Q1) A Zero-Coupon Bond with maturity in 5 years produces a gross yield of 2.2% p.a. effective and has redemption value of £100.Compute the Zero-Coupon Bond's price£ 数字Enter a value correct to 2 decimal placesQ2) A Zero-Coupon Bond with face value £100 has 2 years until maturity. The bond is priced at £87.Calculate the yield to maturity数字%Enter a percentage correct to 2 decimal places.

Given information:Redemption value (face value at maturity): £100Effective yield (gross yield): 2.2%…

Answered: Q1) A Zero-Coupon Bond with maturity in…

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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Q1) A Zero-Coupon Bond with maturity in 12 years produces a gross yield of 3.8% p.a. effective and has redemption value of £100. Compute the Zero-Coupon Bond's price £ 数字 Enter a value correct to 2 decimal places Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £78. Calculate the yield to maturity 数字 Enter a percentage correct to 2 decimal places. %
A zero-coupon bond with face value $1,000 and maturity of five years sells for $741.22. a. What is its yield to maturity? (Round your answer to 2 decimal places.) Yield to maturity % b. What will the yield to maturity be if the price falls to $725? (Round your answer to 2 decimal places.) Yield to maturity %
Q1) A Zero-Coupon Bond with maturity in 15 years produces a gross yield of 2.5% p.a. effective and has redemption value of £100. Compute the Zero-Coupon Bond's price £ Enter a value correct to 2 decimal places Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £87. Calculate the yield to maturity % Enter a percentage correct to 2 decimal places.
Question 1. Duration and Banking Consider a 5-year bond with annual coupon payments. The bond has a face value (prin- cipal) of $100 and sells for $95. Its coupon rate is 3%. (The coupon rate is the ratio between the coupon value and the face value). The face value is paid at the maturity year in addition to the last coupon payment. 1. Calculate the bond's yield to maturity (YTM) and duration using its YTM. 2. Suppose the bond's YTM changes in the same way as a 5-year T-bill interest rate. Use the bond's modified duration to evaluate the relative change in the 5-year bond's value if the interest rate on 5-year T-bills falls by one basis point, that is, by 0.0001. This part was extracted from the balance sheet of the First Bank of Australia: Assets (Billion AUD) Bond 80 Liabilities (Billion AUD) Fixed-rate liabilities 60 where "Bond" here refers to the bond we specified above and the fixed-rate liabilities (banks future payment obligations) have an average duration of 4 years and YTM of…
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 i1 = 数字 % i5 数字 % Enter a percentage correct to 2 decimal places Calculate the forward rate i 1,5 1,5 = 数字 % Enter a percentage correct to 2 decimal places
Consider a bond with maturity 2 year, 100 face value, coupon 3.60%, and yield 7.20%. Compute a dollar duration numerically using a dy =0.001%, Report you result with two digits decimal accuracy and the correct sign. Example:-185.95 Blank Excel Worksheet Your Answer: Answer
P: A 8% coupon, 30-year maturity bond with par value of $1,000. Assume annual interest rate is 8% (1) What is the bond's price using semiannual compounding? (2) Ifr=10%, what is P? r(YTM): Find the YTM for a 8% coupon, 30-year bond selling at $1276.76 (semiannual coupon payments) What is the coupon rate, current yield and YTM of the bond? What is the relationship among them?
A bond with a 9-year duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.50%, you would predict that the new price of the bond will be “approximately” _________. Group of answer choices A. $1,125 B. $1,094 C. $1,035 D. $1,036
A) Price a 5-year 4% semiannual coupon bond if the yield to maturity is 6% (write the price as if par is 100, use 5 decimal places) B) If the yield to maturity for a one year zero coupon bond is 5.2% and the yield to maturity for a 2-year zero coupon bond is 5.8%, what is the implied future short rate from year 1 to 2 (use 5 decimal places, write 3.333% as .03333)?
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