Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A bond with 15 years to maturity, a face value of $1000, pays a coupon rate of 14% APR compounded semi-annually. If this
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- A bond has a coupon rate of 4.2% when yields are 3.16%. Coupon are paid semi-annuallly. If the bond has 12 years to maturity, what is the price of the bond?arrow_forwardA bond has a time to maturity of 10 years, and a coupon rate of 7% with coupon interest paid semiannually. If the current market price is $815, what will be the approximate price of this bond at the end of the second year?arrow_forwardThe present value (price) of a 10 year bond is 938.55 TL if the market quoted yield to maturity is 10%? This bond has a face (par) value of 1,000 TL which is payable annually and matures in 10 years. What is the coupon rate of this bondarrow_forward
- A 30-year maturity bond making annual coupon payments with a coupon rate of 11.00% has a ation of 13.50 years. The bond currently sells at a yield to maturity of 5.75%. Ducation a. Find the exact dollar price of the bond if its yield to maturity falls to 4.75%. What is the % change in price? b. Assume that you need to make a quick approximation using the duration rule. What is the % change in price as approximated by the duration rule when the yield to maturity falls to 4.75%? c. Does the duration-rule provide a good approximation of the % price change in this case? Why or why not?arrow_forwardA 5.25 percent coupon bond with 14 years left to maturity can be called in four years. The call premium is one year of coupon payments. It is offered for sale at $1,075.50. What is the yield to call of the bond? (Assume interest payments are semiannual.)arrow_forwardYou are looking at a 18-year zero-coupon bond that has a yield to maturity of 5.0% . What is the value of the bond? Assume semi-annual compounding. learrow_forward
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