# 1 The market price of a semi-annual pay bond is $971.75. It has 15.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

# 1 The market price of a semi-annual pay bond is $971.75. It has 15.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question 12 (5 points) A $1,000 par value, 7.0% annual coupon with a maturity in 13 years currently sells for $ 1,052. What is the bonds current yield? What is the bond's yield to maturity (YTM)? Round your percentages to one decimal place (e.g. 9.4%) Blank # 1 Blank # 2 A/ A/ ব
# 1 Assume a par value of $1,000. Caspian Sea plans to issue a 5.00 year, annual pay bond that has a coupon rate of 3.00%. If the yield to maturity for the bond is 3.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity %23
Consider the following $1,000 par value zero-coupon bonds: Bond Maturity A 1 BU C D Years until Yield to Interest rate 2 3 Maturity (years) 1 2 3 4 Maturity 8.00% 9.00 9.50 10.00 Required: a. According to the expectations hypothesis, what is the market's expectation of the one-year interest rate three years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What are the expected values of next year's yields on bonds with maturities of (a) 1 year; (b) 2 years; (c) 3 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) YTM Check my work % % % %
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# 1 Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay bond that has a coupon rate of 8.17%. If the yield to maturity for the bond is 7.56%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 18.00 year, semi-annual pay bond that has a coupon rate of 7.93%. If the yield to maturity for the bond is 8.13%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not submitted Attempts Remaining: Infinity # 3 Assume a par value of $1,000. Caspian Sea plans to issue a 26.00 year, semi-annual pay bond that has a coupon rate of 16.00%. If the yield to maturity for the bond is 16.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered
L4
A 50.
What is the price of a $1,000 par value semi-annual bond with 22 years to maturity and a coupon rate of 4.8% and a yield-to-maturity of 6.9%? (Round answer to 2 decimal places. Do not round intermediate calculations) K
Market Price What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places. $
# 1 The market price of a semi-annual pay bond is $983.24. It has 15.00 years to maturity and a coupon rate of 5.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.11%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
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