Question

2. Today, a bond has a coupon rate of 8.4 percent, par value of 1,000 dollars, YTM of 4.82 percent, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond’s price was 1,041.94 dollars and the bond had 17 years until maturity. What is the current yield of the bond today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

3. One year ago, a bond had a coupon rate of 4.86 percent, par value of $1000, YTM of 9.02 percent, and semi-annual coupons. Today, the bond’s price is 951.01 and the bond has 7 years until maturity. What was the current yield of the bond one year ago? The next coupon is due in 6 months. Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

4. Six months ago, a bond had a coupon rate of 10.14 percent, par value of $1000, YTM of 4.78 percent, and semi-annual coupons. Today, the bond’s price is 994.04 and the bond has 9 years until maturity. What was the current yield of the bond six months ago? The next coupon is due in 6 months. Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

5. Bond A has a coupon rate of 4.43 percent, a yield-to-maturity of 15.76 percent, and a face value of 1,000 dollars; matures in 12 years; and pays coupons annually with the next coupon expected in 1 year. What is (X + Y + Z) if X is the present value of any coupon payments expected to be made in 6 years from today, Y is the present value of any coupon payments expected to be made in 8 years from today, and Z is the present value of any coupon payments expected to be made in 15 years from today?

6. Reg owns investment A and 1 bond B. The total value of his holdings is $2,820. Bond B has a coupon rate of 8.80 percent, par value of $1000, YTM of 9.42 percent, 14 years until maturity, and semi-annual coupons with the next coupon due in 6 months. Investment A is expected to pay annual cash flows to Reg of $312 per year forever with the first annual cash flow expected in 1 year from today. What is the expected return for investment A? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Answer #1

2)

1. Today, a bond has a coupon rate of 8.18 percent, par value of
1,000 dollars, YTM of 6 percent, and semi-annual coupons with the
next coupon due in 6 months. One year ago, the bond’s price was
1,022.04 dollars and the bond had 19 years until maturity. What is
the current yield of the bond today? Answer as a rate in decimal
format so that 12.34% would be entered as .1234 and 0.98% would be
entered as .0098.
2....

Today, a bond has a coupon rate of 9.82 percent, par value of
1,000 dollars, YTM of 5.44 percent, and semi-annual coupons with
the next coupon due in 6 months. One year ago, the bond’s price was
986.71 dollars and the bond had 11 years until maturity. What is
the current yield of the bond today? Answer as a rate in decimal
format so that 12.34% would be entered as .1234 and 0.98% would be
entered as .0098.
Help on...

HW9 #1)
Today, a bond has a coupon rate of 6.62 percent, par value of
1,000 dollars, YTM of 11.3 percent, and semi-annual coupons with
the next coupon due in 6 months. One year ago, the bond’s price was
969.92 dollars and the bond had 10 years until maturity. What is
the current yield of the bond today? Answer as a rate in decimal
format so that 12.34% would be entered as .1234 and 0.98% would be
entered as .0098.

HW9 #2)
One year ago, a bond had a coupon rate of 11.1 percent, par
value of $1000, YTM of 5.42 percent, and semi-annual coupons.
Today, the bond’s price is 1,076.21 and the bond has 9 years until
maturity. What was the current yield of the bond one year ago? The
next coupon is due in 6 months. Answer as a rate in decimal format
so that 12.34% would be entered as .1234 and 0.98% would be entered
as .0098.

1. One year ago, a bond had a coupon rate of 10.5 percent, par
value of $1000, YTM of 7.96 percent, and semi-annual coupons.
Today, the bond’s price is 916.6 and the bond has 6 years until
maturity. What was the current yield of the bond one year ago? The
next coupon is due in 6 months. Answer as a rate in decimal format
so that 12.34% would be entered as .1234 and 0.98% would be entered
as .0098.

1. One year ago, a bond had a coupon rate of 9.78 percent, par
value of $1000, YTM of 7.12 percent, and semi-annual coupons.
Today, the bond’s price is 1,038.21 and the bond has 9 years until
maturity. What was the current yield of the bond one year ago? The
next coupon is due in 6 months. Answer as a rate in decimal format
so that 12.34% would be entered as .1234 and 0.98% would be entered
as .0098.

#1) Cy owns investment A and 1 bond B. The total value of his
holdings is 900 dollars. Bond B has a coupon rate of 4.9 percent,
par value of $1000, YTM of 10.5 percent, 22 years until maturity,
and semi-annual coupons with the next coupon due in 6 months.
Investment A is expected to produce annual cash flows forever. The
next cash flow is expected to be 60.4 dollars in 1 year, and
subsequent annual cash flows are expected...

1. Cy owns investment A and 1 bond B. The total value of his
holdings is 1,517 dollars. Bond B has a coupon rate of 8.4 percent,
par value of $1000, YTM of 8.42 percent, 17 years until maturity,
and semi-annual coupons with the next coupon due in 6 months.
Investment A is expected to produce annual cash flows forever. The
next cash flow is expected to be 70.82 dollars in 1 year, and
subsequent annual cash flows are expected...

Cy owns investment A and 1 bond B. The total value of his
holdings is 1,891 dollars. Bond B has a coupon rate of 8.88
percent, par value of $1000, YTM of 7.18 percent, 14 years until
maturity, and semi-annual coupons with the next coupon due in 6
months. Investment A is expected to produce annual cash flows
forever. The next cash flow is expected to be 79.59 dollars in 1
year, and subsequent annual cash flows are expected to...

HW9 #5)
Cy owns investment A and 1 bond B. The total value of his
holdings is 1,899 dollars. Bond B has a coupon rate of 6.2 percent,
par value of $1000, YTM of 6.38 percent, 17 years until maturity,
and semi-annual coupons with the next coupon due in 6 months.
Investment A is expected to produce annual cash flows forever. The
next cash flow is expected to be 57.27 dollars in 1 year, and
subsequent annual cash flows are...

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