Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%. The bond has a face value of $1.000 and it makes semiannual interest payments. If you require an 9.5% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? $1,140.00 $1,010,00 $1,000.00 $1,220.00 $980.00

If you are issuing a bond that will make an annual (once per year) coupon payment of $30 for 20 years, will return a face value payment of $1000 in year 20, and the going interest rate is 2%, then the bond will fetch roughly $___________ in the market.   1160   1600   1000   1240

Assume that you are considering the purchase of a 30-year, noncallable bond with an annual coupon rate of 9.0%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 9.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Assume that you are considering the purchase of a 25-year, noncallable bond with an annual coupon rate of 9.0%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require a 10.8% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Suppose that you want to construct a 2-year maturity forward loan commencing in 3 years. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Price $ 996.04 895.89 833.92 772.80 675.18 Required: a. Suppose that you buy today one 3-year maturity zero-coupon bond with face value $1,000. How many 5-year maturity zeros would you have to sell to make your initial cash flow equal to zero (specifically, what must be the total face value of those 5-year zeros)? b. What are the cash flows on this strategy in each year? c. What is the effective 2-year interest rate on the effective 3-year-ahead forward loan? d. & e. Confirm that the effective 2-year forward interest rate equals (1 + f4) ×(1 + f5)-1. You therefore can interpret the 2-year loan rate as a 2-year forward rate for the last two years. Alternatively, show that the effective 2-year forward rate equals (1 + y5) 15 + (1+y3) ³. - 1

Suppose your firm issues a €100,000,000 5-year bond with a coupon rate of 8% per annum (assume annual compounding). The bond will sell at face value to investors. The underwriting spread is an up-front fee of 2%. What is the actual cost of this debt? Please enter your answer as % -- e.g. if your answer is 2.34% type in 2.34.

Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity. Required: a. Find the bond's price today and six months from now after the next coupon is paid. b. What is the total (6-month) rate of return on the bond? Complete this question by entering your answers in the tabs below. Required A Required B Find the bond's price today and six months from now after the next coupon is paid. Note: Round your answers to 2 decimal places. Current price Price after six months $ $ 1,052.42 1,044.52

Give typing answer with explanation and conclusion

How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 10%? You would pay $ 2000. (Round your response to the nearest penny) If competing yields are expected to change to 12%, what is the current yield on this same bond assuming that you paid $2,000? The current yield is 10%. (Round your response to the nearest integer.) If you sell this bond in exactly one year, having paid $2,000, and received exactly one coupon payment, what is your total return if competing yields are 12%? Your total return is %. (Round your response to two decimal places)

1 Imagine that the market yield to maturity for three-year bonds in a particular risk class is 12 per cent. You buy a bond in that risk class which offers an annual coupon of 10 per cent for the next three years, with the first payment i one year. The bond will be redeemed at par (£100) in three years. How much would you pay for tl*bond? b If you paid £105 what yield to maurity would you obtain? a