Question

HW9 #6)

Bond A pays annual coupons, pays its next coupon in 1 year, matures in 12 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 13 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 8.46 percent and is priced at 836.24 dollars. Bond B has a coupon rate of 7.72 percent. What is the price of bond B?

Answer #1

Bond A pays annual coupons, pays its next coupon in 1 year,
matures in 17 years, and has a face value of 1,000 dollars. Bond B
pays semi-annual coupons, pays its next coupon in 6 months, matures
in 15 years, and has a face value of 1,000 dollars. The two bonds
have the same yield-to-maturity. Bond A has a coupon rate of 9.28
percent and is priced at 998.32 dollars. Bond B has a coupon rate
of 9.62 percent. What...

Bond A pays annual coupons pays ins next coupon in one year,
matures in 23 years and has a face value of one thousand. Bond B
pays semi annual coupons pays its next coupon in six months,
matures in three years and has a face value of one thousand. The
two bonds have the same yield to maturity. Bond A has a coupon rate
of 7.70 percent and is priced at $736.19. Bond B has a coupon rate
of 6.40...

HW9 #7)
Castor owns one bond A and one bond B. The total value of these
two bonds is 2,473.41 dollars. Bond A pays semi-annual coupons,
matures in 15 years, has a face value of 1,000 dollars, and pays
its next coupon in 6 months. Bond B pays annual coupons, matures in
17 years, has a face value of 1,000 dollars, has a
yield-to-maturity of 7.08 percent, and pays its next coupon in one
year. Both bonds have a coupon...

1. Castor owns one bond A and one bond B. The total value of
these two bonds is 2,593.9 dollars. Bond A pays semi-annual
coupons, matures in 14 years, has a face value of 1,000 dollars,
and pays its next coupon in 6 months. Bond B pays annual coupons,
matures in 15 years, has a face value of 1,000 dollars, has a
yield-to-maturity of 4.98 percent, and pays its next coupon in one
year. Both bonds have a coupon rate...

HW9 #8)
Arjen owns investment A and 1 bond B. The total value of his
holdings is 1,600 dollars. Investment A is expected to pay annual
cash flows to Arjen of 220.26 dollars per year with the first
annual cash flow expected later today and the last annual cash flow
expected in 3 years from today. Investment A has an expected return
of 17.75 percent. Bond B pays semi-annual coupons, matures in 13
years, has a face value of $1000,...

HW9 #1)
Today, a bond has a coupon rate of 6.62 percent, par value of
1,000 dollars, YTM of 11.3 percent, and semi-annual coupons with
the next coupon due in 6 months. One year ago, the bond’s price was
969.92 dollars and the bond had 10 years until maturity. What is
the current yield of the bond today? Answer as a rate in decimal
format so that 12.34% would be entered as .1234 and 0.98% would be
entered as .0098.

#1) Cy owns investment A and 1 bond B. The total value of his
holdings is 900 dollars. Bond B has a coupon rate of 4.9 percent,
par value of $1000, YTM of 10.5 percent, 22 years until maturity,
and semi-annual coupons with the next coupon due in 6 months.
Investment A is expected to produce annual cash flows forever. The
next cash flow is expected to be 60.4 dollars in 1 year, and
subsequent annual cash flows are expected...

A bond has a coupon rate of 4.6% and pays coupons semi-annually.
The bond matures in 5 years and the yield to maturity on similar
bonds is 2%. Is this a par, premium or discount bond? What is the
price of the bond?
What is the coupon rate for the bond? Assume semi-annual
payments. Answer as a percent!
Bond
Coupon Rate
Yield
Price Quote
t
Apple B
?
3.7%
99.09
21

A Ford Motor Co. coupon bond has a coupon rate of 6.55%, and
pays annual coupons. The next coupon is due tomorrow and the bond
matures 28 years from tomorrow. The yield on the bond issue is
6.4%. At what price should this bond trade today, assuming a face
value of $1,000?

A Ford Motor Co. coupon bond has a coupon rate of
6.7%,
and pays annual coupons. The next coupon is due tomorrow and the
bond matures
24
years from tomorrow. The yield on the bond issue is
6.35%.
At what price should this bond trade today, assuming a face
value of
$1,000?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 15 minutes ago

asked 16 minutes ago

asked 16 minutes ago

asked 21 minutes ago

asked 44 minutes ago

asked 51 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago