Question

1)
how much should you pay for a $1000 bond with 6% coupon, annual
payments, and 16 years to maturity if the interested rate is 6%?

2) how much should you pay for a $1000 zero coupon bond with 5
years to maturity if the interest rate is 5%?

3) what is the rate of return for an investor who pays $1061
for a 3 year bond with an annual coupon payment of 6% and sells the
bond 1 year later for $909? state the answer in percentages.

4) A bond is priced at $1,100 has 24 years remaining until
maturity and has 7% coupon, paid semiannually. What is the amount
of the next interest payment?

5) Rosita purchased a bond for $903 that had a 5% coupon and
semiannual interest payments. She sold the bond after 6 months and
earned a total return of 5.2% on this investment. At what price,
did she sell the bond?

6) Two years ago a bond was issued at par with 10 years until
maturity and a 4% annual coupon. If interest rates for that grade
of bond are currently 9%, what will be the market price of this
bond?

Answer #1

What is the amount of the annual coupon payment for a bond that
has 6 years until maturity, sells for $1,050, and has a yield to
maturity of 9.37%? Show your calculations!
$98.64
$95.27
$101.38
$104.97
Two years ago bonds were issued at par with 10 years until
maturity and a 7% annual coupon. If interest rates for that grade
of bond are currently 8.25%, what will be the market price of these
bonds? Show your calculations!
$917.06
B. $928.84...

1. ABC Corp. has a bond issue outstanding with an annual coupon
of 6%, made in annual payments, and 5 years remaining until
maturity. The par value of the bond is $1000. Determine the current
value of the bond if present market conditions justify a 12% yield.
(10 points)
2. ABC Corp. has a bond issue outstanding with an annual coupon
of 6%, made in semi-annual payments, and 7 years remaining until
maturity. The par value of the bond is...

If you purchase a $1000 par value bond for $1025 that has a 6
3/8% coupon rate and 8 years until maturity, what will be your
annual return?

A 10-year corporate bond has a coupon rate of 6% with annual
payments. If interest rates rise to 7% on similar bonds then what
is the value of the bond in the marketplace?
A 10-year corporate bond has a coupon rate of 6% with annual
payments. If interest rates rise to 5% on similar bonds then what
is the value of the bond in the marketplace?
A 10-year corporate bond has a coupon rate of 6% with
semi-annual payments. If...

What is the Coupon Rate of a bond that makes semi-annual coupon
payments and has a current price of $967.70, a par value of $1000,
a YTM of 8.2%, and has 13.5 years until maturity?

On January 1, 2017, you buy a three-year, annual-pay coupon bond
with 6% coupon rate, $1000 face value, and yield to maturity 6%. On
January 1, 2018, you receive the first coupon of the bond, and on
January 1, 2019, you receive the second coupon. Immediately after
receiving the second coupon, you sell the bond. Assume that yields
on bonds of all maturities are equal to 4.5% on January 1, 2019. a)
(10 points) What is the price that you...

suppose there is a bond with 5% semi-annual coupon payments and
a face value of $1000. there are 10 years to maturity and the
yields to maturity are 7 % what is the price of this bond? show
your calculations.

What is the price of a $1000 face value zero-coupon bond with 4
years to maturity if the required return on these bonds is 3%?
Consider a bond with par value of $1000, 25 years left to
maturity, and a coupon rate of 6.4% paid annually. If the yield to
maturity on these bonds is 7.5%, what is the current bond
price?
One year ago, your firm issued 14-year bonds with a coupon rate
of 6.9%. The bonds make semiannual...

1.)
A $1000 bond with an annual coupon rate of 5% is traded at $900 in
year 3, and $950 in year 4. What is its rate of return from year 3
to year 4?
2.) A $1000 bond with an annual coupon rate (APR) of 6%, but
pays interest every 3 months. what is the amount of the bonds first
interest payment?
3.) A loans outstanding balance is $800, and its annual
interest rate is 6%. what is the...

9) what should the price be for a $1000 face value bond with a
1% coupon rate, semi-annual coupon payments, and five years to
maturity if the YTM is 12%
a) $568
b)$595
c) $689
d)$1000
10) What is future of $10 invested today, if it is invested for
three years with annual compounding at a 24% interest?
a) 11.9
b) 17.2
c)19.1
d) 20.1

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