Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding.Note: Round your answers to 2 decimal places.$GA$$$$Price450.00500.00450.00360.33456.97Maturity(years)10.0020.0020.0010.0015.00Bond-EquivalentYield to Maturity%%%11.50 %10.20 %6.80 %

Zero-coupon bond refers to the security on which no interest is to be charged but trades at ar…

Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. Note: Round your answers to 2 decimal places. $ $ $ $ $ Price 450.00 500.00 450.00 360.33 456.97 Maturity (years) 10.00 20.00 20.00 10.00 15.00 Bond-Equivalent Yield to Maturity % % % 11.50 % 10.20 % 6.80 %

Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. Note: Round your answers to 2 decimal places. $ $ $ $ $ Price 450.00 500.00 450.00 360.33 456.97 Maturity (years) 10.00 20.00 20.00 10.00 15.00 Bond-Equivalent Yield to Maturity % % % 11.50 % 10.20 % 6.80 %

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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Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. (Round your answers to 2 decimal places.) Maturity (years) Bond-Equivalent Yield to Maturity Price $ 495.00 10.00 % $ 510.00 15.00 % $ 530.00 10.00 % 17.00 7.90 % 12.00 10.40 % 2$ 623.35 8.00 %
Applying Time Value of Money Concepts Complete the missing information in the table below. Assume that all bonds pay interest semiannually. Do not use negative signs with answer. Round percentages to one decimal place (ex. 0.0345 = 3.5%). Round all other values to the nearest whole number. Annual Yield Years to Coupon Issue Maturity Rate Face value Proceeds Firm 1 8.00% 15 7.00% $500,000 $ Firm 2 3.00% 10 0.00% $ $705,347 Firm 3 6.50% 5.00% $500,000 $458,353 Firm 4 % 12 3.50% $1,000,000 $1,114,103 Firm 5 0.80% 20 2.00% $700,000 $
O ook int ences You find the following Treasury bond quotes. To calculate the number of years until maturity, assu of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.052 6.143 Maturity Month/Year May 33 May 36 May 42 Yield to maturity Asked Bid 103.4560 103.5288 104.4900 104.6357 ?? Change Ask Yield +.3248 5.00 % +.4245 +.5353 In the above table, find the Treasury bond that matures in May 2036. What is your yield to matur Note: Do not round intermediate calculations and enter your answer as a percent rounded to 5.919 ?? 3.951
Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. Note: Round your answers to 2 decimal places. Price Maturity (years) Bond-Equivalent Yield to Maturity $ 547.50 10.00 % $ 450.00 15.00 % $ 600.00 10.00 % $ 372.91 8.00 11.60 % 15.00 3.10 % $ 523.90 7.60%
Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) Price (%) 3 86.50 5. 105.50 9. 136.50 a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Bond Coupon (%) YTM 3. % 9. % b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond Coupon (%) Duration years years 9. years
Using the following information, determine the maturity risk premium on 10 year bonds: Rate % inflation 1.99 T-bill 5.00 10y T-Bond 6.00 10y AAA Corporate 6.44 10y AA Corporate 7.59 note: your answer should be to 2 decimal places. So, if your answer is 3.253%, for example, then enter 3.25 without the percent sign.
g bond if interest (coupon) is paid semiannually? (Round to two decimal places.) Years to Maturity i Data Table Rate 20 (Click on the following icon in order to copy its contents into a spreadsheet.) Yeld to Maturity $1.000,00 $1.000 00 S5.000.00 $1.000.00 6% 12% 7% 8% Years to Mahurity 20 10 20 15 Price $800 00 $1.000.00 $3.110.00 $1,130.00 Print Done answer.box and then click Check Answer
The current yield curve for risk-free zero-coupon bonds is as follows: Maturity (years) YTM (%) 1 10 2. 11 3 12 (Round your final answers to 2 decimal places. Enter percentages "as-Is", without the % sign, prices without the $ sign.) a) What are the 1-year forward rates implied by the spot rates? (i.e., f2, f3) 12 % f3 b) If next year, you decide to buy a 2-year zero-coupon bond how much would you need to pay? What will be the YTM offered (next year)? Assume that the expectations hypothesis is correct, and the market expectations are accurate. All Face Values are equal to $1000. Price $ ΥTM c) If you were to buy a 3-year zero-coupon bond today and sell it next year, what would your holding period return be? (Again, assume that expectations theory holds.) HPR
Consider a bond with maturity 2 year, 100 face value, coupon 3.60%, and yield 7.20%. Compute a dollar duration numerically using a dy =0.001%, Report you result with two digits decimal accuracy and the correct sign. Example:-185.95 Blank Excel Worksheet Your Answer: Answer
a) calculate the value of each of the bonds shown in the following table, all of which pay interest monthly. Bond Par value coupon interest rate yeras to maturity required stated annual return A $1000 10% 12 8% B $1000 12% 20 12% C $500 12% 5 14% D $1000 14% 10 10% E $100 6% 4 14%
To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a $1,000 par value and pay semiannual coupons. Rate ?? 3.850 4.125 Maturity Month/Year May 29 May 32 May 38 Coupon rate Bid 102.725 103.168 ?? Asked 102.915 103.823 ?? % Change Ask Yield +.3204 +.4513 +.6821 In the above table, find the Treasury bond that matures in May 2029. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 2.18 ?? 3.87
The current zero-coupon yield curve for risk-free bonds is as follows: . What is the price per $100 face value of a four-year, zero-coupon, risk-free bond? Data table (Click on the following icon D in order to copy its contents into a spreadsheet.) Maturity (years) 1 2 4 YTM 5.02% 5.46% 5.79% 5.99% 6.03% Print Done

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