A ten-year, inflation-indexed bond has a par value of $10,000 and a coupon rate of 5 percent. During the first six months since the bond was issued, the inflation rate was 2 percent. Based on this information, the annual coupon payment after six months will be $.___._._. O 250 255 O 500 O 510
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- A newly issued 10-year, $1,000, zero coupon bond just sold for $311.05. What is the implicit interest, in dollars, for the first year of the bond's life? Assume semiannual compounding. Please show how this can be set up in Excel, thank you.Suppose a $4,500 bond will pay you $325 at the end of each quarter until the face value of the bond ($4,500) is repaid at maturity. What is the fair market value of the bond if it matures in 6 years and the market rate of return is 6.1% compounded quarterly? $9,620.42 $11,090.01 $10,991.02 $9,719.40A newly issued 10-year, $1,000, zero coupon bond just sold for $311.05. What is the implicit interest, in dollars, for the first year of the bond's life? Assume semiannual compounding. Please show your work.
- A 15-year Treasury bond is issued with face value of $1,000, paying interest of $46 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate? (Enter your answer as a percentage rounded to 1 decimal place.) Coupon rate ?%A ten-year USD100 par value bond pays 8% coupons semiannually. The bond is priced at USD118.20 to yield an annual nominal rate of 6% convertible semiannually. a. Calculate the redemption value of the bond. b. Calculate the book value of the bond at the end of 5th year.A $1,000 par value bond has a current price of $801.36 and a maturity value of $1,000 and matures in 5 years. If interest is paid semiannually and the bond is priced to yield 8%, what is the bond's annual coupon rate? The bond's annual coupon rate is%. (Round to three decimal places.)
- Bond A has the following terms: • Coupon rate of interest (paid annually): 12 percent • Principal: $1,000 • Term to maturity: Ten years Bond B has the following terms: • Coupon rate of interest (paid annually): 6 percent • Principal: $1,000 • Term to maturity: Ten years a. What should be the price of each bond if interest rate is 12 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. Price of bond A: $ Price of bond B: $ b. What will be the price of each bond if, after five years have elapsed, interest rate is 12 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. Price of bond A: $ Price of bond B: $ c. What will be the price of each bond if, after ten years have elapsed, interest rate is 10 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. Price of bond A: $A ten-year 100 face amount bond has an annual coupon rate of 8% payable semiannually. The bond is callable at the end of the 5th, 7th, and 9th years at par, immediately after the coupon payment. Calculate the maximum price of the bond that ensures an annual effective yield of at least 6%. (A) 108.92 (B) 111.83 (C) 114.41 (D) 115.59 (E) 116.74A 10-year Treasury note has a face value of $1,000, price of $1,200, and a 7.5% coupon rate. Based on this information, we know: Answer a. The present value is greater than its price b. The current yield is equal to 8.33% c. The coupon payment on this bond is equal to $75 d. The coupon payment on this bond is equal to $90