A zero-coupon bond has a yield to maturity of 6% and a par value of $1000.  If the bond matures in 15 years, it should sell for a price of __________ today.

Q: What is the yield to maturity of a ten-year, $5,000 bond with a 4% coupon rate and semiannual…

A: Yield to maturity is the rate of return investors earn if the bond is held until maturity. Bond…

Q: There is a zero coupon bond that sells for $372.88 and has a par value of $1,000. If the bond has 9…

A: Bonds are debt instruments issued by entities and companies. The bond holders receive periodic…

Q: A bond has a time to maturity of 12 years, a coupon rate of 5% with interest paid quarterly, a…

A: Current price of the bond refers to the net present value of bond that is being computed after…

Q: A coupon bond that pays interest annually, has a par value of P1,000, matures in 5 years, and has a…

A: Par value = P 1000 Coupon rate = 12% Coupon amount = 1000*0.12 = P 120 Years to maturity = 5  Years…

Q: There is a zero coupon bond that sells for $414.68 and has a par value of $1,000. If the bond has 14…

A: Yield to maturity can be calculated by following function in excel=RATE (nper, pmt, pv, [fv],…

Q: A bond with face value P10,000 has a semiannual coupon rate of 6%. With a time to maturity of 3…

A: Current yield:  The total revenue of a bond is divided by its market price to get the bond's current…

Q: What must be the price of a $2,000 bond with a 5.8% coupon rate, annual coupons, and 30 years to…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: A risk-free, zero-coupon bond with a face value of $1,000 is traded at $359.49. If the YTM is 10.0%,…

A: P is the current price of the bond, which is $359.49.F is the face value of the bond, which is…

Q: A bond with 12 years to maturity and a semiannual coupon rate of 7.64 percent has a current yield of…

A: Bond price refers to the current market value of a bond. It is determined by factors such as…

Q: if you want a yield to maturity of 6%? Assume that the bond will mature in 10 years and th will be…

A: Price of bond is sum of present value of coupon payment plus present value of par value of bond.

Q: What is the price of a zero-coupon bond with a YTM of 4.5% and 10 years until maturity?…

A: The objective of this question is to calculate the price of a zero-coupon bond given its yield to…

Q: A ten-year, zero-coupon bond with a yield to maturity of 6.9% has a face value of $5,000. An…

A: Given:  YTM of zero coupon bond = 6.9%  Face value = $5,000  Years to maturity, n = 10 years    The…

Q: What is the yield to maturity of a eight-year, $5,000 bond with a 5.1% coupon rate and semiannual…

A: YTM is expressed as an annual percentage rate (APR) and is calculated using a complex formula that…

Q: What is the yield to maturity of a(n) five-year, $5,000 bond with a 4.8% coupon rate and semiannual…

A: YTM is expressed as an annual percentage rate (APR) and is calculated using a complex formula that…

Q: What must be the price of a $2,000 bond with a 5.8% coupon rate, annual coupons, and 30 years to…

A: Price of the bond is the present value of future cashflows

Q: Given the following two three-year bonds, what is the three-year spot rate? Bond Face Value Annual…

A: The spot interest rate on bonds is determined for the Zero-coupon bonds. Zero-coupon bonds are the…

Q: A 15-year semiannual coupon bond trades at a price of $905, has a coupon rate of 10%, and a face…

A: A bond refers to an instrument that provides the issuing organization access to debt capital from…

Q: What is the price (present value) of a 2 year coupon bond with a face value of $4,500 and a coupon…

A: Face value = $4,500Coupon rate = 2%Years to maturity = 2 yearsYTM = 3%

Q: What is the yield to maturity of a nine year 5000 bond with a 5% coupon rate and semiannual coupons…

A: YTM is expressed as an annual percentage rate (APR) and is calculated using a complex formula that…

Q: What must be the price of a $10,000 bond with a 6.3% coupon rate, semiannual coupons, and ten years…

A: Price of the bond refers to the present value of all the intermediate earnings and the maturity…

Q: What is the price of a bond with a par value of $1,000, an 8% coupon rate paid annually, and a yield…

A: Current price of bond is that price which can be paid for purchase of the bond. It is also called…

