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.
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A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
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- Consider a risk-free zero-coupon bond with face value $1000, 20 years to maturity. If the yield to maturity (YTM) is 6%, the price at which this bond will trade is closest to: A. $167.44 B. $312 C. $214.55 D. $174Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If the YTM of this bond is 5.1%, then the price of this bond is closest to: OA. $61.00 OB. $85.13 OC. $100.00 OD. $72.97 -- 4 Q Search Time RemThe market price of a bond is $825.60, it has 15 years to maturity, a $1000 face value, and pays an annual coupon of $80. What is the yield to maturity? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с d e 10.34% 14.00% 16.24% 19.31% 19.95%
- You have a 15-year maturity, 4% coupon, 6% yield bond with duration of 10.5 years and a convexity of 128.75. The bond is currently priced at $805.76. If the interest rate were to increase 200 basis points, your predicted new price for the bond (including convexity) is Select one: O A. $662.23 B. $642.54 OC. $705.03 OD. $638.85Consider a zero-coupon bond with a $1,000 face value and 10 years to maturity. The price this bond will trade if the Yield To Maturity is 7.1% is closest to: A) $604.35 B) $805.8 C) $705.07 D) $503.62You purchase a zero coupon bond with 12 years to maturity and a yield to maturity of 4.93 percent. The bond has a par value of $1,000. What is the implicit interest for the first year? Assume semiannual compounding. a.$27.12 b.$26.89 c.$27.82 d.$24.34 e.$26.71
- A coupon bond that pays interest annually, has a par value of P1,000, matures in 5 years, and has a yield to maturity of 10%. The market price of the bond today will be if the coupon rate is 12%. Group of answer choices P1,077.20 P922.77 P1,075.82 P924.16Suppose a bond with a 12% coupon rate and semiannual coupons, has a face value of $1,000, 10 years to maturity and is selling for $1,197.93. Calculate: A. Current yield, and B. YTM if the price of the bond in one year is $2,014.83 STEPS MAY INCLUDE USE OF FINANCIAL CALCULATOR (BA 2 PLUS)A risk-free, zero-coupon bond has 15 years to maturity. Which of the following is closest to the price per $1000 of face value that the bond will trade at if the YTM is 6.1%? $885.05 $774.42 $553.15 $663.78
- A bond that pays interest semiannually has a price of $965.18 and a semiannual coupon payment of $29.00. If the par value is $1,000, what is the current yield? O 5.80% O 3.00% O 5.71% O 6.01% A Moving to another question will save this response. Question 16 of 30> >You are considering investing in a zero-coupon bond that will pay you its face value of $100 in twelve years. If the bond is currently selling for $39.71, then the internal rate of return (IRR) for investing in this bond is closest to: O A. 8.0% О В. 10.2% Ос. 7.0% O D. 9.1%Consider a bond with a face value of $1,000 that sells for an initial price of $700. It will pay no coupons for the first nine years and will then pay 11% coupons for the remaining 29 years. Choose an equation showing the relationship between the price of the bond, the coupon (in dollars), and the yield to maturity. O A. B. O C. O D. 700 = 700 = 700 = 700 = 110 110 9 (1+i)⁹ (1+i)⁹+1 + 110 + i) ⁹ + 1 (1 + 1,000 (1+i) 29-9 1,000 (1 + i) 9 +29 + +...+ 110 (1+i) 9+2 + 110 (1 + i)9+29-1 110 + (1 + i) ⁹ + 110 (1+i)9 +29 9+29-1 + 110 (1 + i)9 +29 + 1,000 (1+i) 9+29