D3 Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of j2 = 6.96% p.a. and a face value of $100. This corporate bond matures at par. Its maturity date is 1 January, 2025. The yield rate is assumed to be j2 = 2.2% p.a. Assume that this corporate bond has a 11% chance of default in any six-month period during its term. Assume, also, that, if default occurs, Georg will receive no further payments at all. Calculate Georg's purchase price. Round your answer to three decimal places.
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- Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of j₂ = 6.09% p.a. and a face value of $100. This corporate bond matures at par. Its maturity date is 1 January, 2025. The yield rate is assumed to be j2 = 4% p.a. Assume that this corporate bond has a 5% chance of default in any six-month period during its term. Assume, also, that, if default occurs, Georg will receive no further payments at all. Calculate Georg's purchase price. Round your answer to three decimal places. a. $105.413 O b. $79.625 O c. $104.208 O d. $82.447Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of j2 = 1.69% p.a. and a face value of $100. This corporate bond matures at par. Its maturity date is 1 January, 2025. The yield rate is assumed to be j2 = 10.9% p.a. Assume that this corporate bond has a 6% chance of default in any six-month period during its term. Assume, also, that, if default occurs, Georg will receive no further payments at all. Calculate Georg's purchase price. Round your answer to three decimal places. Answer a. $59.319 b. $81.541 c. $80.092 d. $53.631Do all 3 parts Its 1 July 2020. Greg is planning to purchase a corporate bond with a coupon rate of j2 = 1.68% p.a. and face value of 1000. This corporate bond matures at par. The maturity date is 1 July 2022. The yield rate is assumed to be j2 = 6.15% p.a. Assume that this corporate bond has a 3.69% chance of default in the first six-month period (i.e., from 1 July 2020 to 31 December 2020) and this corporate bond has a 3.01% chance of default in any six-month period during the term of the bond except the first six-month (i.e., 3.01% chance of default in any six-month from 1 January 2021 to 1 July 2022). Assume also that, if default occurs, Greg will receive no further payments at all. Australian bonds (a) What is the expected coupon payment on 1 January 2021? a. 7.8487 b. 8.1472 c. 8.0900 d. 7.8465 (b) What is the expected coupon payment on 1 January 2022? a. 6.9494 b. 7.8465 c. 7.6103 d. 7.5570 (c) Calculate the purchase price of this corporate bond. Round your answer to…
- Question A .Today is 1 July 2021, William plans to purchase a corporate bond with a coupon rate of j2 = 3.65% p.a. and face value of 100. This corporate bond matures at par. The maturity date is 1 January 2024. The yield rate is assumed to be j2 = 4.5% p.a. Assume that this corporate bond has a 9.6% chance of default in any six-month period during the term of the bond. Assume also that, if default occurs, William will receive no further payments at all. Calculate the purchase price for 1 unit of this corporate bond. Round your answer to three decimal places. a. 99.016 b. 97.191 c. 55.030 d. 60.418 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 lineA $11,000 bond with a coupon rate of 5.35% is redeemable on July 01, 2031. It is purchased on February 10, 2025 when the yield rate is 5.85% compounded semi- annually. Please include a well-labelled timeline diagram. a. What is the purchase price of the bond? Round to the nearest cent b. What is the amount of discount or premium on the bond?On January 1, 2024 you buy a 30-year Treasury bond for $930 with exactly 30 years until maturity. This $1000 par value bond has a coupon rate of 5% and makes semiannual coupon payments. What is the current yield on this bond? a. 2.74% b. 5.38% c. 6.54% d. 5.47% e. 3.32%
- A $18,000 face value bond matures on August 3, 2024, and carries a coupon of 6.55%. It is sold on February 3, 2009, for $20,557.32. Determine the yield to maturity?A bank has issued a bond on April 1st 2020 which pays coupons at a rate of 3% of the nominal value twice a year in arrears. Coupon payments are due on 1st April and Ist October and the bond is redeemable at 110% of nominal on Ist September 2030. (a) An investor purchases the bond on 1st March 2021. Show that the price of the bond is approximately £76 per £100 nominal assuming a gross redemption yield of 7%. (b) The investor pays income tax at 40%. In addition, assume that the inflation rate is constant at 1.5%. Calculate the investor's net real rate of return assuming she holds the bond until maturity. State any approximations made.On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 5.6s34" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 6.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices a. $883.78 b. $889.60 c. $885.22 d. $886.60 e. $887.12
- On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 8.2s45" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 7.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices $1,029.11 $1,034.52 $1,033.68 $1,030.95 $1,032.06To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 5.400 4.125 ?? a. Price b. Current yield Maturity January 15, 2034 January 15, 2029 January 15, 2031 % Last Price Last Yield 92.685 ?? 3.84 ?? 104.310 4.12 Estimated $ Volume (000s) 57,362 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 48,941 43,802To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 5.400 4.125 ?? Yield to maturity Maturity January 15, 2034 January 15, 2029 January 15, 2031 % Last Price Last Yield 92.685 ?? ?? 3.84 104.310 4.12 What is the yield to maturity for the bond issued by Xenon, Incorporated? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated $ Volume (000s) 57,362 48,941 43,802