Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A STRIPS with nine years until maturity and a face value of $10,000 is trading for $7,693. What is the yield to maturity?
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- A Treasury note has 2 years left to maturity, a $1,000 face value, and a coupon rate of 4.4%, with annually (in $) paid coupon. Suppose this Treasury note is currently traded in the market at $970, what is the yield to maturity?arrow_forwardPK Ltd issues $8 million in 5-year debentures that pay interest every 6 months at a coupon rate of 12% per annum. The required market rate of return is 16% per annum. What is the issue price of the debentures (rounded to the nearest dollar)?arrow_forwardA commercial bill with a face value of P100,000 has a current price of P97,711. This bill has 95 days to maturity what is its yield?arrow_forward
- A put currently has a strike price of $54 and a maturity of six months. what will be the profit/loss in each scenario to an investor who buys the put for $6.40? (a)$44 (b)$49 (c)$54 (d)$59 (e)$64arrow_forwardWhat is the current yield of a 6-year Treasury note with a coupon rate of 5%, a face value of $100, and is currently trading at 100:21?arrow_forwardPlease help mearrow_forward
- A $1000 per value bound sells for $ 1216. It matures in 20 years has a 26 percent coupon pays interest semiannual and can be called in 5 years at a price of $1156. What is the yield to call. A. 25.78 b. 13.14 c. 26. 28 d. 12. 89arrow_forwardAssume oat forward prices over the next 3 years are $2.30, $2.40, and $2.33, respectively. Effective annual interest rates over the same period are 5.5%, 5.8%, and 6.1%. What is the 3-year swap price if the delivery in year 1 is 100,000 bushels, the delivery in year 2 is 125,000 bushels and the delivery in year 3 is 175,000 bushels?arrow_forwardThe spot price of an investment asset is $35 and the risk-free rate for all maturities is 5% with continuous compounding. The asset provides an income of $2 at the end of the first year and at the end of the second year. Which of the below is closest to the three-year forward price? a. $35.84 b. $19.67 c. $40.50 d. $36.35arrow_forward
- Assume that you conduct a relative value trade and close it out after 34 days. Your 34-day return is 0.40%. Annualize this return as an effective annual yield (EAY). Assume that a year has 365 daysarrow_forwardA commercial bill with a face value of P100 000 has a current price of P97 711. This bill has 95 days to maturity what is its yield?arrow_forwardWhat is the present value of a security that will pay $18,000 in 20 years if securities of equal risk pay 8% annually? Round your answer to the nearest cent.arrow_forward
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