Estimate the yield-to-maturity of a bond with the parameters given below.               Face value  $  1,000.00           Coupon rate 13%           Cost of capital 13%           Years to maturity 4                           Timeline 1 2 3 4   Probability of payment   1 1 0.5 0.5   Promissed payments             Expected payments             PV (payments)             Price of bond                           Yield-to-maturity

You observe the following term structure: 1-year zero-coupon bond 2-year zero-coupon bond 3-year zero-coupon bond 4-year zero-coupon bond Effective Annual Required A Required B YTM Required: a. If you believe that the term structure next year will be the same as today's, calculate the return on (1) the 1-year zero and (ii) the 4- year zero. b. Which bond provides a greater expected 1-year return? 8.3% 8.4 8.5 8.6 Complete this question by entering your answers in the tabs below. One year return on 1-year bond One year return on 4-year bond If you believe that the term structure next year will be the same as today's, calculate the return on (i) the 1-year zero and (ii) the 4-year zero. Note: Do not round intermediate calculations. Round your answers to 1 decimal place. % %

Compute yield-to-maturity for the following zero-coupon bonds: 1-year zero-coupon bond, traded currently at 980 dollars 2-years zero-coupon bond, traded currently at 920 dollars 3-years zero-coupon bond, traded currently at 840 dollars Assume that all 3 bonds have the same nominal: 1000 dollars.   Using YTMs calculated plot the yield curve.

Please answer 6D.

Firm A’s bond coupon rate = 10.20%, a yield to maturity = 10.55%, market price = $850. The annual interest payment =? A) $121.0. B) $102.    C) $102.75.  D) $106.90.

Suppose a 10% 3years bond with a FV of $1000 Spot rates r1= 10%, r2= 12%, r3=13%. Calculate the forward rate required to calculate the bond price using the forward rate 1f2

You are given the following information on two traded bonds making semi-annual coupon payments. Bond Face Value Coupon Maturity Price A $1,000 3% 12 years $850.10 B $1,000 10% 12 years $970.00 Calculate Yield to Maturity (YTM) for bonds A and B.

Prepare a duration table for a coupon bond using the following assumptions: a. $100,000 par value b. 7% coupon rate c. 10-year maturity d. Annual interest payments e. Discount rate of 12%

Suppose the term structure of interest rate is flat. Consider the following four bonds: Bond Term to Maturity (year) Coupon rate YTM 1 5 10% 7% 2 3 7 7 10% O a. 2,3,4,1 O b. 2,1,4,3 O c. 1,2,3,4 O d. 4,3,2,1 3% 3% 7% 4 7 If the yield-to-maturity for all bonds changes by 1%, rank the bonds from the lowest percentage change in price to the largest percentage change in price based on duration approximation. 7% 5%

Prepare a duration table for a zero-coupon bond using the following assumptions: a. $100,000 par value b. 10-year maturity c. Discount Rate of 12%