Question

. A bond has a face value of $1000 and a market price of $1064. If the interest payment on the bond is $100 annually and the bond matures in 10 years, the required rate on the bond is (the nearest rate),

a) 9.00%

b) 10.00%

c) 7.30%

d) 11.50%

Answer #1

Calculator | |

Inputs: | |

PV | (1,064) |

PMT | 100 |

FV | 1,000 |

N | 10 |

Output: | |

I/Y = IRR= | 9.00% |

Answer is 9%

please rate.

A bond has a coupon ate of 10%, a 1000$ face value, matures in 5
years, has a yield of maturity of 15% percent and pays interest
annually. What is the current yield?

A bond with a face value of $1000 made a payment earlier today
and has exactly 2 years left until it matures. The bond makes
semi-annual payments of $40 each. Currently, the interest rate on
newly-issued, same-risk bonds is 8.62%. What is the value of this
bond?

4. A bond has a face value of $1000, a coupon rate of 6%, paid
semi-annually, has 23 years to maturity, and the market rate of
interest is 7%. What is the value of the bond today?

A bond has a face value of $1000 with a time to maturity ten
years from now. The yield to maturity of the bond now is 10%.
a) What is the price of the bond today, if it pays no
coupons?
b) What is the price of the bond if it pays annual coupons of
8%?
c) What is the price today if pays 8% coupon rate
semi-annually?

A bond has a Face Value of $1000, Coupon rate of 7%,
Yield/market interest is 11%. The bond has a time to maturity of 9
years. Assuming annual coupon payments, how does a 1% increase in
interest rates affect the price of the bond? What is the new price
of the bond?

The price of one-year bond (A) with zero coupon and face value $
1000 is $ 961.5. The price of two-year bond (B) with zero coupon
and face value $ 1000 is $ 907. Consider a third bond (C), a
two-year bond with $ 100 coupon paid annually and face value of $
1000.
(i) What must be the price of bond C so that the Law of One
Price holds. Explain where you use LOOP.
(ii) Suppose that 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

Consider a coupon bond that has a face value of $1000, has a
yield of 16%,
pays a semi annual coupon of 70, and matures in one year. Assuming
that the
bond will pay the face value amount that the cost coupon payment on
the
maturity date. Calculate the price of the bond.

An Australian Government bond with a face value of $1,000 and an
annual coupon rate of 5.5% matures in seven years, pays interest
semi-annually, and has a yield to maturity of 6.2%. What is the
price of the bond right after it makes its first coupon
payment?
a. $947.21
b. $960.73
c. $945.08
d. $963.01

a) Consider the following, a AAA rated Treasury bond with a face
value of $1000, maturing in 20 years and paying 14.00 per cent per
annum coupons semi-annually. If current market yields for this type
of security are 12.00 per cent per annum, what price would you pay
for the instrument?
b) What will happen to the price of the bond if yields adjust
from
12.00 to 10.00 percent per annum?
c) Consider now the bonds noted above in (a)...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 55 seconds ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 6 minutes ago

asked 6 minutes ago

asked 8 minutes ago

asked 8 minutes ago

asked 8 minutes ago

asked 8 minutes ago