupon bond with 13 years to maturity at a price of $536.47. The bond has a par value of $1,000. What is the implicit interest for the first year? Assume semiannual compounding. Multiple Choice $26.98 $25.07 $26.32 $25.45
- Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timelineA 6.35 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,095.75. What is the yield to call of the bond? (Assume interest payments are semiannual.A bond is priced at $1,100, has 10 years remaining until maturity, and has a 10% coupon, paid semiannually. What is the amount of the next interest payment?
- Suppose the investor sells his bonds before maturity and uses some of the proceeds to purchase a zero-coupon T-Bill with a $100 face value and 6-month maturity. What is the effective annual rate (EAR) if it was purchased for $95.52?You are purchasing a 10-year, zero–coupon bond. The yield to maturity is 8.69 percent and the face value is $1,000. What is the current market price? Assume semiannual compoundingA 6.05 percent coupon bond with 18 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,085.50. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
- You purchase a bond for $825. It pays a semi-annual coupon of 4 percent, and the bond matures after ten years. What is the yield to maturity?Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is the promise yield to maturity?What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to maturity, and a current price of $959? What is the modified duration? Duration is __. years. Modified duration is __ years.