Company Z is considering the purchase of a 20 year non-callable bond with a coupon rate of 6.70%. The bond has a face value of $1,000 and it makes SEMIANNUAL coupon payments. If the required yield to maturity on this investment is 8.20%, what is the maximum price that should be paid for this bond today?                                          Group of answer choices $725.68 $530.82 $811.05 $887.89 $853.74

Based on your risk assessment, you require an 8% rate of return on ZWT Inc. bond. The term-to-maturity is 20 years and the coupon rate is 59% paid semiannually. The YTM is 12%. What is the current market price of the bond? А. S703.11 В. $535.98 C. $473.38 D. $396.24 E. S834.54

Suppose you want to purchase a bond with a $1,000 par value maturing in 10 years with a 12 % annual coupon interest rate, and has market interest rate of 8%.   What’s the price or value of this bond?   Select one: a. $1,000 b. $1,268.4 c. $805.20 d. $851.8

A zero-coupon bond has a yield to maturity of 6% and a par value of $1000.  If the bond matures in 15 years, it should sell for a price of __________ today.   Group of answer choices   A. $468.84 B. $555.79 C. $463.18 D. $417.27 E. $422.35

7. A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to maturity. If the YTM is 6.1%, which of the following would be closest to the price this bond will trade at? A) $4937 B) $5760 C) $6582 D) $4114

B

42. Suppose in 2019 you by two year $1,000 face-value 3% coupon bond for $900. In 2020, interes rates decrease to 2%. If you decide to sell your bond in 2020, what will be the selling price of your bond and one-year rate of return for you? A. $1020; 20% B. $918; 5.3% C. $930; -2.1% D. $1,009.8; 15.5%

Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 7.85%. If the yield to maturity for the bond is 8.42%, what will the price of the bond be? Answer format: Currency: Round to: 2 decimal places. C unanswered not_submitted Attempts Remaining: Infinity Submit #4 What is the value today of a money machine that will pay $1,077.00 per year for 19.00 years? Assume the first payment is made 5.00 years from today and the interest rate is 14.00%. Submit Answer format: Currency: Round to: 2 decimal places.

How to solve this?

3. You are given the following spot rates: Term Spot rate 1 5.00% 2 6.59% 3 6.80% 4 7.00% One year from now, you are considering the purchase of a 3-year zero-coupon bond with a par value of $1,000. What price would you pay for the bond in one year?