Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A zero coupon bond with a face value of $21,000 matures in 11 years. What should the bond be sold for now if its
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- A 8-year zero-coupon bond has an interest rate of 7.7%. What is it worth today? show your work! Answer:arrow_forwardBond A has a coupon rate of 10.04 percent, a yield-to-maturity of 14.79 percent, and a face value of $1,000.00; matures in 8 years; and pays coupons annually with the next coupon expected in 1 year. What is (X+Y+Z) if X is the present value of any coupon payments expected to be made in 3 years from today, Y is the present value of any coupon payments expected to be made in 6 years from today, and Z is the present value of any coupon payments expected to be made in 9 years from today? An amount equal to or greater than $82.70 but less than $124.77 O An amount equal to or greater than $141.42 but less than $172.16 O An amount equal to or greater than $124.77 but less than $141.42 O An amount less than $82.70 or a rate greater than $229.36 An amount equal to or greater than $172.16 but less than $229.36arrow_forwardA bond with a face value of P1,000 that will matures in 10 years. It pays a P50 coupon every year, and it can be called in 5 years at a call price of P1,200. The annual current yield of this bond is 4%. Determine the bond’s nominal yield to call. (In percentage, put percentage sign)arrow_forward
- A zero coupon with a $1000 face value matures in 10 years. What is the price of the bond today if the effective annual yield-to-maturity is 12.25%?arrow_forwardA zero coupon bond with $1000 face value matures in 10 years. What is the price of the bond today if the yield-to-maturity on similar risk bonds is 12% APR compounded semi-annually?arrow_forwardWhat is the most we should pay for a bond with a par value of $1000, coupon rate of 5.0% paid semi - annually, and a remaining life of 10 years? The bond is rated BBB, with a yield to maturity of 9.1%. (Round your answer to the nearest penny.) Answer:arrow_forward
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