Use the information for the question(s) below. The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 9.0%, then the price at which this bond trades will be closest to: OA. $919. OB. $1000. OC. $1086. OD. $946.
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- A bond has following characteristics: it was issued on 14.06.2018 and has 10 years to maturity. Coupon is paid semi-annually and carries interest rate of 3,2%. Market interest rate is currently 2,9% for similar issues. Investor purchased the bond on 19.11.2021. a. Calculate MacDuration b. Calculate ModDuration c. When market interest rates increase by 50 basis points, calculate price effect using results obtained in question (b)Use the information for the question(s) below. The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.5%, then this band will trade at A) par B) a discount. C) a premium. D) None of the aboveA corporate bond with a coupon rate of 6% pays interest semiannually and has a maturity date of May 28, 2030. The trade settles on March 20, 2023. The yield to maturity is 13%. What is the flat (or clean) price of the bond (in percent of par) on the settlement date? Use Excel's PRICE() function. Dates must be entered with Excel's DATE() function.
- The Salem Company bond currently sells for $848.55, has a coupon interest rate of 14%and a $1000 par value, pays interest annually, and has 16 years to maturity. a. Calculate the yield to maturity (YTM) on this bond. b. Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond.The S.Alam Company bond currently sells for $955, has a 12% coupon rate and a $1,000 par value, pays interest annually, And has 15 years to maturity. Calculate the approximate yield to maturity on this bond through trial and error Explain the relationship that exists between the coupon rate and yield to maturity and the par value and market value of a bond.There is a bond that has a quoted price of 940.023 and a par value of $1,000. The coupon rate is 7 percent and the bond matures in 13 years. The bond makes semiannual coupon payments a) Will the YTM be greater or less than the coupon rate? Explain your reason why b) Calculate the 7TM for the bond. Please be sure to show your calculations (if using a financial calculator, provide the input values used)
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- The Omani Company has two bond issues outstanding. Both bonds pay OMR (1000) annual interest plus OMR (10000) face value at maturity. Bond L has a maturity of 20 years, sell after three years issued, and Bond S has a maturity of 1 year. What will be the value of each of these bonds when the going rate of market interest is 12%? what can you conclude from the results of the above questions regarding the bond risks?Calculate the YTM based on the information provided.YTM Bond Details:A bond is currently selling for $850 with 15 years until it matures.The bond has a current coupon rate of 6% and makes paymentssemi-annually. You purchase the bond today 1/1/2023 as yoursettlement date and you are interested in knowing what the YTMwill be. **Note, when calculating the YTM the bond price (% of par)and face value (% of par) will not be percentages, please usenumbers for their respective section. The Yield Calculation is alreadybuilt into excel, all you have to do is type is =yieldA bond issued on February 1, 2004 with face value of $34400 has semiannual coupons of 7.5%, and can be redeemed for par (face value) on February 1, 2019. What is the accrued interest and the market price (the "clean" price) of the bond on November 15, 2006, if the bond's yield on that date is to be 8.5% ? (use actual/actual for accrued interest). Problem #1: accrued interest and market price (in that order), separated with a comma both answers correct to 2 decimals