If a bond with a par value of $500 and a call premium of 6% is called in before its maturity date, the firm would have to remit the following to the bondholders: a. $500 b. $530 c. $0 d. None of the above

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The following information about bonds A, B, C, and D are given. Assume that bond prices admit noarbitrage opportunities. What is the convexity of Bond D?Cash Flow at the end ofBond Price Year 1 Year 2 Year 3A 91 100 0 0B 86 0 100 0C 78 0 0 100D ? 5 5 105

Calculating the risk premium on bonds The text presents a formula where (1+1) = (1-p)(1 +i+x) + p(0) where i is the nominal interest rate on a riskless bond x is the risk premium p is the probability of default (bankruptcy) If the probability of bankruptcy is zero, the rate of interest on the risky bond is When the nominal interest rate for a risky borrower is 8% and the nominal policy rate of interest is 3%, the probability of bankruptcy is %. (Round your response to two decimal places.) When the probability of bankruptcy is 6% and the nominal policy rate of interest is 4%, the nominal interest rate for a risky borrower is %. (Round your response to two decimal places.) When the probability of bankruptcy is 11% and the nominal policy rate of interest is 4%, the nominal interest rate for a risky borrower is %. (Round your response to two decimal places.) The formula assumes that payment upon default is zero. In fact, it is often positive. How would you change the formula in this case?…

Please answer both parts

The coupon rate of a bond is typically __________.a. fixed at the time of bond issuanceb.subject to change based on the federal funds ratec.zero in the case of zero - coupon bondsd. Both A and C

please do the compuations and formulas, show it to me explain steps of fianncial calculator C Compute the YTM for a bond with the listed information. Annual Coupon Par Maturity Bond Price Semiannual Coupon Maturity Bond Price Calculation 6,50% $1 000,00 15 ($980,00) N PMT FV PV I/Y YTM

If the YTM on the following bonds are identical except, what is the price of bond B?   Bond A                         Bond B  Face value                  $1,000                          $1,000  Semiannual coupon      $45                               $35 Years to maturity          20                               20 Price                             $1,098.96                     ?

a. Assuming the bonds will be rated​ AA, what will the price of the​ AA-rated bonds​ be? b. How much total principal amount of these bonds must HMK issue to raise $9million​ today, assuming the bonds are AA​ rated? (Because HMK cannot issue a fraction of a​ bond, assume all fractions are rounded to the nearest whole​ number.) c. What must the rating of the bonds be for them to sell at​ par? d. Suppose that when the bonds are​ issued, the price of each bond is $970.43. What is the likely rating of the​ bonds?Are they junk​ bonds? Note​: Assume annual compounding.