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- What is the yield to maturity on a bond that has a price of $1,600 and pays $100 interest annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at premium, at par, or at discount? How can you tell?If a bond can be purchased for $60 and has a maturity value at the end of 10 years of $500, what is the annual rate of return on the bond?How much does the $1,000 to be received upon a bond's maturity in 8 years add to the bond's price if the appropriate discount rate is 6%?
- You will receive $100 from a savings bond in 3 years. The nominal interest rate is 8%. a. What is the present value of the proceeds from the bond? b. If the inflation rate over the next few years is expected to be 3%, what will the real value of the $100 payoff be in terms of today's dollars? C. What is the real interest rate? d. Show that the real payoff from the bond [from part (b)] discounted at the real interest rate [from part (c)] gives the same present value for the bond as you found in part (a).What is the present value (i.e., price) today of a bond that will pay its owner \$1,000,000$1,000,000 five years from today if the discount rate is 4\%4% per annum?Suppose a State of Califomla bond will pay 1,000 eight years from now. If the going interest rate on these 8 year bonds is 6.0% how much is the bond worth today?
- How much will the coupon payments be of a 25-year $1,000 bond with a 5% coupon rate and quarterly payments?What is the price of a $1000 bond that matures in 2 years when: Interest rates are 2%? Interest rates are 8%?Suppose a bond is priced at $1108, has 18 years remaining until maturity, and has a 8% coupon, paid monthly. What is the amount of the next interest payment (in $ dollars)? $__________.
- You own a bond that will pay $103, 6 years from today, and $211, 8 years from today. Your discount rate is 7%. What is the present value of the bond?A $1000 bond has 15 more years to maturity, an interest rate of 6%, and it pays interest semi-annually. If the current market interest rate is 5%, what is the price of the bond?Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest rate (effective annual interest rate) is 8 percent. How much would you pay for the bond if . the coupon rate is 6 percent and the remaining time to maturity is 10 years? the coupon rate is 10 percent and the remaining time to maturity is 15 years?