An 8% $200,000 bond has exactly 9 years to maturity and pays semi-annually. What is the price of the bond if the yield is 6.84%pa? Give your answer correct to 2 decimal places, with no need for the dollar ($) sign.
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- A bond currently sells for $1,080, which gives it a yield to maturity of 7%. Suppose that if the yield increases by 50 basis points, the price of the bond falls to $1,050. What is the duration of this bond? (Do not round intermediate calculations. Round your answer to decimal places.) Duration yearsA bond pays a coupon of $35 semi-annually. The bond matures in 9 years and you will receive $1,000 at that time. If the required return is 9%, how much should you be willing to pay for the bond today? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. AnswerA bond has the following features: Coupon rate of interest (paid annually): 6 percent Principal: $1,000 Term to maturity: 12 years What will the holder receive when the bond matures? Principal or All coupon payments? If the current rate of interest on comparable debt is 9 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $ Would you expect the firm to call this bond? Why? -Yes or No, since the bond is selling for a discount or premium? If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for twelve years if the funds earn 9 percent annually and there is $120 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar. $
- Consider bond A with a face value of $500,000 to be repaid at maturity. The maturity of the bond is 2 years. The coupon rate is 8% per annum and coupon payments are made semiannually. The current market rate is 6% p.a. What is the bond’s duration ? Round your final answer to 2 decimal places. E.g. if the final answer is -3.59 years, type -3.59 in the answer box. If the final answer is 3.59 years, type 3.59 in the box .A 20 year, 5% annual-pay bond has a par value of $1,000, what would this bond be trading for it it were being priced to yield 12% as annual rate? what is the method to solve this equation and answer ?3. A 6-year Circular File bond pays interest of $80 annually and sells for $950. Par value is $1,000 by assumption. a)What is its coupon rate? (Round your answer to 2 decimal places.) b) What is its current yield? (Round your answer to 2 decimal places.) c) What is its yield to maturity? (Round your answer to 4 decimal places.)
- A Sunfish bond is paying 10 percent interest for 20 years on a semiannual basis. Assume interest rates in the market (yield to maturity) increase from 6 percent to 14 percent. (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Enter all amounts as positive value. Round the final answers to 2 decimal places.) a. What is the bond price at 6 percent? Bond price $ b. What is the bond price at 14 percent? Bond price $ c. What would be the percentage return on an investment bought when rates were 6 percent and sold when rates are 14 percent? Return on investment % (Click to select) profit loss (Type answer only)A 3-year bond with 10% compound rate and P1000 face value yields 8%. Assuming annual compounding payment, calculate the price of the bond. Use 5 decimal places in your computation. Answer Format: 1,111.11What is the effective yield to maturity of a $1,000 par value strip bond that sells for $745 and will mature in 5 years? (Use a Financial calculator to arrive at the answer. Round the final answer to 2 decimal places.) Effective yield to maturity
- Suppose the current interest rate on a one-year bond is 2% and the current interest rate on a two-year bond is 4%. The term premium on a two-year bond is 1%. According to the expectations hypothesis, what interest rate should we expect on a one-year bond next year? Answer as a percentage to one decimal place and do not include symbols (e.g. $, %, commas) in your answer. Answer:Assume that a bond makes 30 equal annual payments of \$1,000$1,000 starting one year from today. (This security is sometimes referred to as an amortizing bond.) If the discount rate is 3.5\%3.5% per annum, what is the current price of the bond?A 5-year bond has a coupon rate of 6.8% and pays coupons semi-annually. If the required return is 6.84%, how much should you be willing to pay for the bond today? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. NOTE: All bonds have a par value of $1000 that is paid at maturity. Answer:
