Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Calculate the prices of the following bonds. Assume the face value in each case is $1 000. c)A 12% p.a. coupon rate, 20 years to maturity and a yield of 10% p.a.arrow_forwardCalculate the yield on the following bonds: A. Cost $1,000, semiannual coupon payment 3%. Since 3% is semiannual, then double it to get 6% annual yield. Always calculate yield in terms of annual percentage. B. Cost $950, semiannual coupon payment 3%. Since 3% is semiannual, then double it to get 6% annual yield. Always calculate yield in terms of annual percentage.arrow_forwardD4) Suppose that there is 30-year coupon bond with par value of $100 and Macaulay duration of 20.56. The coupon rate is unknown. Currently, the bond is traded at $90 and the yield is flat at 20% pa. Yield to maturity is an annualized simple interest rate compounded annually. If the bond yield increases by 50 basis points, what is the approximation of the percentage capital gain or loss? Please choose the correct range for the percentage capital gain/loss, i.e., if it is -3.5%, please select “A value between -3% and -4%” A value between -9% and -10% A value between -8% and -9% None of the other answers are correct. A value between -7% and -8% A value between -10% and -11%arrow_forward
- 4) A 10 year bond with $50, 000 face value has semiannual coupon rate 4% and semiannual yield rate 2%. Fill out the following amortization table. Principle Outstanding t Payment Interest герaid Balance 1 2 3 12arrow_forwardCalculate the prices of the following bonds. Assume the face value in each case is $1 000. a)A 10.50% p.a. coupon rate, 15 years to maturity with a yield of 8% p.a. b)A 7% p.a. coupon rate, 10 years to maturity and a yield of 8% p.a. c)A 12% p.a. coupon rate, 20 years to maturity and a yield of 10% p.a.arrow_forwardUse the following information to answer questions 1 - 4. A 5-year 8% annual coupon bond yields 7%. Question 1 The price quoted in the paper is Question 2 The current yield is Question 3 The yield to maturity is Question 4 .%. .%. If you buy $25,000 face value, each coupon cash flow will be $..arrow_forward
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