The yield to maturity of a one-year, risk-free, zero-coupon bond with a $10,000 face value and a price of $8,063 when released is _%. (round your answer to two decimal places)
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- Q- ramdev A $3,500 bond with a 4% coupon compounded semi-annually is currently priced to yield 8% with 16 years remaining to maturity. What is the yield to maturity six years from now if the bond price rises $225 at that time?8. Consider a 10 year 6.50% annual coupon bond whose duration is 7.50 years when required rate of return (yield to maturity) is 6.50%. Prove that this bond is immunized if you hold it for 7.50 years.8. An effective rate of interest, which is 12.75%, is equivalent to what percent if compounded continuously.
- Q1. coupon bond, with semiannualcoupons, face value of 1,000, 20 years to maturity,$1,197.93 price. Current yield = ?Showing your working out, compute the price of all four bonds: Face Value Maturity (years) Yield Frequency of yield Coupon rate Frequency of coupon Bond 1 £1000 3 3% semi-annual 8% semi-annual Bond 2 £1000 4 3% quarterly 4% semi-annual Bond 3 £100 2 2% monthly 3% quarterly Bond 4 £100 5 3% monthly 4% semi-annualFind the amount needs to be invested if the investors want to receive an annual net income worth 5,400,000 for 7 years. Use the Hoskold's Formula to compute the priceif the money is worth 8% on sinking fund and the yield of interest is 5%. Price =
- 3. You are planning to get a home loan which will pay the cost for your home purchase of 6,000,000 today. You have option A with a de ferred payment optionfrom the developer which will let you start paying 2 years from now over a 15 year period with an interest of 4% compoundedmonthly. How much are you going to have to pay in monthly payments for this plan?1- The six-month and one-year zero rates are both 10% per annum. For a bond that has a life of 18 months and pays a coupon of 8% per annum (with semiannual payments and one having just been made), the yield is 10.4% per annum. What is the bond's price? What is the 18-month zero rate? All rates are quoted with semiannual compounding.Q) General Electric recently sold $1000 bonds maturing in 30 years with an annual yield of 4.125%. After how much time could they be sold for twice their original price? Give your answer in years and months. Solve this Handwriting or typed not in excel. And correctly exolain
- Calculate the annual payouts C to be given for 15 years with an interest rate of 8% on an annuity with a present of value of $150,000. Round your answer to the nearest cent. Do not include the dollar sign in your answer.If the interest rate is 7.0%, what is the present value of a perpetuity paying $210 per year? (A perpetuity is a bond that makes payments forever.) Round to the nearest dollar. Do not use dollar signs or commas in your answer. Example: if the answer is $1,234.56, then write "1235"bond valuation An investor has two nonds in her portfolio, bond C and bond Z. each bond maturres in 4 years has a face value of 1000, and has a yield to maturity of 9.6% bond C pays a 10% annual coupon, while bond Z is a zeo coupon bond . b- assuming that the yield to maturity of each bond remains at9.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity year 4,3,2,1,0 b- plot the time path of price for each bond
