Assume today is the 2nd January 2020. Central Bank of Oman issued a zero coupon bond which will mature on 1st January 2023. The bond promises to pay 4000 Rials on maturity. Assuming required rate of return is 8%, what is the present value of the bond ? (assume yearly compounding) Select one: O a. 4000 O b. 0 O c. 2940 O d. None of these O e. 3175
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- This question is based on the following information on a bond: [ Bond Principal: R 5000000 Issue date: 30 June 2021 Maturity date: 15 September 2026 Coupon rate: 7.00% Coupon payment dates: 30 June and 31 December. The bond register closes one month before the coupon payment dates]. Suppose that the bond traded at a market price of R 103.475% for settlement on 10 December 2021 . The number of days from 30 June 2021 to 10 December 2021 is 163 and the number of days from 10 December 2021 to 31 December 2021 is 21 . What is the running yield on the bond? (note: if the answer is 5.55%, answer 5.55). Answer: AnswerIt is 25 July 2022; you observe two treasury bills Maturity 25 September 2022, Price 99.7985 Maturity 25 March 2023 , Price 98.3855 1) What would be a fair price for a bond, maturing on 25 March 2023, paying a 5% per annum coupon rate, with a semi-annual coupon? 2) Now suppose that you observed a bond, maturing on 25 Septem- ber 2023, paying a 1% per annum coupon rate (with semi-annual coupons), trading at a yield to maturity of 2.75%. Use the DMO formula to calculate the bond’s price.Suppose that a U.S. Treasury bond maturing April 30, 2020 is purchased with a settlement date of April 15, 2019. The coupon rate is 1.125%, the required yield is 1.5%. The dirty (full) price (per 100 par value) of this bond is closest to: (Hint: there are 15 days until the next coupon date and 182 days in the coupon period during which the bond is purchased) 99.614 100.130 100.646 101.678
- At the end of March 2019, a Zambian corporate bond had a coupon rate of 6%, a par (face) value of K1,000 and will mature in March 2022. Market rates of interest are currently 4.5%.Required:A. Using the data given above and assuming semi-annual coupons and a semi-annual discount rate equal to 2.25%, calculate the value of the corporate bond.B. Calculate the Macaulay duration of the Zambian corporate bond described above assuming annual coupons and discount rate.C. Explain Macaulay duration and describe the main characteristics of Macaulay duration in relation to bonds.D. Explain modified duration and explain the limitations of using this measureA Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.35 percent, and the bond has a yield to maturity of 4.52 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations, Round your answers to 4 decimal places.) Answer is not complete. Macaulay duration Modified duration 12.2800Consider the following $1,000 face value bond which makes semi-annual coupon payments, Bond Coupon rate Price Maturity Settlement Date Bank of Montreal 3.5% 101.71 December 1, 2030 January 23, 2019 What is the total price you would pay for this bond? Enter your answer rounded to two decimal places. Number
- 3) On August 6, 2023, the Bank of Mexico (BANXICO) placed bonds with a nominal value of 10 pesos for 120 days and at a simple discount rate of 3.57% annually. What was the rate of return obtained by bonds buyers? options: 5.32 8.74 1.05 3.61Do not copy from other source Assume that the Blackmores Group would like to replace its bank loan facilities (2019) with a new issuing of bonds. Assume that the issue will have a coupon rate of 1.5% with a 10-year maturity. Assume these are semi-annual coupon bonds and each has a face value of $1.000 and the required rates of return for similar bonds in the market is 2.5%. What would be the issuing price of these bonds? How many bonds Blackmores will have to issue in order to replace its bank facilities?1. It is 25 July 2022; you observe two treasury bills Price 99.7985 25 March 2023 98.3855 Maturity 25 September 2022 (a) What are appropriate discount factors for 2 months and 8 months? (b) What are the spot rates, with semi-annual compounding, for 2 months and 8 months? (c) What would be a fair price for a bond, maturing on 25 March 2023, paying a 5% per annum coupon rate, with a semi-annual coupon? (d) Now suppose that you observed a bond, maturing on 25 Septem- ber 2023, paying a 1% per annum coupon rate (with semi-annual coupons), trading at a yield to maturity of 2.75%. Use the DMO formula to calculate the bond's price. (e) What is an appropriate discount factor for 25 September 2023? (f) Calculate forward rates (with semi-annual compounding) from 25 September 2022 to 25 March 2023, and from 25 March 2023 to 25 September 2023.
- Today is January 2, 2022, and investors expect the annual nominal risk-free interest rates in 2022 through 2024 to be: Year One-Year Rate (rRF) 2022 2.7 % 2023 1.9 2024 3.8 Assume the bonds have no risks. What is the yield to maturity for Treasury bonds that mature at the end of 2023 (a two-year bond)? Round your answer to one decimal place. __________ % What is the yield to maturity for Treasury bonds that mature at the end of 2024 (a three-year bond)? Round your answer to one decimal place. __________ %A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.50 percent, and the bond has a yield to maturity of 4.73 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration 12.0200What is the market value of Beril Gıda A.Ş.'s bond with a nominal value of USD 12,000, maturity of 5 years and an annual interest payment of 25%, when the desired rate of return is 25%? a) 18000b) 15000c) 12000d) 16000e) 24000