Question

a) What is the value of a 6-year, 7.7% coupon, $1,000 face value bond that pays quarterly coupons, if its yield to maturity is 2.8%? Round to the nearest cent.

b) You own a 17-year, 3.8% annual coupon bond with $1,000 face value. If the yield to maturity is 8.5%, what percentage of the bond's value comes from the present value of coupon payments? Answer in percent, rounded to one decimal place.

c) Your company is undertaking a new investment opportunity and
you would like to issue bonds to fund the project. Each bond will
be a 7-year zero-coupon bond with a $1,000 face value. If the bonds
are to yield 6.2%, how many of these bonds will the company need to
issue today in order to raise $53 million? **Round to the
nearest whole number.**

Answer #1

a)

a. You own a 4-year, 5.1% annual coupon bond with $1,000 face
value. If the yield to maturity is 6.9%, what percentage of the
bond's value comes from the present value of coupon payments?
Answer in percent, rounded to one decimal place.
b. Your company is undertaking a new investment opportunity and
you would like to issue bonds to fund the project. Each bond will
be a 5-year zero-coupon bond with a $1,000 face value. If the bonds
are to...

What is the value of a 18-year, 7.5% coupon, $1,000 face value
bond that pays quarterly coupons, if its yield to maturity is 7%?
Round to the nearest cent.

What is the price of a 4-year, 8% coupon rate, $1,000 face
value bond that pays interest quarterly if the yield to maturity on
similar bonds is 11.9%?

What is the price of a 3-year, 7.9% coupon rate, $1,000 face
value bond that pays interest quarterly if the yield to maturity on
similar bonds is
12.1%?

What is the price of a 3-year, 7.9% coupon rate, $1,000 face
value bond that pays interest quarterly if the yield to maturity on
similar bonds is 11.9%?

a 10-year bond, $1,000 face value bond with a 8% coupon rate and
semi-annual coupons has a yield to maturity of 12%. the bond should
be trading at the price of? round to nearest cent

7.
A) As with most bonds, consider a bond with a face value of
$1,000. The bond's maturity is 27 years, the coupon rate is 14%
paid annually, and the market yield (discount rate) is 5%. What
should be the estimated value of this bond in one year? Assume the
market yield remains unchanged. Enter your answer in terms of
dollars, rounded to the nearest cent.
B) As with most bonds, consider a bond with a face value of
$1,000....

Suppose you purchase a zero coupon bond with a face value of
$1,000, maturing in 21 years, for $215.00. Zero coupon bonds
pay the investor the face value on the maturity date. What is the
implicit interest in the first year of the bond's life?
The implicit interest in the first year of the bond's life is
? (Round to the nearest cent.)

Suppose you purchase a zero coupon bond with a face value of
$1,000, maturing in 20 years, for $214.55. Zero coupon bonds pay
the investor the face value on the maturity date. What is the
implicit interest in the first year of the bond's life? The
implicit interest in the first year of the bond's life is
_________. (Round to the nearest cent.)

What is the price of a
5-year,
8.2%
coupon rate,
$1,000
face value bond that pays interest annually if the yield to
maturity on similar bonds is
7.2%?

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