What is the duration of a two-year bond that pays an annual coupon of 9 percent and has a current yield to maturity of 16 percent? Use $1,000 as the face value.
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Q: What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that…
A: Yield to maturity(YTM) is the rate of return on bond that is obtained if bond is held till maturity.…
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A: Modified duration of bond can be calculated by using this equation Modified duration =Macaulay…
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A: Bond is debt-instrument that is used by entities t raise debt funds from public-at-large. Bonds pay…
Q: Assume that a company issued a bond with $1000 face value, 10% coupon rate, 20 years maturity. If…
A: Face value =$1000 Coupon rate =10% Coupon payment =$100 Time =20 years YTM =8% So, present value of…
Q: A bond with 20 years to maturity and a face value of $1000 pays semi-annual coupons at a rate of 9%…
A: Given Information:Par value of bond = $1000 Annual coupon rate of bond = 9% (paid semi annually)…
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Q: current price of
A: Bond price refers to the present discounted value based on some future date of cash generated by…
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A: Using excel rate function
Q: A 12-year bond has a 9 percent annual coupon, a yield to maturity of 8 percent, and a face value of…
A: Bond value is the present value of all the cash flow the bond will generate in its lifetime, it…
Q: What is the semi annual coupon bonds nominal yield to maturity (ytm),if the years to maturity is 15…
A: in this problem we have to consider discount rate at which present value of par value and present…
Q: find the present value of a 2 year bond that pays a semi annual coupon has a coupon rate of 6…
A: Bond is a long-term debt instrument that is used by organizations to raise debt funds from public.…
Q: A $1,000 face value bond has a 3% annual coupon rate and 12 years to maturity. If the yield to…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: A 25-year coupon bond pays an annual coupon of 5 and has a face value of 100. If the current price…
A: Annual Interest = 5% FV = Face Value of the Bond = 100 Price = Current Market Price = 100 Maturity =…
Q: A 10-year, 12 percent semiannual coupon bond, with a par value of $1,000 sells for $1,100. What is…
A: Given details are : Par value of bond = $1000 Current price i.e. present value = $1100 Time period =…
Q: What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for…
A: In the given above question we need to compute the yield to maturity on a bond. We can solve this…
Q: A bond with 20 years to maturity and a face value of $1000 pays semi-annual coupons at a rate of 9%…
A: Solution:- Bond price means the price at which the bond is currently trading in the market. Price of…
Q: A zero-coupon bond that matures in 15 years is currently selling for $209 per $1,000 par value. What…
A: In the given question we require to compute the yield on zero coupon bond using below details : Time…
Q: A three-year bond is issued with a 9% coupon paid annually, and a maturity value of £100. If the…
A: Par value = £100 Coupon rate = 9% Coupon rate = 100*0.09= £9 Yield to maturity = 12% Years to…
Q: What is the duration of a 2-year bond that pays a coupon of 4% per annum? It has a face value of…
A: Duration is the period required for the bond holder to collect amount invested in the bond.
Q: What is the market value of a bond that will pay a total of 60 semi-annual coupons of $50 each over…
A: The market price of bond is calculated as the present value of coupon and face value
Q: You purchase a bond for $825. It pays a semi-annual coupon of 4 percent, and the bond matures after…
A: Yield-to-Maturity refers to return rate that a bond will effectively generate each year if bond is…
Q: What is the current price and Macaulay's duration of a $1,000, 8% coupon bond that pays interest…
A: Calculation of current price and Macaulay’s duration:The bond price is $895.64, and Macaulay’s…
Q: What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid annually, par value of…
A: Yield to maturity (YTM) is the discount rate or the rate of return that an investor earns by holding…
Q: A bond that matures in 8 years has a par value of $1,000 and an annual coupon payment of $70, its…
A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…
Q: A bond with 20 years to maturity and a face value of $1000 pays semi-annual coupons at a rate of 9%…
A: Solution:- Bond price means the price at which the bond is currently trading in the market. Price of…
Q: A bond matures in 15 years and pays an 8 percent annual coupon. The bond has a face value of $1,000…
A: Current yield = coupon price /current market price Yield on bond is rate we earn if we held the bond…
Q: What is the yield to maturity, to the nearest percent, for the following bond: current price is…