Q: A ten - year, zero - coupon bond with a yield to maturity of 6.4% has a face value of $1,000. An…

A: A zero-coupon bond is a debt market security that does not pay any regular fixed payments, rather…

Q: The market price of a bond is $825.60, it has 15 years to maturity, a $1000 face value, and pays an…

A: Yield to maturity refers to the return that is being made by the investor on the amount of…

Q: What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 5.90%?…

A: Par value of Bond = 1000 Yield to maturity = 5.90% Bond maturity in years = 7

Q: Consider a zero-coupon bond with a $1,000 face value and 10 years to maturity. The price this bond…

A: Z = Maturity value or face value i.e. $1000 r = Yield to maturity i.e. 0.071 p = Maturity period…

Q: A company issues a callable (at par) 20-year, 5% coupon bond with annual coupon payments. The bond…

A: Bond period = 20 years Coupon rate = 5% Bond price = $103 per $100 face value Callable period = In…

Q: The market price of a three-year 4% annual-coupon bond is 946.54. If the YTM remains unchanged after…

A: Return from Bond can be denoted by Bond Yield percentage. Bond yield percentage is the rate of…

Q: A bond with an annual coupon of OMR100 originally sold at par for OMR1,00o. The current market…

A: Bonds: A bond, also recognized as a static-income security, is a debt instrument shaped for the…

Q: What must be the price of a $1,000 bond with a 6.5% coupon rate, annual coupons, and 20 years to…

A: Bond price is the sum of present value of all coupon payments and present value of face value. Bond…

Q: What is the market price of a zero-coupon bond (that is, a bond that will not pay any coupon…

A: Face value of zero coupon bond (F) = $1000 n = 16 years = 32 semiannual periods r = 3.6% per annum =…

Q: A zero-coupon bond has a $1,000 par value, 7 years to maturity, and sells for $554.63. What is its…

A: Yield to maturity:Yield to maturity (YTM) is a financial term that refers to the total return an…

Q: Suppose a seven-year, $1,000 bond with a(n) 10.93% coupon rate and semiannual coupons is trading…

A: Yield to maturity (YTM) of the bond is the rate which investors will earn if the bond is held till…

Q: I want the Correct answer. What is Correct option

A:

Q: What is the yield to maturity of a 9.4%semiannual coupon bond with a face value of​ $1,000 selling…

A: Time Period =  10 Years × 2= 20 semi annual periods Face Value = 1000 Price of bond = 899.40 Coupon…

Q: yeild to maturity using t.

A: Yield to maturity represents the rate of return on the value of the bond while assuming the investor…

Q: What would you pay for a bond that pays an annual coupon of $45, has a face value of $1,000, matures…

A: Face value of bond (FV) = $1000 Annual coupon amount (C) = $45 Years to maturity (n) = 11 Years…

Q: Consider a 25 year bond that pays 4.7% semi-annual coupons. What should the bond sell for if the par…

A: Bonds are debt instruments issued by companies. The issuing company pays periodic coupons or…

Q: What is the value of an Orion bond that has a 10 percent emiannually, and has 10 years to maturity,…

A: Price of bond is the present value of the coupon payments plus present value of the par value of the…

Q: Consider a 19-year, 3.6% coupon rate, $1,000 face value bond that pays annual coupons. If the bond's…

A: Using excel PV function

Q: Calculate the redemption a. 1089 b. 1431 C. 1203 d. 1192 - 1347

A: Price of bond is sum of present value of coupon payment plus present value of redemption value.

Q: The duration of a15 year, zero-coupon bond _____? Should be able to find the solution with the…

A: A zero-coupon bond is a type of bond that does not pay periodic interest (coupons) to the bondholder…

Q: A bond has three years to maturity, a $2,000 face value, and a 5.9% coupon rate with annual coupons.…

A: YTM is also known as Yield to maturity. It is a capital budgeting technique which helps in decision…

Q: The ask yield on a 6% coupon Treasury bond maturing in 8 years is 5.488%. If the face value is…

A: Present value of the bond refers to the present value of the interest and maturity value discounted…

Q: A company issues a callable (at par) 20-year, 5% coupon bond with annual coupon payments. The bond…

A: Since , the bond is callable after a year or anytime after first coupon payment , so we will…