O The market price of a semi-annual pay bond is $971.90. It has 14.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Show Hint

O The market price of a semi-annual pay bond is $971.90. It has 14.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Show Hint

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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# 1 The market price of a semi-annual pay bond is $983.24. It has 15.00 years to maturity and a coupon rate of 5.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.11%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
#1 The market price of a semi-annual pay bond is $994.42. It has 19.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity %23
The market price of a semi-annual pay bond is $971.75. It has 15.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity %23
Consider the market rates for the maturities 1, 2, and 3 years respectively in the table below. What is the price of a 3-year bond with annual payments, coupon rate equal to 9.50% and face value equal to $68,000. Answer with two decimal digits accuracy. Example: 74929.05 t 1 2 3 R(0,t) 1.95 2.90 4.40 Blank Excel Worksheet Your Answer: Answer
Zero-Coupon Bonds (ZCBS) with maturity in 1 and 5 years are available on the market. Their redemption value is £100, and they sell for £95 (1-year ZCB) and £87 (5-year ZCB). Find the spot rates corresponding to the ZCBS' prices i1 数字 % = i5 数字 % Enter a percentage correct to 2 decimal places Calculate the forward rate 1,5 1,5 = | 数字 % Enter a percentage correct to 2 decimal places
Zero-Coupon Bonds (ZCBS) with maturity in 1 and 5 years are available on the market. Their redemption value is £100, and they sell for £95 (1-year ZCB) and £88 (5-year ZCB). Find the spot rates corresponding to the ZCBs' prices 11 = Number % 15 = Number % Enter a percentage correct to 2 decimal places Calculate the forward rate 1,5 1,5 Number % Enter a percentage correct to 2 decimal places
What are the Modified Duration and Macaulay Duration of the following bond? Coupon Rate = 8% (Semi-annually paid) YTM = 9% Maturity = 2 Years Par Value = 1,000 (Hint: this question is similar to Example 1 and Example 2 on slides) ModD = 1.886 and MacD = 1.805 ModD = 1.784 and MacD = 1.954 ModD = 1.954 and MacD = 1.784 ModD = 1.805 and MacD = 1.886
The current yield on a 1 year treasury bond is. 91% and the current yield on a 2 year treasury bond is 1.36\%. What is the expected yield on a 1 year treasury bond, 1 year from today (forward rate)? Use 100 par value in your calculation. Enter your answer in decimal format (0123), not percentage format (1.23\%). Round to 4 decimal places.
What is the YTM for a zero coupon bond ($1,000 par) maturing 18 months and 15 days from now selling for $900 today. Use semiannual rate approach. A. 7.19% B. 8.41% C. 6.94% D. 6.53% E. 7.81%
# 1 Assume a par value of $1,000. Caspian Sea plans to issue a 5.00 year, annual pay bond that has a coupon rate of 3.00%. If the yield to maturity for the bond is 3.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity %23
ces A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.40% with interest paid annually. If the current market price is $840, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital gain
# 3 The market price of a semi-annual pay bond is $985.76. It has 18.00 years to maturity and a yield to maturity of 7.40%. What is the coupon rate? Submit Answer format: Percentage Round to: 0 decimal places (Example: 9%, % sign required. Will accept decimal format rounded to 2 decimal places (ex: 0.09)) unanswered not_submitted Attempts Remaining: Infinity

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