A: Bonds are the financial instruments that are issued financial institution to raise funds from…
Q: What is the yield to maturity for the following bond: current price is $908, coupon rate is 11…
A: Here, Present value (PV) = $908 Maturity value (FV) = $1,000 Coupon rate = 11% Time to maturity (n)…
Q: What is the duration of a five-year bond with a coupon rate of 7%, a yield to maturity of 8%, a…
A: Given: Years = 5 Coupon rate = 7% Yield to maturity = 8% Face value = $1,000
Q: Assume a 10-year, $1,000 par value bond with a 10 percent annual coupon if its required rate of…
A: Bond value is the current worth of a bond on the basis of the present value of the bond expected…
Q: Carrie’s Clothes, Inc. has a five-year bond outstanding that pays $60 annually. The face value of…
A: a) Bond's Coupon Rate = Annual Coupon / Face Value
Q: Calculate the value of a bond that matures in 15 years and has $1,000 par value the annual interest…
A: Bonds are considered a long-term financial liability. This is one of the methods of raising funds…
Q: A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985.…
A: Yield to maturity (YTM) is the total return expected on the bond if the bold is held till maturity.…
Q: Consider a 30-year 8 percent bond, paying coupon semi-annually, and selling for $960. If the bond is…
A: HOLDING PERIOD YEILD FORMULA: holding period yield=incom generated+selling price-purchase…
Q: What is the price of a 5-year bond with a nominal value of $100, a yield to maturity of 7% (with…
A: Nominal value (V) = $100 Yield to maturity (i) = 0.07 Coupon rate = 0.10 Annual coupon amount (C) =…
Q: A 10 year bond with 5% annual coupon and $1,000 par value sells for $1,200. What is the…
A: Face value = $1000 Duration (n) = 10 years Coupon = 5% of $1000 = $50 Bond price = $1200 Let r =…
Q: Find the yield to maturity on a semi-annual coupon bond with a face value of P 1,000, a coupon rate…
A: Solution:- Yield to maturity is the rate of return earned by the bond holder, if he holds the bond…
Q: A 3-year bond with 10% coupon rate and Rs.1000 face value has the yield to maturity of 12%. Assuming…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: What is the value of a 6%, five year bond with annual coupons and face value equal to $1,000, if the…
A: The Current price of the Bond is the present value of its expected future cash flow which is…
Q: A bond maturing in fifteen years has a a current price of $825.65, yield to maturity of 9.25%, a…
A: The coupon rate is the annual return an investor seek to receive while holding a bond. Coupon rate…
Q: What is the approximate yield to maturity (YTM) of a bond that is currently selling for $1,150 in…
A: Par value (F)= $ 1000 Coupon rate = 14% Coupon amount (C) = 1000*0.14 = $ 140 Years to maturity (N)…
Q: Calculate the value of a bond that matures in 15 years and has a $1,000 par value. The annual…
A: Face Value ( Par Value) = 1000 Time Period = 15 years Coupon = Coupon Rate * Face Value = 11%*1000 =…
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 105% with coupons rate of 10%? Assume the par value of the bond is $1,000. Using a financial calculatorWhat is the duration of the following bond: $1,000 par value, 6% annual coupon, 4 years to maturity, and yield to maturity of 6.5%? You will need your answer for the next question.
- What is the duration of the following bond:$1,000par value,6%annual coupon, 4 years to maturity, and yield to maturity of6.5%? You will need your answer for the next question. In the prior question, what is the present value of the bond?Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timelineConsider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the rate of return of the bond? What is the yield to maturity of the bond?
- Consider a bond with a principal of $1,000 that pays a coupon of $100 per year. If the bond matures in one year and the current interest rate is i = 3%, what is the price (present value) of the bond? Round to the nearest cent. Answer:What is the duration of a five-year bond with a coupon rate of 7%, a yield to maturity of 8%, a semi-annual coupon payment, and a face value of $1,000?What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 119% with coupons rate of 10%? Assume the par value of the bond is $1,000.
- What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to maturity, and a current price of $959? What is the modified duration? Duration is __. years. Modified duration is __ years.suppose a 30 year, pay coupon of 4% is priced to yield 5%. par = 1000. the bond pays its coupon annually. calculate the instrinsic value of the bond. decide whether the bond is at premium or discount? please show the calculation using excelWhat is the yield to maturity on a bond that has a price of $1,700 and a coupon rate of 12% annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at premium, at par, or at discount? How can you tell? (Using financial calculator)
