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 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

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 12 (5 points) A $1,000 par value, 7.0% annual coupon with a maturity in 13 years currently sells for $ 1,052. What is the bonds current yield? What is the bond's yield to maturity (YTM)? Round your percentages to one decimal place (e.g. 9.4%) Blank # 1 Blank # 2 A/ A/ ব
Question 07 a) Consider a 20 year 7.20% annual coupon bond whose duration is approx. 11 years when required rate of return (yield to maturity) is 7.50%. Prove that this bond is immunized if you hold it for 11 years. b) Consider a 10 year 6.50% annual coupon bond whose duration is 7.50 years when required rate of return (yield to maturity) is 6.50%. Prove that this bond is immunized if you hold it for 7.50 years. Note: Do not use Ms Excel.
What is the bond market price with a face value of $1,000 at yield to maturity of 9% for 10 years with a coupon rate of 8%? 0 $835.82 o $935.82 o $422.40 o $513.42 O none A
QUESTION 18 Suppose you purchase a $1000 face value Zero-coupon bond with a maturity of 30 years and a yield to maturity of 4% quoted with annual compounding What is the current price of the bond? Ⓒa. $1,400.00 O b.$ 308 31 O c. $1,400.21 Od.$ 400.00 Oe.$ 311.29
6
What is the value of $1000 par value 8 3/8% Marriott Corporation bond for the for each of the following required rates of return and assuming that the investor will hold the bond to maturity assume the coupon is paid semiannually (every six months) and the mature the bond matures in three years?a. 6.50%b. 11.30%
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 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

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