Suppose you purchase a five-year, 12 percent coupon bond (paid annually) that is priced to yield 10 percent. The face value of the bond is $1,000. Calculate the maturity value of the bond.

You purchase 6,500 bonds with a par value of $1,000 for $981 each. The bonds have a coupon rate of 10.4 percent paid semiannually and mature in 10 years. How much will you receive on the next coupon date? How much will you receive when the bonds mature?

A bond with 10 years to maturity has a face value of $1,000. The bond can be called in four years for $1050. The bond pays a 6 percent semiannual coupon and the bond has a 1.1 percent nominal yield to maturity. What is the price of the bond today assuming that it will be called?

Suppose you purchased a ten-year, 8% coupon bond(annual coupon payment) at $980. Two years later, you decide to take a vacation and sell the bond to acquire the necessary funds. At the time you sell the bond, eight-year bonds with similar characteristics sell for yields of 9%. What is your realized yield on the bond?

Assume you buy a five-year, $1,000 par value bond with a 6% coupon and a 7% yield. Immediately after you acquire the bond, the yield increases to 8% and remains there until maturity. Calculate the realised horizon yield on a bond that you intend to keep till maturity. Annual interest is paid.

Calculate the value of a $1,000 bond which has 10 years until maturity and pays annual interest at an annual coupon rate of 10 percent. The required return on similar-risk bonds is 12 percent.

Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for four years and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 4.01% when you purchased and sold the bond, a. What cash flows will you pay and receive from your investment in the bond per $100 face value? b. What is the internal rate of return of your investment? Note: Assume annual compounding. The cash flow at time 1-3 is $ (Round to the nearest cent. Enter a cash outflow as a negative number.) (Round to the nearest cent. Enter a cash outflow as a negative number.) The cash outflow at time 0 is $ The total cash flow at time 4 (after the fourth coupon) is $ negative number.) b. What is the internal rate of return of your investment? (Round to the nearest cent. Enter a cash outflow as a

You purchased a coupon bond that had a maturity of 20 years. The annual coupon interest rate was 10% paid annually, and the par value was $1,000. At the time you purchased the bond, the yield to maturity on the bond was 9%. You sold the bond one year later after receiving the first interest payment. The yield to maturity was 10% when you sold the bond. Calculate the purchase price of the bond. Calculate the selling price of the bond that you received one year later. Calculate the rate of return for the one-year holding period.

Consider a bond with one year remaining to maturity, a $1,000 face value, an 8 percent coupon rate (paid semi-annually), and an interest rate (either required rate of return or yield to maturity) of 20 percent. What is the duration of the bond?

Calculate the prices of the following bonds. Assume the              face value in each case is $1 000. c)A 12% p.a. coupon rate, 20 years to maturity and a yield of 10% p.a.