What is the yield-to-maturity of a 3-year bond with a coupon rate of 6% and face value of $100? Assume the bond is currently trading at a price of $100, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to 4 decimal places. For example if your answer is 3.205 % , then please write down 0.0321.

What is the yield-to-maturity of a 3-year bond with a coupon rate of 6% and face value of $100? Assume the bond is currently trading at a price of $100, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to 4 decimal places. For example if your answer is 3.205 % , then please write down 0.0321.

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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What is the fair price of a bond assuming that the annual rate is 5.32% if its face value is Php 610,500, the maturity date is 29 years from now and that the coupon rate is 5.32% payable quarterly? Round off the answer to two decimal places.
Calculate the Macaulay Duration for a six-year annual coupon paying bond with a coupon of 3.5 %, priced with a yield to maturity of 5.5%. Assume that you are calculating 10 days after a coupon payment where day count convention is 360 days. (Work to 4 decimal places and then present your answer to 2 decimal places).
What is the price of a bond with the following features? 5 years to maturity, face value of $1000, coupon rate of 4% (annual coupons) and yield to maturity (discount rate) of 9.8%.. Enter your answer in terms of dollars and cents, rounded to 2 decimals, and without the dollar sign. That means, for example, that if your answer is $127.5678, you must enter 127.57
how does the equation for valuing a bond change if semiannual payments are made? find the value of a 10-year, semiannual payment, 10% coupon bond if nominal rd equal 13%.
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.
Suppose a bond has a coupon rate of 9.5%, a remaining maturity of 15 years, and a face value of N1,000. If the yield-to-maturity on this bond is 13%, what is the current price (value) of this bond? The bond pays coupons monthly.
You purchase a bond with an invoice price of $1,047. The bond has a coupon rate of 10 percent, and there are 4 months to the next semiannual coupon date. What is the clean price of the bond? Enter the answer with 2 decimals (e.g. 954.23).
Suppose that a bond has a face value of $200 000 and its maturity date is 10 years from now. The coupon rate is 5% payable semi-annually. Find the fair price of this bond, assuming that the annual market rate is 4%.
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The 3-year interest rate is 6.60%, and the 4-year interest rate is 7.90%. The liquidity premia for 3- and 4-year bonds are 0.60% and 0.9%, respectively. Calculate the adjusted forward-rate forecast for 3 periods in the future. (Round your answer to two decimal points.)
1. Consider a real return bond with a face value of $15,000 and a coupon yield of 5.2%. What is the coupon payment after one year if the inflation rate is 6.8%? Select one: a) $817.44 b) $833.04 c) $825.24 d) $809.64 I
Give typing answer with explanation and conclusion You are looking at a 23-year zero-coupon bond that has a yield to maturity of 4.4% . What is the value of the bond? Assume semi-annual compounding.

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