13-year bond with a face value of 2000 dollars earns interest at 9.1 percent convertible semiannually. Suppose that the yield rate is 8 percent convertible semiannually, and that the book value immediately after the 13th coupon payment is 2127.86 dollars. What is the redemption value?

A $5,000 face value strip bond has 12 years remaining until maturity. If the market rate of return is 4.00% compounded semiannually, what is the fair market value of the bond? Your Answer: Answer

A $1,000 par value bond has a current price of $801.36 and a maturity value of $1,000 and matures in 5 years. If interest is paid semiannually and the bond is priced to yield 8%, what is the bond's annual coupon rate? The bond's annual coupon rate is%. (Round to three decimal places.)

Suppose that all bonds have $1,000 of face value. The current prices of zero coupon bonds are as follows: $960 for a one-year bond; $910 for a two-year bond; $850 for a three-year bond. a. What is the price of a three-year bond with 8% annual coupon payment? b. What is the YTM of the two-year zero coupon bond? c. Consider the following two-year bonds: (i) a zero coupon bond as above; (ii) a bond with 6% annual coupon payment. Whose YTM is higher?

Suppose Home Depot issues 30-year bonds on which it pays a 4.00% (nominal) interest rate. Further, suppose that both Home Depot and the purchasers of its bonds anticipate inflation will average 2.00% during the life of the loan. Now suppose the inflation rate after the loan is made (i.e. after the bond is purchased) is actually 1.00% per annum. It follows that the actual real rate of interest is and, ceteris paribus, are (is) better off than anticipated as a result of the difference between the anticipated and the actual rate of inflation. Select one: a. 2.00%, Bondholders b. 2.00%, Home Depot O c. 3.00%, Bondholders d. 3.00%, Home Depot

Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for $1,035.43. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.8% APR, what will be the bond's price?

A bond with 12 years to maturity has an annual interest payment of $65. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places. CY:   ....% YTM:   .....%

Consider the following scenario: A bond has a price of $95 (Par Value 100). It matures in 7 years and pays coupons semi-annually. Find the coupon rate of the bond (in annual terms) that would yield a duration of 5.5.

A 15-year Treasury bond is issued with face value of $1,000, paying interest of $46 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate? (Enter your answer as a percentage rounded to 1 decimal place.) Coupon rate ?%

You own a bond that pays ​$100 in annual​ interest, with a ​$1,000 par value. It matures in 15years. The​ market's required yield to maturity on a​ comparable-risk bond is 11 percent.   a.  Calculate the value of the bond. b.  How does the value change if the yield to maturity on a​ comparable-risk bond​ (i) increases to 16 percent or​ (ii) decreases to 6 percent? c.  Explain the implications of your answers in part b as they relate to interest-rate risk, premium​ bonds, and discount bonds. d.  Assume that the bond matures in 5 years instead of 15 years and recalculate your answers in parts a and b. e.  Explain the implications of your answers in part d as they relate to​ interest-rate risk, premium​ bonds, and discount bonds.