Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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a treasury bond has a quoted bid price of 97.125 and a quoted ask price of 97.255. what is the amount you will recieve if you sell your bond that has a par value of 25,000
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- A bond is currently selling for $880. This indicates that this bond is _____, and you would expect that the coupon rate would be _____ than the current market rate. Attractive; greater than Attractive; less than Unattractive; greater than Unattractive; less thanarrow_forwardA bond with a principal of $1,000 a. will sell for the market determined price. O b. will always sell for more than $1000. O C. will always sell for exactly $1000. O d. will always sell for less than $1000.arrow_forwardBond A is a premium bond with a 9 percent coupon. Bond B is a 5 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 6 percent, and have five years to maturity. The face value is $1000 for both bonds. a. Why is the capital gain yield of the premium bond different from that of the discount bond? Which bond is better in terms of yields? b. What is the holding period return for each bond, if both bonds are held over the next year and sold at the year ned?arrow_forward
- A Treasury bond that settles on August 10, 2022, matures on November 5, 2029. The coupon rate is 6.8 percent and the 11811 32 quoted price is What is the bond's yield to maturity? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Yield to maturity A Treasury bond that settles on August 10, 2022, matures on November 5, 2029. The coupon rate is 6.8 percent and the quoted price is 118 11/32. What is the bond's yield to maturity? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Yield to maturityarrow_forwarda bond is selling for 850 and pays coupon of 0.09 what is the current yielsarrow_forwardSuppose that a short-term government bond has a face value of $100. If the price of that bond is $95. What is the insterest rate of that bond? 5.3% 9.0% 10.0% 1.0%arrow_forward
- You have a bond with a modified duration of 14 years currently. The convexity of the bond is 169. In the event that the bond's yield changes from 8.6% to 10%, what will be the approximate percentage change in the bond's price? Enter your answer as a decimal number or with the percentage sign.arrow_forwardA $1,000 face value bond has a conversion ratio of 40. You estimate the transaction costs of conversion to be 2.8% of the face value of the bond. What price must the stock reach in order for you to convert?arrow_forwardIf you asked your broker to buy you a 12% bond when the market interest rate for such bonds was 11%, would you expect to pay more or less thanthe face amount for the bond? Explain.arrow_forward
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