Question

What is the time to maturity of a 5.0% coupon bond if its YTM is 8.0%? The bond's price is $843.69 and coupons are paid annually.

Answer #1

A bond sells for $1215 in the market and has 12 years until
maturity. The bond's YTM = 9.19% and pays its coupons annually.
What is the bond's annual coupon rate?

Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000
par value, and semiannual coupons.
Bond B has 10 years to maturity, 5% coupon rate, 5% YTM, $1000
par value, and semiannual coupons.
Bond C has 10 years to maturity, 4% coupon rate, 5% YTM, $1000
par value, and semiannual coupons.
Which comparison is TRUE?
A.
Bond A has higher price sensitivity than Bond B
B.
Bond C has higher price sensitivity than Bond A
C.
Bond...

Suppose you have a 3.25% coupon bond with a ytm of 1.50
percent and a term-to-maturity of 3 years. The bond pays its coupon
ANNUALLY(once per year) and has a face value of $1,000. What is
this bond’s price? What is its duration?

The term structure for zero-coupon bonds is currently:
Maturity (Years)
YTM(%)
1
5.0
%
2
6.0
3
7.0
Next year at this time, you expect it to be:
Maturity (Years)
YTM(%)
1
6.0
%
2
7.0
3
8.0
a. What do you expect the rate of return
to be over the coming year on a 3-year zero-coupon bond?
(Round your answer to 1 decimal place.)
b-1. Under the expectations theory, what yields to
maturity does the market expect to observe...

The yield-to-maturity (YTM) on one-year bond with zero coupon
and face value $ 1000 is 5 %. The YTM on two-year bond with 5 %
coupon paid annually and face value $ 1000 is 6 %. (i) What are the
current prices of these bonds? (ii) Find Macaulay durations of
these bonds. Consider a third bond which is a zero coupon two-year
bond with face value $ 1000. (iii) What must be the price of the
third bond so that...

Assume that you have Corporate bond with $1,000.0 par value;
5.0% Cuopon rate; 20 years to maturity; YTM = 6.0%. Interest is
paid annually. 1 - What is the value (price) of this bond. 2 - What
is the premium or discount of this bond. (Premium is when the
bond's price is more than $1,000.0 & discount is when the
bond's price is less than $1,000.0).

The yield to maturity of a one year zero coupon bond is 4 % p.
a. and the yield to maturity for a two year zero coupon bond is 5 %
p. a. If the par value of a 10% coupon bond (coupons paid annually)
is $1,000 and it matures in two years its price will be:"
"$1,093.89 "
"$1,078.92 "
"$1,068.23 "
"$1,055.12 "

A coupon bond has 10-years to maturity and a YTM of 8%. If the
YTM instantaneously increases to 9%, what happens to the bond’s
price and duration?
The price decreases and the duration increases.
The price increases and the duration decreases.
The price decreases and the duration decreases.
The price decreases and the duration stays the same
3-
Which of the following would not be expected to cause yield
spreads to widen?
The firm is involved in an accounting scandal....

Assume you pay $1,343 for a Tesla bond (14 year maturity, 6.5%
coupon bond, paid semi-annually, with a YTM of 3.4%, $1,000
principal). If Tesla is downgraded and the default risk premium of
Tesla increases by 5.0%, all-else-equal, what is the new bond price
of Telsa?
Group of answer choices $1,200 $845 $950 $935

Bond P is a premium bond with a coupon of 5 percent , a YTM of
6.64 percent, and 16 years to maturity. Bond D is a discount bond
with a coupon of 5 percent, a YTM of 9.56 percent, and also 16
years to maturity. If interest rates remain unchanged, what is the
difference in the prices of these bonds 5 year from now? (i.e.,
Price of Bond P - Price of Bond D) Note: Corporate bonds pay
coupons...

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