Problem 6-28 Bond Yields [LO 2]You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. Allof the bonds have a par value of $1,000 and pay semiannual coupons.Rate??5.6246.283MaturityMonth/YearMay 30May 33May 39Bid Asked.Change Ask Yield103.4716 103.5444 +.3119 6.159104.5056 104.65132777774.191+4389+5509In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.Yield to maturity%

Bond investors should pay close attention to yield to maturity as it provides a useful measure of…

Problem 6-28 Bond Yields [LO 2] You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate 17 5.624 6.203 Maturity Month/Year May 30 May 33 May 39 Asked 183.5444 Yield to maturity Bid 103.4716 184.5056 104.6513 77 77 Change Ask Yield +.3119 6.159 +4389 77 +5509 4.191 In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.

Problem 6-28 Bond Yields [LO 2] You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate 17 5.624 6.203 Maturity Month/Year May 30 May 33 May 39 Asked 183.5444 Yield to maturity Bid 103.4716 184.5056 104.6513 77 77 Change Ask Yield +.3119 6.159 +4389 77 +5509 4.191 In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.

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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QUESTION 1 MaNga Inc. bonds have a current market price of $1,128.87 the bonds have an 9% annual coupon payment, a $1,000 face value, and 12 years left until maturity. The bonds may be called in 3 years at $1,125. What yield might investors expect to eam on these bonds? @7% 4.42% 7.16% 4.33%
Problem 6-23 Real Returns (LO3) Suppose that you buy a TIPS (inflation-indexed) bond with a 2-year maturity and a (real) coupon of 4.4% paid annually. If you buy the bond at its face value of $1,000, and the inflation rate is 8.60% in each year. a. What will be your cash flow in year 1? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Cash flow b. What will be your cash flow in year 2? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Cash flow c. What will be your real rate of return over the two-year period? Note: Enter your answer as a percent rounded to 1 decimal place.
Problem 29 You have until 9:00 PM to complete this assignment. Intro A corporate bond pays interest annually and has 3 years to maturity, a face value of $1,000 and a coupon rate of 3.8%. The bond's current price is $1,002.79. It is callable at a call price of $1,050 in one year. Part 1 What is the bond's yield to maturity? 4+ decimals Save Part 2 What is the bond's yield to call? 3+ decimals Save Attempt 1/1 Attempt 1/1
D & R A1 8 - 1 Question 8. Cheapest-to-Deliver Bond Today is July 1. You hold a November Treasury bond futures contract with a price of 92:15 (i.e., 92 plus [15/32]), with a delivery date of November 15 in the same year. You have identified the two bonds below that could be used for delivery against the futures contract: Bond A Bond B Maturity 26.5 years 31 years Coupon rate 5% 8.5% Asking price 93:2 144:13 Coupon dates April 15, October 15 June 15, December 15 Callable? No No Assume that the next year is not a leap year, and that the market repo rate is 5.50%. Find the conversion factors for Bond A and Bond B. Use the downloadable Excel spreadsheet on the Chicago Mercantile Exchange (CME) website: http://www.cmegroup.com/trading/interest-rates/us-treasury-futures-conversion-factor-lookup-tables.html.
Q 20 Calculate the price of a 5.7 percent coupon bond with 22 years left to maturity and a market interest rate of 6.5 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.) BOND PRICE_______ Is this a discount or premium bond?multiple choice premium bond discount bond
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11 3 N Pont You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Hilliams Company (HICO) Coupon 7.200 7.300 77 Coupon rate Maturity January 15, 2039 January 15, 2033 January 15, 2035 Last Price Last Yield. 94.399 77 94.915 ?? 6.38 7,20 Estimated S Volume (0000) 57,380 48,959 43,820 What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.
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Question 5 0/1 Oscorp has just issued its Norman Special Long Bond. The bonds have a maturity of 25 years, a coupon rate of 0.50% and pay the coupon on a semi-annual basis. The face value of the bond is $1000. The bonds are trading at a YTM of 5.00%. What is the current yield of these? (Enter your answer as a % accurate to two decimal points. DO NOT add a % symbol or any extraneous punctuation.)
Question 10 OPS Invest PLC issues a 4-year maturity 9% Coupon Bonds to finance a sustainable solar energy project in yield to maturity is now 10%. The par value is $1,000. Required a. Calculate the price of the OPS Invest PLC Bond (as per the table below )[ Year Total b. Is this a premium, discount or par bond? Why? c. What is the effect of inflation on the bond price?!
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