Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- 15. A 6% semi-annual coupon bond has 2 years to maturity. Calculate its price (per 100 of par value) and the yield-to-maturity based on the following spot rates. Time to Maturity (Years) 0.5 1.0 1.5 2.0 Spot Rate 8.2% 8.4% 8.7% 8.9% Discount factor (1+Spot rate/2) 1.041 1.042 1.0435 1.0445arrow_forwardSuppose a 4-year, 3% annual coupon payment bond has the following sequence of spot rates: Time to maturity Spot rates 1 year 0.39% 2 years 1.40% 3 years 2.50% 4 years 3.60% Assume a par value of $100. What is the yield to maturity for this bond? A. 4.52% B. 3.52% C. 5.12% D. 6.12%arrow_forwardA 9.75% coupon bond with 9 years to maturity yields 10%. What is the bond's price two years from today if the yield to maturity is 9.45%? (Assume semiannual interest payments and $1,000 par value) ○ $985.03 $1,014.87 $283.53 ○ $1,015.11arrow_forward
- ort A 16-year bond has a 10 percent annual coupon, a yield to maturity of 5 percent, and a face value of $1,000. What is the price of the bond? $1,511.89 $1,521.89 $1,531.89 $1,541.89 O $1.501.89arrow_forwardWhat is the YTM for a zero coupon bond ($1,000 par) maturing 18 months and 15 days from now selling for $900 today. Use semiannual rate approach. A. 7.19% B. 8.41% C. 6.94% D. 6.53% E. 7.81%arrow_forwardA 10-year semiannual bond’s coupon rate is 6%. Its current market price is $975 and par value is $1,000. What is the effective annual yield of this bond? Group of answer choices 3.1707% 6.3414% 6.4419% 6.8483%arrow_forward
- What is the bond market price with a face value of $1,000 at yield to maturity of 9% for 10 years with a coupon rate of 8%? 0 $835.82 o $935.82 o $422.40 o $513.42 O none Aarrow_forwardMaturity (years) Price 2.83% 5.79% The above table shows the price per $100-face value bond of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero- coupon, risk-free bond shown? 2.85% 12.07% 1 $97.25 2.89% 3 2 $94.53 $91.83 5 4 $89.23 $87.53arrow_forwardA bond has a $1,000 par value, 11 years to maturity, a 12 percent annual coupon, and sells for $890. What is the bond’s yield to maturity (YTM)? a. 14.02% b. 12.00% c. 8.90% d. 14.75% e. 13.48%arrow_forward
- 4. Calculate the Macauley Duration of your Bond at the given Yield-To-Maturity. Bond Pricing Date Annual Coupon Rate Number Coupons per year Maturity Date Yield Par Value Currency Treasury 22-Oct-20 1.625% 2 22-Oct-28 2.00% 1,000,000 GBParrow_forwardWhat is the yield to maturity of a five-year, $5,000 bond with a 4.4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,704? OA: 5.78% B. 6.93% C. 2.89% OD. 8.09%arrow_forward9. A 30-year coupon bond with 10% annual coupons and the yield to maturity is 5%. Assume that the face value is $1,000. What is the bond price? (Hint: use the financial calculator) A) $1,768.62 B) $1,000.00 C) $1,550.59 D) $1472.89 %arrow_forward
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