Question

PART 2 - BOND CALCULATIONS

a) What is the price of a $1,000 par value, semi-annual coupon bond with 16 years to maturity, a coupon rate of 5.40% and a yield-to-maturity of 5.90%?

b) What is the price of a $1,000 par value, 10 year, annual coupon bond with a 5.80% coupon rate and a yield to maturity of 5.50%

c) A 10-year, 6.30% semi-annual coupon bond today and the current market rate of return is 5.60%. The bond is callable in 4 year with a $85 call premium. What price did you pay for your bond?

Answer #1

Number of Periods =16*2 =32

Semi annual YTM =5.9%/2 =2.95%

Price of Bond =PV of Coupons +PV of Par Value
=27*((1-(1+2.95%)^-32)/2.95%)+1000/(1+2.95%)^32=**948.68**

b. Coupon =5.8%*1000 =58

Number of Periods =10 =10

Semi annual YTM =5.5%

Price of Bond =PV of Coupons +PV of Par Value
=58*((1-(1+5.5%)^-20)/5.5%)+1000/(1+5.5%)^20=**1035.85**

c. Par Value =1000

Coupon =6.3%*1000/2 =31

Number of Periods =10*2 =20

Semi annual YTM =5.6/2 =2.80%

Price of Bond =PV of Coupons +PV of Par Value
=31*((1-(1+2.80%)^-20)/2.80%)+1000/(1+2.80%)^20=1045.47

Price of call Bond =Price of bond -PV of call premium
=1045.47-85/(1+2.80%)^(4*2)=**977.32**

Q3) What is the price of a $1,000 par value, semi-annual coupon
bond with 15 years to maturity, a coupon rate of 03.60% and a
yield-to-maturity of 08.70%? (1 point)

An 8% coupon bond, $1,000 par value, annual payments, 10 years
to maturity is callable in 7 years at a call price of $1,200. If
the bond is selling today for $900, the yield to call is closest
to

The price of a ten-year semi-annual pay bond with a par value of
$1,000 and a 7 percent annual coupon and yield to maturity of 8.25
percent is closest to:

The price of a ten-year semi-annual pay bond with a par value of
$1,000 and a 7 percent annual coupon and yield to maturity of 8.25
percent is closest to: a) 1051.48 b) 900.23 c) 915.99 d) 949.60

A 20-year, 8% annual coupon bond
with a par value of $1,000 may be called in 5 years at a call price
of $1,040. The bond sells for $1,100. (Assume that the bond has
just been issued.)
Basic Input Data:
Years to maturity:
20
Periods
per year:
1
Periods
to maturity:
20
Coupon
rate:
8%
Par
value:
$1,000
Periodic
payment:
$80
Current
price
$1,100
Call
price:
$1,040
Years
till callable:
5
Periods
till callable:
5
a. What is the bond's...

The price of a ten-year semi-annual pay bond with a par value of
$1,000 and a 7 percent annual coupon and yield to maturity of 8.25
percent is closest to:please give step by step solutions!
915.99
1051.48
949.60
900.23

NYU
issued a 20-year bond that pays a semi-annual coupon of $32.00, has
a par value of 1,000, and a nominal annual yield-to-maturity of
7.639 percent. This bond can be called in 5 years, and the nominal
annual-yield to call is 10.15 percent. Determine the call premium
for this bond.

Assume a bond with the following parameters: What is it's Yield
to Maturity?
Par Value $1,000
Call Premium $75 Coupon
Rate 6.00%
Payments are Made Semi-Annually
Years to Maturity 20
Years to Call 10
Current Market Price $1,200

1. Assume a par value of $1,000. Caspian Sea plans to issue a
11.00 year, semi-annual pay bond that has a coupon rate of 8.15%.
If the yield to maturity for the bond is 7.61%, what will the price
of the bond be?
2. A zero-coupon discount bond trades today at $600.00. The bond
will mature in 5.00 years from today at a redemption value of
$1,000.00. What yield to maturity will an investor receive if they
purchase today?

A 20-year, $1,000 par value bond has a 9% semi-annual coupon.
The bond currently sells for $925. If the yield to maturity remains
at its current rate, what will the price be 10 years from now? a.
$935.01 b. $930.01 c. $952.84 d. $945.72

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