Aeyu is looking to invest in bonds. She searched her local newspaper for information and found the bond quote of a private company called BrainX. Par Value: Coupon (%): Maturity: Last Price (%): What is the current yield of this particular bond? $1,000 3.115 5/21/32 98.211
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- You want to determine the value of your company bond that you have held. The market has not traded your security in a long time but still makes payments semiannually 6.2% coupon and 7 years. You find two similar bonds with characteristics as follows. Bond X: 4-year 6% coupon priced at 950 Bond Y: 6-year 5% coupon priced at 980, 1000 bond value a. What is the approximate price of your bond? b. How does your bond compare to the other two bonds?Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Show Transcribed Text B) How could you construct a 1-year forward loan beginning in year 3? (Face Value) C) How could you construct a 1-year forward loan beginning in year 4? (Face Value) Required A Required B Complete this question by entering your answers in the tabs below. Face value Rate of synthetic loan → Show Transcribed Text Price $ 970.93 898.39 836.92 How could you construct a 1-year forward loan beginning in year 3? Note: Round your Rate of synthetic loan answer to 2 decimal places. Required A 776.20 685.42 Required B Face value Rate of synthetic loan Required C 7.85 % Required C How could you construct a 1-year forward loan beginning in year 4? Note: Round your Rate of synthetic loan answer to 2 decimal places. Ċ 13.29 %Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from each bond. All bonds pay annual coupon Bond Number of Bonds Туре Coupon rate ΥTM Maturity Face Value A 25 Discount Bond 5.5% 8.6% 12 years 3000 В 17 Par Bond 13 years 1000 29 Premium Bond 10.2% 5.2% 18 years 3000 Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock. Dividends 0 Dividends 1 Required Return Stock Number of Dividends Type Growth Stock 2300 Zero Growth 10% 3.8 Y 1900 Constant 15% 4% 1.8 Growth 2100 Constant 14% 3% Growth Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount
- Yoko's aunt ask's her to to analyze Bond XYZ: Bond Face Value = $1000 Coupon = 12%, paid annually Maturity = 8-years Bond Price = $1047.37. Yoko tells her Aunt that the Current Yield of the bond is 12.52%. Is Yoko's statement true or false?Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from each bond. All bonds pay annual coupon Bond Number of Bonds Туре YTM Coupon rate 5.9% Maturity Face Value 13 years A 20 Discount Bond 8.9% 3000 B 17 Par Bond 15 years 1000 24 Premium Bond 9.6% 5.0% 14 years 1000 Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock. Stock Number of Stock Dividends Type Required Return 15% Dividends 0 Growth Dividends 1 2700 Zero Growth 3.4 区 Y 1900 Constant 16% 5% 1.8 Growth 2300 Constant Growth 16% 6% 2 Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Click Save and Submit to save and submit. Click Save AllAnswers to save…Assume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume face value is $100. Bond Coupon a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the duration of each bond? Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
- Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $1,000, and the current date is April 19, 2022. Company (Ticker) του (του) Coupon Maturity 6.90 April 19, 2037 a. Yield to maturity b. Current yield a. What is the yield to maturity of the bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated Last Price Last Yield Volume (000) 92.750 77 75 % %An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.9%. Bond C pays a 11% annual coupon, while Bond Z is a zero coupon bond. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Assuming that the yield to maturity of each bond remains at 8.9% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Do not round intermediate calculations. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z 4 $ fill in the blank 2 $ fill in the blank 3 3 $ fill in the blank 4 $ fill in the blank 5 2 $ fill in the blank 6 $ fill in the blank 7 1 $ fill in the blank 8 $ fill in the blank 9 0 $ fill in the blank 10 $ fill in the blank 11Create an essay using the following information: Assume you are evaluating whether to purchase the following $1,000 face value bonds: Co. X bond with a 6% coupon rate that matures in 9 years. Co. Y bond with an 11% coupon rate that matures in 7 years. Also, you may wish to review https://t.ly/wJqNM and https://t.ly/2EX2k about corporate junk (junk bonds). Given the scenario and information about junk bonds, address the following: Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid annually. Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid semi-annually. Value these bonds assuming a market rate on similar risk bonds is 12% and interest is paid annually. Assuming both bonds were issued at the same time, why would the Co. Y bond pay a higher coupon rate?
- Rossiana Marie, Inc. lists a bond as Ross 9s34, and shows the price as selling for 88.875% of its face value. If your required return rate is 10%, Is it good to buy one of these bonds in 2021?FINA2... moodle1.du.edu.om T riay question Suppose you plan to invest part of your savings in bonds issued by Salalah Food Industries. Therefore, you must calculate the current yield on these bonds before making the decision to invest in them. The information below has been provided to assist you in calculating the current yield on these bonds. market price 1892 OMR, annual coupon rate 0.17 face value 2,500 OMR maturity 14 years. Select one: a. 0.1700 b. 0.1287 C. All the given answers in this question are wrong d. 0.2246 IIMissing information on a bond. Your broker faxed to you the following information about two semiannual coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: Fill in the missing data from the information that the broker sent. Data table What is the price of the IBM coupon bond? $ (Round to the nearest cent.) (Click on the following icon in order to copy its contents into a spreadsheet.) Features IBM Coupon Bond AOL Coupon Bond Face value (Par) $1,000 $5,000 Coupon rate 11.5% ? Yield to maturity 9.5% 10.5% Years to maturity 25 20 Price ? $4,792.66
