2. The demand curve and supply curve for one-year discount bonds with a face value of $900 are represented by the following equations Bd: Q = -0.25 P+ 200, B: P = 20 - 100. What is the expected equilibrium price and quantity of discount bonds in this market? What is the yield to maturity in this market?

Rework part (f), assuming that Annie holds the bond for 10 years and sells it when the required return is 7.0%. Compare your finding to that in part (f), and comment on the bond's maturity risk.  PV= 1,000 N=10 I/Y= 7%   Assume that Annie buys the bond at its current price of $983.80 and holds it until maturity. What will her current yield and yield to maturity (YTM) be, assuming annual interest?    After evaluating all of the issues raised above, what recommendation would you give Annie with regard to her proposed investment in the Atilier Industries bonds?

Explain what the term "bond price elasticity" means. Would bond price elasticity indicate that zero-coupon or high-coupon bonds with the same yield to maturity have a greater price sensitivity? Why? What does this mean for the market value volatility of zero-coupon Treasury bonds vs high-coupon Treasury bonds in mutual funds?

d)Assume that all the information given previously is the same and the defaultrisk premium for corporate bonds rated AAA is 1.5 percent, whereas it is4 percent for corporate bonds rated B. Compute the interest rates onAAA- and B-rated corporate bonds with maturities equal to one year, twoyears, three years, four years, five years, 10 years, 20 years, and 30 years.

NEED HELP WITH ALL PARTS PLZZZZZ!!!

What is the difference between (Fair Market Price) and (Current Market Price)? I struggle to understand how both relate to the (Required Rate of Return) and (Expected Rate of Return). Please correct me if I am wrong, my understanding is that if Fair Market Price is greater than the Current Market Price on security/stock, then I should buy more. In contrast, I have to sell when it's vice versa. I would appreciate it if you could illustrate with examples, i.e., numbers.

31) Suppose in 2017 you buy two year $1,000 face-value 5% coupon bond for $1,000. In 2018, interest rates decrease to 2%. If you decide to sell your bond in 2018, what will be the selling price of your bond and one-year rate of return for you? A) $1,020; 7% B) $1,000; 2% C) $971; -2.1% D) $1,029.4; 7.9%

Consider a U.S. Treasury Bill with 270 days to maturity. The face value is $100. If the annual yield is 4.7 percent, what is the price? (Note: Treat 270 days as 9 months, or 9/12 of a year using a 360-day year.)

Suppose an FI has a long position in zero-coupon bonds of seven years to maturity with a face value of $1,631,483. Today's yield on these bonds is 7.243 percent per year. These bonds are held as part of the trading portfolio. Suppose we define bad yield changes such that there is 1 chance in 20 (or a 5 percent chance) that the next day's yield increase (or shock) will exceed this given adverse move. Assuming normality and suppose that during the last year the mean change in daily yields on seven-year zero-coupon bonds was 0 percent while the standard deviation was 10 basis points. a) Estimate the dollar market value of position b) Potential adverse daily yield move c) Estimate price volatility d) Estimate daily earnings at risk e) Estimate value at risk over a period of 10 days

How much would you pay for a perpetual bond that pays an annual coupon of ​$200 per year and yields on competing instruments are 5​%?   You would pay $.   Part 2 If competing yields are expected to change to 8​%, what is the current yield on this same bond assuming that you paid ​$4,000?   The current yield is ​%.​(Round your response to the nearest​ integer.) Part 3 If you sell this bond in exactly one​ year, having paid ​$4,000, and received exactly one coupon​ payment, what is your total return if competing yields are 8​%?   Your total return is ​%.