You own government bonds with a face value of $2 million. The bonds mature 6 years and 3 months from today and have a coupon rate of 12%, paid semiannually. The next coupon will be paid in three months. The current yield on these bonds is 6% p.a. compounded semi-annually. How much are the bonds worth today? (Hint: You want to find the present value. Notice the coupon rate is higher than the market rate. Bonds should be at a premium.)

You buy a bond and hold it for one year. According to the information below... What is your holding period return? (Keep in mind you received coupon payments over the course of the year and that you get one year closer to maturity after the year passes by) Face Value: $1,000 YTM1 (Yield of comparable bonds) at date of purchase: 4% YTM2 (Yield of comparable bonds) at date of sale, end of the year: 6% Coupon: 4% Maturity: 26 years A

Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity. Required: a. Find the bond's price today and six months from now after the next coupon is paid. b. What is the total (6-month) rate of return on the bond? Complete this question by entering your answers in the tabs below. Required A Required B Find the bond's price today and six months from now after the next coupon is paid. Note: Round your answers to 2 decimal places. Current price Price after six months $ $ 1,052.42 1,044.52

A 10-year government bond has face value of OR 200 and a coupon rate of 6% paid semiannually. Assume that the interest rate is equal to 8% per year. What is the bond’s price? What is the reason for the difference in price on an annual and semiannually basis? Discuss the role of financial managers.

You wish to sell a bond that has a face valueof $5,000. The bond bears an interest rate of 7.5%,which is payable quarterly. Six years ago, the bondwas purchased at $4,800. At least a 9% annual returnon the investment is desired. What must be the minimum selling price of the bond now in order to makethe desired return on the investment?

Over the next three years, the expected path of 1-year interest rates is 4, 1, and 1 percent. Today you buy $1 of one-year bond and when it matures you plan to use the money you receive to reinvest in one-year bond again. If the expectations theory of the term structure is true, then your expected rate of return for buying a two-year bond today is ______% (round to the neares integer)

If investors holding our 4-year bonds (Bond #1) receive interest income annually forfour years, plus the face value of the bonds at maturity,a. If the expected rate of return on our bonds is 10%, what is the duration ofBond #1? Given the following projected income stream for Bond #1: year                                          coupon interest                           face value 1                                                100 2                                                 100 3                                                100 4                                                 100                                            1,000 total income in yeear 4              400                                           1,000

You're considering a bond with a maturity of 10 years, face value of 1,000. The surface interest rate of these bonds is 9% and interest (coupon) is paid twice a year. What is the current price of this bond if you require an annual effective interest rate of 8.16% (not a nominal interest rate!)?

The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 17.6 percent. Assume interest payments are made semiannually. How would your answer change if the required rate of return is 11.4 percent? (Round final answer to nearest dollar amount.) Present value   $Type your answer here

YOUR BANK is thinking to issue a regular coupon bond (debenture) with the following particulars: Maturity = 3 years, Coupon rate = 9%, Face value = $1,500, Coupon payments are annual and paid at the end of a year. In the fixed-income securities market, the yield curve for the bond similar to the one issued by YOUR BANK is flat and it is 7.500% per annum continuously compounded. As per you, what should be the issue (offer) price per bond of YOUR BANK in US dollars?