Consider a corporate bond with a $1000 face value, 10% coupon with semiannual coupon payments, 8 years until maturity, and a YTM (APR) of 8 %. It has been 50 days since the last coupon payment was made and there are 182 days in the current coupon period. a) What is the clean price for this bond? b) What is the dirty (cash) price?

Consider a corporate bond with a $1000 face value, 10% coupon with semiannual coupon payments, 8 years until maturity, and a YTM (APR) of 8 %. It has been 50 days since the last coupon payment was made and there are 182 days in the current coupon period. a) What is the clean price for this bond? b) What is the dirty (cash) price?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for $1,034.45. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.9% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is 8 %. (Round to two decimal places.) b. If the bond's yield to maturity changes to 9.9% APR, what will be the bond's price? The new price for the bond is S. (Round to the nearest cent.)
Suppose a 10-year, $1,000 bond with a coupon rate of 8.9% and semiannual coupons is trading for $1,035.75. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.9% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.)
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A bond with $1000 face value and $50 annual coupon payments is currently being priced at $1.175. What is the bond coupon rate?
Suppose a 10-year, $1,000 bond with a coupon rate of 8.8% and semiannual coupons is trading for $1,034.19. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.9% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is ☐ %. (Round to two decimal places.)
Suppose that a bond pays semiannual coupons in the sequence 25, 30, 25, 35, 25, 40, ..., 25, 85. If the redemption value is 2500 dollars and the yield rate is 8.6 percent convertible semiannually, what is the price of the bond? Answer= dollars.
Compute the price of a risk-free bond with a face value of $1,000 that has seven years left to maturity, a coupon rate of 5%, and annual interest payments. Assume it just made a coupon payment (i.e., it has seven annual payments left). The current term structure of risk-free rates is provided below. Face value Coupon rate $ 1,000.00 5.00% Term structure Maturity 1 2 3 4 5 6 7 Risk-free yields 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Coupon payment Face value Cash flows PV (CF) Price
What is the current value of a 30-year bond making semi-annual coupon payments that has a face value of $1,000 and a coupon rate of 8%, if the YTM is 4%, how much does the bond currently sell for? Does the bond sell at a discount, premium, or at face value? Reference the below formulas when solving the problem above: PV = FV / (1+r)^t FV = PV(1+r)^t FVA = PMT(((1+r)^t) -1) / r FVA = PMT((1+(r/12)^t(12))-1)/(r/12) PVA = PMT(((1-(1+r)^-t) / r)) PVA = PMT((1-(1+(r/12))^-t(12)))/(r/12) Bo = PMT ((1-(1+r/2)^-t(2))) / r/2 + FV / (1+r/2)^t(2)
may know the answer?
a) A bond has 15 years left to maturity. The annual coupon rate is 9%, and face value is $1,000. If the YTM = 12%, what is the bond price? b) An annual coupon bond has coupon payment = $500, YTM =8%, and maturity = 5 years. If the price ofthe bond is $9,400, what must be the face value? c)A bond has 15 years left to maturity. The semi-annual coupon rate is 9%, and face value is $1,000. If the YTM = 12%, what is the bond price? for all 3 parts please show all calculations via excel, and how you got them in excel (formulas). thanks.

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