A B Using the present value charts find the value that should be paid for the following bonds; Coupon Rate Years to Maturity Required Rate of Return 12% 10 8% 25 10% 20 10% 6% 11% Market Price
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- The table below gives you some information with respect to bonds. Calculate the yield-to-maturity for all these bonds. Assume you hold till maturity what would you pick? Company Settlement Price Maturity Coupon YTM Morgan Stanley 2/10/2023 100.85 2/25/2023 3.75 ? Fidelity 2/10/2023 99.839 3/01/2023 0.375 ? Caterpillar 2/10/2023 100.00 3/01/2023 2.625 ? NextEra Energy 2/10/2023 99.889 3/01/2023 0.650 ? BNP Paribas 2/10/2023 100.08 3/03/2023 3.250 ?Consider the following zero coupon bonds:Bond Yrs to Mat. Yield to Maturitya 1 0.0433b 2 0.046c 3 0.0495d 4 0.0511e 5 0.0531f 6 0.0555What is the forward rate for year5 Group of answer choices 0.0630 0.0593 0.0648 0.0611 0.0668 Please answer fast i give you upvote.The following information about bonds A, B, C, and D are given. Assume that bond prices admit noarbitrage opportunities. What is the convexity of Bond D?Cash Flow at the end ofBond Price Year 1 Year 2 Year 3A 91 100 0 0B 86 0 100 0C 78 0 0 100D ? 5 5 105
- Use the table for the question(s) below. Consider the following four bonds that pay annual coupons: Coupon Bond Years to maturity YTM A 1 0% 5% B 6% 7% C 10 10% 9% D 20 0% 8% The percentage change in the price of the bond "A" if its yield to maturity increases from 5% (Price0) to 6% (Price1) is closest to: О А. 4%. В. - 1%. C. - 4%. OD. - 6%. O O O Oe calculate the prices for bonds A-D and the yields for bonds D-G. Coupon Par Value Cash flows: Market price Yield Ꭰ E F G 6.00% 6.70% 5.40% 0.00% 1,000 (757) (813) (799) (505) 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0Consider the following pure discount bonds with face value $1,000: Maturity Price 1 952.38 2 898.47 3 847.62 4 799.64 5 754.38 a). Find the spot rates and draw a yield curve.b). Assume that there is a constant liquidty premium that is equal to 1% across all maturities. Find the forward rates and the expected one period future interest rates.
- What relationship between the required return (ytm) and the coupon interest will cause a bond to: a) Be priced at a discount¿ FALL2022 b) Be priced at a premium? c) Be priced at its par value?Comment on the attractiveness of the bonds in two ways: a) How does the yield compare to the benchmark? Market YTM: 3.62% YTM of bond: 3.72% b) How does the current price compare to the benchmark-yield implied price? Price: 100.875 Implied price: 100.9232. Determine the purchase price and the amount of premium/discount of the given bonds. Face Value Coupon Rate Yield Rate Redemption Date Purchase Date Purchase Price ? a. $1000.00 5.25% 5.25% January 01, 2024 January 01, 2019 b. $5000.00 4.75% 6.75% October 20, 2028 October 20, 2018 ? c. $10,000.00 7.85% 4.15% August 16, 2034 August 16, 2014 ? Amount of Premium/Discount ? ? ?
- Explain what you see from the pricing calculations. How do the two bonds differ? Bond C Bond Price = PV(rate,nper,pmt,fv) Given: n = Period which takes values from 0 to the nth period = 0,1,2,3 & 4 Cn = Coupon payment in the nth period = 10%*$1,000 = $100 YTM = interest rate or required yield = 9.6% P = Par Value of the bond = $1,000 Bond Z Bond Price = PV(rate,nper,pmt,fv) Given: n = Period which takes values from 0 to the nth period = 0,1,2,3 & 4 Cn = Coupon payment in the nth period = 0%*$1,000 = $0.00 YTM = interest rate or required yield = 9.6% P = Par Value of the bond = $1,000 years Bond A Bond Z 4 $1,012.79 $693.04 3 $1,010.02 $759.57 2 $1,006.98 $832.49 1 $1,003.65 $912.41 0 $1,000.00 $1,000.00(3) Use a 1 bps shock to compute duration and convexity (using approximating measures for duration and convexity, respectively) for the following bond as of the origination date. Origination Date Maturity Date 12/31/2021 12/31/2023 $100 Par Value Annual Coupon Rate 2.00% Рayment frequenсy Quarterly Assume the applicable zero rates for this bond are the following on 12/31/2021 Date Zero rate 12/31/2021 3/31/2022 0.18% 6/30/2022 9/30/2022 0.42% 0.64% 12/31/2022 0.84% 3/31/2023 6/30/2023 9/30/2023 12/31/2023 1.06% 1.24% 1.35% 1.42%The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100 face value of a two-year, zero-coupon, risk-free bond? The price per $100 face value of the two-year, zero-coupon, risk-free bond is $ Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) 1 2 YTM 4.99% 5.53% Print 3 5.72% Done (Round to the nearest cent.) 4 5.92% 5 6.07% X