Followings are parts of today's spot interest rates (yes, they can be of a fraction of a year), quoted as effective annual rates. EAR Maturity Effective Annual Rate 1-month 5-month 18-month 1% 6% 10% There is a bond which pays $10 in the end of the first month, $50 in the end of the fifth month, and $1000 in the end of the eighteenth month. (a) What are the holding period returns and APR for each maturity. (b) What is the price of the bond?

If a If a bond pays $90 interest annually, matures after ten years and costs $1,100. What is the current Yield.

You issued debt in the form of bonds, with a face value of $1,000, and have 9 years until maturity. The bonds have an annual coupon rate of 7.8%, which are paid semiannually. a. The current price is $1,100. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g 12.34.) b. The tax rate is 22%. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.)

A government bond pays coupons 11 times a year at an annual rate of 7.5%, has a face value of $1,500, and matures in 11 years. If the current market interest rate is 8.6% compounded annually (i.e., this is an effective rate), 1. What is the periodic market interest rate? (i.e., the rate every 1 th of a year) % (Give answer as a percentage to 6 decimal places) 2. What is the coupon amount paid each time? CAN $ (Give answer to 4 decimal places) 3. What is the current market price of the bond? $ (Give answer to 4 decimal places)

The current 1-year, 2-year, and 3 year bond interest rates are 4%, 5%, and 6%, respectively. The expectations theory of the term structure predicts that the expected 1-year bond interest rate is ___% next year and _____% the year after.

Calculate the value of a 2-year 3.5% annual pay bond given the interest rate below. What is the implied 3-year spot rate? Time Period Forward Rate z1 0.80% 1f1 1.12% 1f2 3.94% 1f3 3.28% 1f4 3.14%

Find the Macaulay duration and the modified duration of a 15​-year, 7.5​% corporate bond priced to yield 5.5​%. According to the modified duration of this​ bond, how much of a price change would this bond incur if market yields rose to 6.5​%? Using annual​ compounding, calculate the price of this bond in one year if rates do rise to 6.5​%. How does this price change compare to that predicted by the modified​ duration? Explain the difference.

A fixed-interest instrument is repaid at par in precisely eight years and pays coupons at a rate of four percent yearly in arrears.Determine the bond's DISCOUNTED MEAN TERM (DMT) (in years) at an effective interest rate of 6% annually. Correct answer= 6.9209 (using formulas, no tables)

Bhupatbhai

A bond has the following terms: Principal amount $1,000 Semi-annual interest $45 Maturity 15 years a. What is the bond's price if comparable debt yields 11%? b. What would be the price if comparable debt yields 11% and the bond matures after ten years? c. What would be the bond's price in a. and b. if interest rates declined to 8 % ?