A 10-year government bond has a face value of £100 and an annual coupon rate of 5%. Assume that  the interest rate is equal to 6% per year.  (a) Calculate the bond’s present value if it pays the interest annually, and also the present value if  it pays semi-annually.  (b) Calculate the market price of the bond when the interest rate changes to 8%   please explain it on a paper with formula, not by excel.

A bond pays $11,000 per year for the next 10 years. The bond costs $99,000 now. Inflation is expected to be 6 percent over the next 10 years. Answer parts (a) and (b). a. What is the current dollar internal rate of return? Use linear interpolation with x₁ = 1.95% and x₂ = 2.00% to find your answer. The current dollar internal rate of return is percent. (Type an integer or decimal rounded to two decimal places as needed.)

i need help with part B please. A government bond with 2 years until maturity has a face value of £120,000 and anannual nominal coupon rate of 1%. Assume that the relevant nominal market interestrate (annualized) is equal to 5%. The coupon payments are made every 6 months.(a)  Calculate the present value of the bond. (b)  Assume the individual coupons are stripped from the bond and soldseparately as zero coupon bonds. Calculate the market value of these zero couponbonds. Assume there are no further changes to the market rate. How would youexpect the price of the bond to evolve?

Please help answer this question.

Please answer part A-D and give a short explanation of how you arrived at the answer. A) Treasury securities that mature in 10 years currently have an interest rate of 14.7%.  Inflation is expected to be 5% each of the next three years and 6% each year after the third year. The maturity risk premium is estimated to be 0.2%(t - 1), where t is equal to the maturity of the bond (i.e., the maturity risk premium of a one-year bond is zero). The real risk-free rate is assumed to be constant over time. What is the real risk-free rate of interest? B) Assume that the expectations theory holds, and that liquidity and maturity risk premiums are zero. If the annual rate of interest on a 2-year Treasury bond is 14.8  percent and the rate on a 1-year Treasury bond is 16.3  percent, what rate of interest should you expect on a 1-year Treasury bond one year from now? C) Assume that a 3-year Treasury note has no maturity premium, and that the real, risk-free rate of interest is 3 percent. If the T-note…

A seven-year government bond makes annual coupon payments of 5% and offers an interest rate (ie. YTM) of 3% annually compounded. Suppose that one year later the bond still yields 3%.    a) What is the bond price in year 0?  b) What is the bond price in year 1?  c) What return has the bondholder earned over the first year?

Suppose that the current 6-month, 1-year, 1.5-year and 2-year interest rates are 2.2%,3%, 3.5% and 3.75%, respectively. a) Calculate the prices of a 1-year and 2-year Treasury bonds. In each case, assumethe face value of £100 and the coupon rate of 5% per annum and that coupons arepaid semi-annually. Assume continuous compounding. Compare the obtainedresults. Are they consistent with your expectations? b) Calculate the par yield on the 1-year bond with semi-annual coupons

A General Power bond carries a coupon rate of 9.2%, has 9 years until maturity, and sells at a yield to maturity of 8.2%. (Assume annual interest payments.) a. What interest payments do bondholders receive each year? b. At what price does the bond sell? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. What will happen to the bond price if the yield to maturity falls to 7.2%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. A a. Interest payments b. Price c. Price will by

A Bank offers both loans and deposits at a nominal  interest rate of 4% that is continuously compounded A) What is the effective rate offered by the bank?  B) The bank also offers a 3-year bond with face value £10000, redeemable at par, with 10% annual coupons. What is the final payment of that bond? C) Assuming there are no arbitrage opportunities, what is the price of the above bond?

A bond pays $10,000 per year for the next 10 years. The bond costs $90,000 now. Inflation is expected to be 6 percent over the next 10 years. Answer parts (a) and (b). a. What is the current dollar internal rate of return? Use linear interpolation with x, = 1.95% and x, = 2.00% to find your answer. The current dollar internal rate of return is percent. (Type an integer or decimal rounded to two decimal places as needed.) b. What is the real internal rate of return? The real internal rate of return is percent. (Type an integer or decimal rounded to two decimal places as needed.)