Prices of zero-coupon bonds reveal the following pattern of forward rates: Year 1 2 3 Forward Rate 8% 11 13 In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $55 with par value $1,000. Required: a. What is the price of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the yield to maturity of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Under the expectations hypothesis, what is the expected realized compound yield of the coupon bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. If you forecast that the yield curve in 1 year will be flat at 8.0%, what is your forecast for the expected rate of return on the coupon bond for the 1-year holding period? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is not complete. $ 952.95 X a. Price b. Yield to maturity c. Realized compound yield d. Holding period return % % %

Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The market price is ​$850 for a 12​-year bond ​($1,000 par​ value) that pays 11 percent annual​ interest, but makes interest payments on a semiannual basis ​(5.5 percent​ semiannually). What is the​ bond's yield to​ maturity?       Question content area bottom Part 1 The​ bond's yield to maturity is enter your response here​%. ​ (Round to two 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

You are given the following information with respect to a non-callable bond: par amount: 1,000 • term to maturity: 4 years annual coupon rate: 8% payable annually. Time 0 1 2 3 1-Year Annual Forward Interest Rates Scenario X Scenario Y 7% 7% 8% 10% 7% 6% 7% 5% Each interest rate scenario has an equal probability of occurring. Calculate the value of the bond (i.e. the expected present value of the bond payments). A 1,000.00 B 1,018.40 C 1,022.80 D 1,030.39 E 1,031.07

Suppose 1-year Treasury bonds yield 4.40% while 2-year T-bonds yield 5.70%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 1-year T-bond expected to be one year from now? Do not round your intermediate calculations. Round your final answer to 2 decimal places. a. 7.02% b. 5.66% c. 5.05% Od. 4.92% e. 7.32%

You are given the following prices of zero coupon bonds per $1.00 of maturity value: Term in years 1 2 3 4 Zero-coupon bond prices 0.9852 0.9701 0.9546 0.9388 Determine the one-year forward rate for year 4 (ie, the one-year forward rate deferred for 3 years. a) 1.629% b) 1.526% c) 1.572% d) 1.729% e) 1.683%

Question Given the following information about a bond, calculate the modified duration of the bond. i) The term-to-maturity is two years. ii) Coupons are payable annually at 5%. iii) The bond is trading at par. Possible Answers A B D 1.859 с 1.928 E 1.881 1.952 Cannot be determined since the yield rate i is not provided.

Please show working   Please answer ALL OF QUESTIONS 1 AND 2   1. A 7% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 7.5219%.a. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent.b. What is the bond's YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answers to two decimal places.    2. Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 18 years to maturity, and a 9% YTM. What is the bond's price? Round your answer to the nearest cent.

Need help with C Approximate yield to maturity   An investor must choose between two bonds:   Bond A pays $90 annual interest and has a market value of $815. It has 15 years to maturity. Bond B pays $81 annual interest and has a market value of $700. It has eight years to maturity.   Assume the par value of the bonds is $1,000.   a. Compute the current yield on both bonds. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Current Yield Bond A11.04% Bond B11.57%   c. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond A is 11.51 percent. What is the approximate yield to maturity on Bond B? The exact yield to maturity? (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2…