A 20-year, zero-coupon bond was recently being quoted at 23.629% of par. Find the current yield and the promised yield of this issue, given that the bond has a par value of $1,000. Then, usia semiannual compounding, determine how much an investor would have to pay for this bond if it were priced to yield 9.480%. The current yield on this bond is. (Round to the nearest whole percent)
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- A bond with face value $1399 and a term of 11 years pays quarterly coupons of 11% per annum. The bond is offered at a price of $1050. You are to enter the above values into a spreadsheet, along with - an initial wild guess at what the yield would be, and - a calculation of the bond price using your guess as the yield. (a) Use Excel’s “Solver” (which is different from “Goal Seek”) to solve for the actual yield that produces the correct bond price. Take a screen shot of your computer with “Solver” open showing clearly the entries that you put into Solver. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the yield calculated by Solver?A coupon bond of 7.9 percent with 15 years left to maturity is priced to offer a 6.45 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.2 percent. (Assume interest payments are semiannual.) What would be the total return of the bond in dollars? What would be the total return of the bond in percentage? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Total return in dollars Total return in percentage Check my work %The current market price of a 5-year zero-coupon bond is $654.321. The face value of the bond is $1,000.00. Then, what is the continuous compounded yield per annum (annualized yield compounded continuously) on this bond? [If an investor holds the bond till its maturity, then this yield is also known as the holding period return.]
- A 7.5 percent coupon bond with 13 years left to maturity is priced to offer a 6.25 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What would be the total return of the bond in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total return What would be the total return of the bond in percentage? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total return %The current market price of a given zero-coupon bond is $747.470. The face value of the bond is $1,000.000. The annualized continuously compounded yield on the bond is 8.000%. Then, what is the implied time to maturity (in years) of this bond?You find a zero coupon bond with a par value of $10,000 and 19 years to maturity. The yield to maturity on this bond is 4.7 percent. Assume semiannual compounding periods. What is the price of the bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
- You find a zero coupon bond with a par value of $10,000 and 16 years to maturity. The yield to maturity on this bond is 5.3 percent. Assume semiannual compounding periods. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. The yield to maturity on this bond is 4.6 percent. Assume semiannual compounding periods. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) PriceNikita Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and selling for $954. At this price, the bonds yield 6.2 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate %
- a. Nestle has just issued a callable (at par) six-year, 7.5% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $105 per $100 face value, implying a yield to maturity of 6.47%. What is the bond's yield to call? b. When would an issuer redeem a callable bond? Hope to have a detailed calculation process. must with a likeAssume that a RMI,000 par value bond has a coupon rate of 5% and will mature in 10 years. It has a current price of RMS10.34. Given this information, answer the following questions. i) Calculate the yield of maturity of the bond. ii) Calculate the current yield of the bond. ii) Discuss why the current yield differs from the yield of maturity.Calculate the duration of a zero-coupon bond with five years to maturity, face value of $1000, and effective annual yield of 12.1604%. Show your calculations. What does your answer say about the duration of zero-coupon bonds in general?