Question 251 pts According to the arbitrage principle on bonds, the price of a 10-year discount bond this year will be equal to: Group of answer choices The present value of a 9-year bond next year The present value of the face-value payment collected in 10 years All of these options The present value of a 1-year bond in nine years The present value of 5-year bond in five years

Question content area top Part 1 ​(Yield to​ maturity)  A​ bond's market price is ​$1,200. It has a ​$1,000 par​ value, will mature in 12 ​years, and has a coupon interest rate of 8 percent annual​ interest, but makes its interest payments semiannually. What is the​ bond's yield to​ maturity? What happens to the​ bond's yield to maturity if the bond matures in 24 ​years? What if it matures in 6 ​years?       Question content area bottom Part 1 a.  The​ bond's yield to maturity if it matures in 12 years is enter your response here​%. ​ (Round to two decimal​ places.) Part 2 b.  The​ bond's yield to maturity if it matures in 24 years is enter your response here​%. ​ (Round to two decimal​ places.) Part 3 c.  The​ bond's yield to maturity if it matures in 6 years is enter your response here​%. ​ (Round to two decimal​ places.)

Question 3 A bond has a face value or par value of $1000 and will mature at par in 10 years. The coupon rate is 10% compounded semi-annually. The yield rate is 8% compounded semi-annually. Find the excess of the semi-annual coupon payment over the required semi-annual yield. O a $10 Ob $100 Ос $20 Od $80

QUESTION 15 Suppose that all investors expect that the interest rates for the 4 years will be as follows. What is the price of a 3-year zero coupon bond with par-$1,000? Year 1-Year Forward rate 4.6% 2 4.9% 3 5.2% 4 5.5% O a. $1,000.00 Ob. $866.32 Oc. $858.92 Od. $821.15

A bond has the following terms: Principal amount $1,000 Semi-annual interest $45 Maturity 15 years a. What is the bond's price if comparable debt yields 11%? b. What would be the price if comparable debt yields 11% and the bond matures after ten years? c. What would be the bond's price in a. and b. if interest rates declined to 8 % ?

Maturity (years)      1            2         3        4         5Zero-coupon YTM 4.6%   5.0%    5.4%    5.8%    6.1%  What is the price today of two-year, default-free security with a face value of $1000 and an annual coupon rate of 6%? Does this bond trade at a discount, at par, or at a premium?