The market price of a semi-annual pay bond is $983.56. It has 10.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit

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A: The price of the bond is what the investors are willing to pay today.

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A: Calculate the current market price as follows: Current market price = Face value / (1+rate)^years

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Q: The market price of a semi-annual pay bond is $990.08. It has 17.00 years to maturity and a coupon…

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Q: A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value of $1000 and makes…

A: Please note that coupons are being paid semi annually. Hence, the period here is half year. All the…

Q: Assume that a 15 year $1,000 bond pays annual coupon interest amounts of $117 per year is currently…

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Q: Face value of the Bond = $1000, Annual Coupon Payment = 10%, YTM = 12%, Maturity = 10 %3D years,…

A: Realized  Compound yield of the bond: It is the earnings  which is generated by investors  when all…

Q: Current 1-yr interest rate is 12%. Forward rate during 2nd year is 9% and is expected to rise by…

A: Yield to maturity: It is the rate that an investor earns when security is kept till maturity.

Q: A bond with 15 years to maturity, a face value of $1000, pays a coupon rate of 14% APR compounded…

A: Solution:- Yield-to-maturity means the rate of return earned by bond holder, if the bond is hold…

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Q: Compute the intrinsic value of an 18% coupon, a 4-year maturity bond whose principal will be repaid…

A: Intrinsic value is calculated by present value of cash flows. Present value of cash flows = Cash…

Q: what will its price be at that time

A: To calculate the bond's price one year from now, we can consider the information provided:Face…

Q: what is its yield-to-maturity?

A: Bond valuation is a method of finding the fair value of the bond. Fair value means the present…

Q: A zero-coupon bond with 15 years to maturity and a face value of $1000 is priced at $239.39.  What…

A: We have; Years to maturity (N) as 15 years Face Value(FV ) as $1000 Price of Bond (Present Value )…

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A: A zero coupon bond is usually offered at a discount price. As the name suggests, it does not pay any…

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A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…

Q: Given the conditions: A semi-annual coupon bond for a 7.5% coupon rate with a par value of $1,000,…

A: The present value of coupon and principal can be calculated with the help of present value factors

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Q: The price of a 20-year bond that has a coupon rate of 8% is $1100.The bond pays semiannual coupon.…

A: Calculate the semiannual coupon payment:Coupon rate = 8%Since payments are semiannual, divide the…

Q: Calculate the current market price of the bond

A: FV = 1000 coupon = 13% semiannual = 13/2% each period = 1000*13/2 = 65 each period time n = 10 =…

Q: The 1-year spot rate is 6%, the 2-year spot rate is 7%. The Treasury plans to issue 2-year maturity…

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Q: A 10 year maturity bond with a coupon rate of 5.5% and face value of $1,000 makes semi- annual…

A: In this question we require to calculate the yield to maturity of a bond if its current selling…

Q: A semiannual coupon bond is selling for Sl, 083. It has a face value of  $1,000 a coupon rate of 7.7…

A: Step 1: Calculate the Semiannual Coupon PaymentFind the annual coupon payment by multiplying the…

Q: Analyze the 20-year, 8% coupon rate (semi-annual payment), $1,000 par value bond. The bond currently…

A: Here, Given information Time Period =20 years  Semi -annual coupon rate = 8%/2= 4%(As period is semi…

Q: A bond with a coupon rate of 6.5% (assume it is paid once annually), matures in 10 years at a value…

A: PRESENT VALUE (CURRENT MARKET PRICE) 695 NPER (n) (MATURITY YEARS) 10 PMT (COUPON AMOUNT) 65…

Q: What is the semi-annual coupon bond's nominal yield to maturity, if the years to maturity is…

A: Given: Years to maturity = 15 years Coupon rate = 10% Par value = $1000

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Q: You buy an 8.9% coupon, paid annually, 8-year maturity bond for $945. A year later, the bond price…

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Q: What is the duration of a two-year bond that pays an annual coupon of 9 percent and has a current…

A: Introduction Bond Duration: Bond period is a metric for determining how much bond prices can…

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Q: Consider a bond, paying 8% semiannual coupons, with face value of US$1,000, maturing in 15 years and…

A: Par Value  $       1,000Coupon rate8.00%Years to maturity15Selling price of bonds$       724.7

Q: Calculate the present value of a 15-year bond having the following parameters: face value: PLN 500;…

A: As we have annuities (coupon payments) and that too are compounded quarterly,  it becomes quite…