Consider a 15-year semiannual floating rate bond with coupon rate determined with the following formula: Coupon rate = reference rate + 65bps What’s the discount margin of the bond if the bond price is 99.5730 and current reference rate is 9%?

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A: Step 1:Step 2:Step 3:Step 4:

Q: 24. A P1M 6% annual coupon bond has been issued at a price of 95. Its maturity is 4 years. Answer…

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Q: Consider the coupon bond issued by XYZinc Term:3years Payment:175 Facevalue:500 Currently the…

A: Bond's risk-free rate and its price will always be inversely related with each other.

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A: Given data; face value = $1000 coupon rate = 5% yield to maturity = 3.5% years to maturity = 15…

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A: Value of the bond can be determined by the cumulative present value of the coupon amount till…

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Q: Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for…

A: Par value = $1000 Coupon rate = 8.5% Semi annual coupon amount = 1000*0.085/2 = $42.50 Years to…

Q: tations theory suggests that under certain conditions all bonds outstanding, especially Treasury…

A: Zero coupon do not pay any coupon during the life of bond but pay only face value of bond on…

Q: The market risk premium is 5.0 percent, and the risk-free rate is 4.0 percent. If the expected…

A: Market risk Premium = mrp = 5%Risk Free rate = rf = 4%Expected Rate of return = R = 5.5%Beta = b = ?

Q: Suppose that a 12-year bond pays semiannual coupons that increase by 4 dollars with each coupon. If…

A: Maturity period: 12Number of payments per year: 2First coupon: 30Growth in dollars per coupon:…

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A: The government issues debt instruments called Treasury Bonds. By acquiring a bond at a certain…

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A: Bond is a fixed interest bearing instrument that is issued by the company for funds  and has a…

Q: Consider a​ zero-coupon bond with a​ $1000 face value and 8 years left until maturity. If the YTM of…

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Q: Consider the market rates for the maturities 1, 2, and 3 years respectively in the table below. What…

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Q: A semiannual payment bond with a $1,000 par has a 10% coupon rate, a 6% YTM, and 5 years to…

A: Semiannual coupon amount = $50 (i.e. $1000 * 0.10 / 2)Semiannual maturity period = 10 (i.e. 5 years…

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A: Given that the bond pays a coupon rate of 4.3% annually and matures in 2 years, let's denote:C =…

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Q: 5)Considering the following: 8 year, semi-annual bond, 0.095 YTM, 997 current price. Par is 1000…

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A: 2 Year Bond 1 year from now = (1+rate 3 )^3 / (1+rate 2)^1

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A: Assuming i is the annual effective rate and i(4) is the effective quarterly rate. (1+i) =…

Q: A bond that pays interest semiannual has a price of 981.45 and semiannual coupon payment of 28.50.…

A: Semiannual coupon amount = 28.50 Current price = 981.45 Current yield = ?

Q: Consider the following coupon bond issued by XYZ.inc Term: 1 year Payment: 100 Face Value: 1,500…

A: Required return = Risk free rate + security risk premium

Q: 1) ( s) A four-year bond with a yield of 10% (continuously compounded) pays an 20% coupon at the end…

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Q: A coupon bond pays this amount every 6 months;   $             30.00 bgs         for the number of…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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Q: calculate the price of a $1,000, 5% bond with 4 years to maturity with 6.5 % market interest rates.…

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A: We are required to find the forward rate one year from now. (1+r1)*(1+f)=(1+r2)2where r1 =2.60% zero…

Q: If the YTM on a bond is 17.5 %, what will be the periodic rate assuming the bond is paying coupons…

A: YTM = 17.5% Number of coupon payment per year = 2

Q: Consider a 26-year bond with 6 percent annual coupon payments. The market rate (YTM) is 8.6 percent…

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