Diamond Corporation is planning a bond issue with an escalating coupon rate. The annual coupon rate will be 47s for the first 2 years, 57% for the subsequent 3 years, and 67% for the final 4 years. If bonds of this risk are yielding 6.3, estimate the bond's current price Face value of the bond is $1,000. (Round your answer to the nearest cent) Bond's current price S

A $1,000 bond has a coupon of 8 percent and matures after ten years. Assume that the bond pays interest annually. What would be the bond's price if comparable debt yields 9 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $   What would be the price if comparable debt yields 9 percent and the bond matures after five years? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $   Why are the prices different in a and b?The price of the bond in a is than the price of the bond in b as the principal payment of the bond in a is than the principal payment of the bond in b (in time). What are the current yields and the yields to maturity in a and b? Round your answers to two decimal places. The bond matures after ten years: CY:  %YTM:  % The bond matures after five years: CY:  %YTM:  %

Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.1% (annual payments). The yield to maturity on this bond when it was issued was 6.4%. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? After the first coupon payment, the price of the bond will be $. (Round to the nearest cent.)

QWE wishes to issue a perpetual callable bond that pays 7.4% annual coupon. The current interest rate is 7.4%. Next year, the interest rate will be 3.3% or 8.9% with equal probability. The bond is callable at $1,050, and it will be called if the interest rate drops to 3.3%. What is the issue price of this callable bond?

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10% annual coupon. Bond L matures in 19 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 19 more payments are to be made on Bond L. What will the value of the Bond L be if the going interest rate is 4%? Round your answer to the nearest cent.$ What will the value of the Bond S be if the going interest rate is 4%? Round your answer to the nearest cent.$ What will the value of the Bond L be if the going interest rate is 10%? Round your answer to the nearest cent.$ What will the value of the Bond S be if the going interest rate is 10%? Round your answer to the nearest cent.$ What will the value of the Bond L be if the going interest rate is 12%? Round your answer to the nearest cent.$ What will the value of the Bond S be if the going interest rate is 12%? Round your answer to the nearest cent

A 30-year maturity bond with a face value of $1,000 making annual coupon payments with a coupon rate of 12% has a duration of 11.54 years and a convexity of 192.4. The bond currently sells at a yield to maturity of 8%. a. What is the current price of this bond? b. What would be the price of the bond if the yield falls to 7%? What price (if y = 7%) would be predicted by the duration rule? d. What price would be predicted by the duration-with-convexity rule? e. What is the percent error for each rule? What do you conclude about the accuracy of the two rules? f. Repeat your analysis if the bond's yield to maturity increases to 9%. Are your conclusions about the accuracy of the two rules consistent with your answers to parts b. to e. above?

Bondo is issuing a new 13.0-year bond at a face value of $1,000 with a coupon rate of 9.0%. Coupons are semi-annual. What should the market price of these bonds be if the yield to maturity is 2.0%?

Consider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the rate of return of the bond?     10%     0%     -10%     20%

A $1,000 bond has a 6.5 percent coupon and matures after ten years. If current interest rates are 8 percent, what should be the price of the bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $   If after six years interest rates are still 8 percent, what should be the price of the bond? Use Appendix B and Appendix D to answer the question. Assume that the bond pays interest annually. Round your answer to the nearest dollar. $   Change the interest rate in a and b to 6 percent and rework your answers. Assume that the bond pays interest annually. Round your answers to the nearest dollar. Price of the bond (ten years to maturity): $  Price of the bond (four years to maturity): $

A bond has 10 years remaining to maturity, pays annual coupons (yesterday) of $6, and has a face value of $100. The current price of the bond is $125.591 and the price next year is expected to be $123.358. (Interest rates are not expected to change over the coming year.) What is the yield to maturity on the bond?