You are looking at investing in an annual coupon bond with 9 years to maturity, a face value of $1000, a yield to maturity of 6% and a price of $1,096.62. What is the annual coupon of the b (please round your answer to the nearest penny)
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- The market price of a 10-year bond is 957$, its yield to maturity is 8% per year, and annual coupon payments are equal to 957$. The face value of the bond is $1000. Calculate the present value of the bond. Would you buy it? The answer is to be written in the reasons box. Round your answer to the nearest tenth. Optional: Provide calculation details in the reasons box. Answer: Give your reasonsConsider 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?What is the duration of the following bond: $1,000 par value, 6% annual coupon, 4 years to maturity, and yield to maturity of 6.5%? You will need your answer for the next question.
- The market price of a 10-year bond is 984$, its yield to maturity is 8% per year, and annual coupon payments are equal to 984$. The face value of the bond is $1000. Calculate the present value of the bond. Would you buy it? The answer is to be written in the reasons box. Round your answer to the nearest tenth. Optional: Provide calculation details in the reasons box.What is the price of a bond with a coupon rate of 7%, payable semi-annually, a face value of $1000, 7 years to maturity, and a yield to maturity of 6.8%? Enter your response below. Enter your answer to 2 DECIMAL PLACES. NumberWhat is the value of a bond that has a par value of $1,000, a coupon of $120 (annually), and matures in 10 years? Assume a required rate of return of .0702. Instruction: Type your answer in dollars, and round to two decimal places.
- You buy an 8.9% coupon, paid annually, 8-year maturity bond for $945. A year later, the bond price is $1,055. Face value of the bond is $1,000. a. What is the yield to maturity on the bond today? What is the yield to maturity on the bond in one year? b. What is your rate of return over the year?What is the value of a bond that matures in 17 years, makes an annual coupon payment of $50, and has a par value of $1,000? Assume a required rate of return of .0590. Instruction: Type your answer in dollars, and round to two decimal placesExample: You buy a 10-year maturity bond for the face value of $1,000 when the current interest rate is 9%. A year later, you sell the bond for $980. Assuming annual coupon payment, a. What is the new yield to maturity on the bond when you sell the bond? b. What's your holding period return during the year?
- You bought a bond for $970. This bond has a face value of $1,000, 6 years to maturity and a coupon rate of 8%. If you decide to sell the bond after holding it for one year, what will be the increase in the bond price? Answer:What 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)Suppose a bond pays an annual coupon interest of $3000. Compute the yield per year that a bondholder will earn if the bond is purchased at a market value of $ 120000, $100000 and $75000. The calculations lead you to what conclusion?