Question

What is the value of a 3% 5 year $100 million bond when YTM is 4%

What is the value of a 3% 5 year $100 million bond when YTM is 4%

Homework Answers

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A 5-year, $1,000 face bond with a 3% coupon is currently selling with a 4% YTM...
A 5-year, $1,000 face bond with a 3% coupon is currently selling with a 4% YTM (yield to maturity). What is the purchase price of the bond? Immediately after you purchase the bond, the reinvestment rate in the market drops to 3%. What is your realized yield on your bond investment? What is the duration of the bond in Question? If market yields were to drop by 1%, what is the approximate percentage change in price you would expect, based...
Matuirty 1 2 3 4 5 Zero-Coupon YTM 4% 4.3% 4.5% 4.7% 4.8% Consider a five-year,...
Matuirty 1 2 3 4 5 Zero-Coupon YTM 4% 4.3% 4.5% 4.7% 4.8% Consider a five-year, default free bond with annual coupons of 5% and a face value of $1000. Assume the law of one price holds 1) what is the YTM of this bond 2) If the YTM increases to 5.2%, what would the new price be
1.         Suppose you buy a 2 year 5% bond that has a yield to maturity (YTM)...
1.         Suppose you buy a 2 year 5% bond that has a yield to maturity (YTM) of 6%. What is the price of the bond? 2.         Suppose you buy a 3 year 6% bond that has a YTM of 5%. What is the price of the bond? 3.         Suppose you buy a 10 year 9% bond that has a YTM of 11%. What is the price of the bond? 4.         Suppose you buy a 30 year 7% bond that has...
The yield-to-maturity (YTM) on one-year bond with zero coupon and face value $ 1000 is 5...
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...
Considering a three year bond, with a 4% coupon, YTM of 5% and par of $1,000....
Considering a three year bond, with a 4% coupon, YTM of 5% and par of $1,000. Calculate the Macauley and Modified duration.
f the YTM on a one-year zero-coupon bond is 4%, the YTM on a two-year zero-coupon...
f the YTM on a one-year zero-coupon bond is 4%, the YTM on a two-year zero-coupon bond is 5.6%, the YTM on a three-year zero-coupon bond is 4.6%, the YTM on a four-year zero-coupon bond is 7.5%, and the YTM on a five-year zero-coupon bond is 8.9%, what is the two-year forward rate starting two years from now? Express your answer in percent rounded to the nearest basis point.
1)There is semiannual compounding bond. What would the YTM be on a 10-year, zero coupon, $1,000...
1)There is semiannual compounding bond. What would the YTM be on a 10-year, zero coupon, $1,000 par value bond that is currently trading at $551.4? 2)Allie Benson observes Samsung 8.25%, 6-year, annual-pay bond trading at 104.34% of par (where par is $100). The bond is callable at 102 in three years. What is the bond’s yield-to-call? 3)A 12-year, 9% annual-pay bond has a par value of $1,000. What is the price of the bond if it has a yield-to-maturity of...
Consider a bond with maturity 4 year, 100 face value, coupon 5%, and yield 5%. Compute...
Consider a bond with maturity 4 year, 100 face value, coupon 5%, and yield 5%. Compute a dollar duration numerically using a dy =0.001%. Recall that $Dur is approximately equal to [P(y+dy)-P(y)]/dy when dy is small and P(y) is the price of the bond at the yield y. Report you result rounded to the closest integer and the correct sign.
MCA Healthcare issues a 5-year bond with an annual coupon of 4% and a face value...
MCA Healthcare issues a 5-year bond with an annual coupon of 4% and a face value of $100. What is the value of the bond if the yield to maturity is 4%? Question 1 options: 1) $116 2) $120                      3) $96 4) $108 5) $84 6) $88 7) $92 8) $112 9) $104 10) $100
. Calculate the price of a 4% coupon bond (annual coupons), $100 face value, 3 year...
. Calculate the price of a 4% coupon bond (annual coupons), $100 face value, 3 year bond if the appropriate discount rate is 10% each year.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT