The current zero-coupon yield curve for risk-free bonds is as follows: . What is the price per $100 face value of a four-year, zero-coupon, risk-free bond? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) YTM 1 2 3 4 5 4.98% 5.49% 5.73% 5.96% 6.09% Print Done The price per $100 face value of the four-year, zero-coupon, risk-free bond is $ (Round to the nearest cent.)

The current zero-coupon yield curve for risk-free bonds is as follows: . What is the price per $100 face value of a four-year, zero-coupon, risk-free bond? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) YTM 1 2 3 4 5 4.98% 5.49% 5.73% 5.96% 6.09% Print Done The price per $100 face value of the four-year, zero-coupon, risk-free bond is $ (Round to the nearest cent.)

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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The Excel file Portfolio Bond Immunization Data contains information about three bonds. Use this data to: Yield to maturity (Expected/Current) 9% Number of Years to Future Liability 9.00 Future Liability $7,500 Bond 1 Bond 2 Bond 3 Coupon rate 6.00% 7.000% 8.00% Maturity 12 18 24 Face value 1,000 1,000 1,000 Compute the amount to be invested to meet the future liability noted in the data. This future liability is due in 9 years. Find a combination of Bond 1 and Bond 2 having a target duration of 9 years. Find a combination of Bond 1 and Bond 3 having a target duration of 9 years. Perform an analysis using a data table and an accompanying graph to determine which portfolio would be preferred to attempt to immunize this obligation. Construct a data table by varying the yield to maturity that shows the value of each portfolio at the end of 9 years. Based on your data table, construct a graph that demonstrates the performance of these…
Bond prices. Price the bonds from the following table with semiannual coupon payments: a. Find the price for the bond in the following table: (Round to the nearest cent.) Years to Yield to Par Value $1,000.00 Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Yield to Maturity 8% Par Value Coupon Rate $1,000.00 $1,000.00 $5,000.00 $1,000.00 5% 7% 6% 9% Print Years to Maturity 20 30 10 10 HTTP Done 5% 9% 11% Price ? ? ? ? - X
a. Find the price for the bond in the following table: (Round to the Years to Data Table Cancel Coupon Rate 12% Par Value Maturity $1,000.00 30 (Click on the following icon in order to copy its contents into a spreadsheet.) Yield to Years to Maturity Maturity 12% Par Value Coupon Rate Price $1,000.00 $5,000.00 12% 30 11% 15 11% $5,000.00 10% 10 6% $1,000.00 8% 20 7% Print Done
4. Suppose the current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) YTM 1 3 4 3.25% 3.50% 3.90% 4.25% 4.40% The price per $100 face value of a three-year, zero-coupon, risk-free bond is closest to: A) $93.80 B) $90.06 C) $89.16 D) $86.39
***YTC, YTM, and holding period yield they all refer to the r in the formula: P=C*[1-1/(1+r)^t]/r + F/(1+r)^t. They are just different expressions under different circumstances. 9. What is the yield to call (YTC) of a 30-year 6% bond selling for $940? The call deferment period for the bond is 10 years. Call premium=30. [Hint: It means that your N=10*2=20, and your face value=1030] 10. What is the yield to call (YTC) of a 20-year 8% bond selling for $1030? The call deferment period for the bond is 5 years. Call premium=40. [Hint: It means that your N=5*2=10, and your face value=1040] 11. Still considering the same bond as question 10, suppose you buy it today, but expect to sell it in 2 years at a YTM=4%. That is, you expect the yield to maturity on this bond to be 4% when you sell it in 2 years. What price do you expect to sell it for? What is your expected holding period yield if you buy it today and sell it at the expected sell price? 12. What is the holding period yield on a 30-year…
Use the same set of data to answer questions 13-15. Complete your calculation in Excel. Par value Coupon rate Frequency 2 per year Yield-to-maturity 6% Term to maturity 3 years $102.74 What's the price of the bond? $106.81 $100.00 $97.62 4% $94.58
Explain why are the bond prices for A and B different or the same? Explain your answer clearly.
Compute yield-to-maturity for the following zero-coupon bonds: 1-year zero-coupon bond, traded currently at 980 dollars 2-years zero-coupon bond, traded currently at 920 dollars 3-years zero-coupon bond, traded currently at 840 dollars Assume that all 3 bonds have the same nominal: 1000 dollars. Using YTMs calculated plot the yield curve.
27. The following is a list of YTM(yield to maturity) of coupon bonds with different maturities. Maturity (years) YTM 1 2% 2 2.5% 3 3% 4.5% 4 5 6% Please find the forward rates from year 2 to year 4 (3 years). Short Answer/1 S Attachment Upload
Finance question :- the current yield curve for default-free zero coupon bonds are: 1-year 7%; 2-year 8%; 3-year 9%. after one year, what will be the ytm of a bond with 2 years left till matuirty if market expectations are accurate a. 9.01% b. 9.51% c. 10.01% d. 13.02% e. none of the above
Yield to maturity. What is the yield of each of the following bonds, , if interest (coupon) is paid semiannually?
Please see attached. Defintion: Coupon is the regular interest payment of a bond.

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