What is the yield to call of a 20-year to maturity bond that pays a coupon rate of 6.54 percent per year, ha $1,000 par value, and is currently priced at $1,104? The bond can be called back in 7 years at a call price $1,056. Assume annual coupon payments. Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) You should use Excel or financial calculator.

What is the yield to call of a 20-year to maturity bond that pays a coupon rate of 6.54 percent per year, ha $1,000 par value, and is currently priced at $1,104? The bond can be called back in 7 years at a call price $1,056. Assume annual coupon payments. Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) You should use Excel or financial calculator.

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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, a. Find the duration of a 7% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7.6%. (Do not round intermediate calculations. Round your answers to 4 decimal places.) b. What is the duration if the yield to maturity is 11.6%? (Do not round intermediate calculations. Round your answers to 4 decimal places.) 7.6% YTM __ Years 11.6% YTM __ Years
(Bond Valuation Problem) A $1,000 par value bond with a coupon interest rate of 12.8 percent per year paid semiannually matures in 25 years. Draw a CF diagram corresponding to this information and then complete the table below by filling in the prices and YTMs that correspond to the given YTM’s and prices respectively. Show all the work for part D – both the PVAt and PV calculations. Then check your answer using your calculator’s TVM solver menu or function keys. PRICE YTM A. ______________ ___0%____ B. __$1,000______ __________ C. __$ 917.19_____ __________ D. ______________ ___16%____ Step By Step explanation please, I need to be able to see how we arrived at the answers as if I was writing them on a sheet of paper.
Calculate the price of a 5.6 percent coupon bond with 10 years left to maturity and a market interest rate of 8.0 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Bond Price : $____.__ Is this a discount or premium bond? discount bond premium bond
What is the market price of a bond if the face value is $1,000 and the yield to maturity is 5.7%? The bond has a 5.15% coupon rate and matures in 14 years. The bond pays interest semiannually. Please express answer as $X.XX or XX.XX and use rounding guideline included in "Course Information" module. Do not round until the final result.
You purchase a bond with a coupon rate of 6.8 percent, a par value $1,000, and a clean price of $910. Assume a par value of $1,000. If the next semiannual coupon payment is due in two months, what is the invoice price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value): Maturity (years) Price (per $100 face value) 1 $96.32 a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? a. Compute the yield to maturity for each bond. The yield on the 1-year bond is %. (Round to two decimal places.) 2 $91.93 3 $87.36 4 5 $82.57 $77.42
What is the market price of a bond if the face value is $1,000 and the yield to maturity is 6.7% ? The bond has a 6.15% coupon rate and matures in 12 years. The bond pays interest semiannually. Please express answer as $X.XX or XX.XX and use rounding guideline included in "Course Information" module. Do not round until the final result.
What is the yield to maturity of a 25-year bond that pays a coupon rate of 6.47 percent per year, has a $1,000 par value, and is currently priced at $1,037? Assume annual coupon payments. Round the answers to two decimal places in percentage form.
numerical answers should be calculated to at least two decimal places. Face value of bonds is taken as $100. assume coupon payments are paid once a year. Bond A: term to maturity=10 years, coupon rate = 9.75%, current price = $160.55. Find the current yield and yield to maturity of Bond A. Bond B: term to maturity-5 years, coupon rate = 11.25%, yield to maturity -2.35% p.a. Find the current price of Bond B. From your answer, what do say about this price when compared with the face value of the bond?
a. What is the duration of a two-year bond that pays an annual coupon of 11.5 percent and has a current yield to maturity of 13.5 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616)) b. What is the duration of a two-year zero-coupon bond that is yielding 11.5 percent? Use $1,000 as the face value. a. Duration b. Duration years years
What is the market price of a bond with a maturity of 6 years, a coupon rate of 5.9% paid semi-annually, a par value of $1000, and a yield to maturity of 8.1%. (Round your answer to the nearest penny; enter your answer as a positive number, no $ sign.)
A 5.75 percent coupon bond with 10 years left to maturity is priced to offer a 6.5 percent yield to maturity. You believe that in one year, the yield to maturity will be 5.8 percent. Assuming semiannual interest payments, what is the change in price the bond will experience in dollars? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.

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