Question

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.

Answer #1

your firm has outstanding bonds with semi annual coupon payments
and a face value of $1000. the price today is $1075, the yield yo
maturity is 8% and the bonds mature in 15 years.
A) compute the annual coupon rate
B) compute the capital gains yield
C) is the bond a premium or discount? why?
D) if the bond price goes up, what will happen to the coupon
rate?

a treasury bond has an annual coupon rate of 5% that is paid
semi-annually. the Face Value of the bond is $1000 and it has 10
years to maturity with a yield to maturity of 6% (expressed as an
apr with semi annual compounding) commpute the price of the
bond.

A 6% coupon bond Which face value $1000, Maturity of five years
and paying semi-annual coupon payment sales of $1050
A) What is yield to maturity.
b) what would happen if yield to maturity if it’s price suddenly
falls to $900.

Consider the following bond issued by Halliburton:
coupon rate: 7.129%
with semi-annual coupon payments Face value: $1,000
Bond matures in 21 years
Suppose, for the sake of argument, that the annual discount rate
is 7.958%, with semi-annual compounding. What is the value of the
bond?

What is the fair value of a $1000 face value, fixed coupon bond
with a coupon rate of 3.7%, yield to maturity of 4.0%, semi-annual
coupon payments and 8 years to maturity?
A. $887.24
B. 998.03
C. 979.63
D. 968.17

You are considering investing in a $1000 face value 8%
semi-annual coupon bond with 3 years left to maturity.
Similar bonds are yielding 9.5% in the market, so the current price
of this bond is _______, and if market interest rates drop to 8.25%
the selling price of the bond would _____________?

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

What is the value of a 5-year, 8.0% coupon rate, $1,000 face
value bond with semi-annual coupon payments, if similar bonds (same
maturity, same risk profile) are trading at a yield to maturity of
6.25%?

A bond pays a 5% coupon and makes semi-annual payments. The bond
has 10 years to maturity and a YTM of 6%. What is the current bond
price?

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?

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