Question

1. Calculate bond price if the coupon payment is 8%, yield for the bond is 10%, bond's face value is 1,000 and matures in 6, if paid semi-annually

(Enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23)

2. Calculate the annual coupon payment if the semi-annual coupon paying bond price is $803, the yield for the bond is 5%, the bond's face value is $1,000 and matures in 6 years.

(Enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23)

Answer #1

1. Compute the price of a $1,000 par value, 10 percent
(semi-annual payment) coupon bond with 27 years remaining until
maturity assuming that the bond's yield to maturity is 15 percent?
(Round your answer to 2 decimal places and record your answer
without dollar sign or commas).

Compute the price of a $1,000 par value, 6 percent (semi-annual
payment) coupon bond with 24 years remaining until maturity
assuming that the bond's yield to maturity is 14 percent? (Round
your answer to 2 decimal places and record your answer without
dollar sign or commas).

Compute the price of a $1,000 par value, 12 percent (semi-annual
payment) coupon bond with 21 years remaining until maturity
assuming that the bond's yield to maturity is 14 percent? (Round
your answer to 2 decimal places and record your answer without
dollar sign or commas).

Compute the price of a $1,000 par value, 9 percent (semi-annual
payment) coupon bond with 30 years remaining until maturity
assuming that the bond's yield to maturity is 18 percent? (Round
your answer to 2 decimal places and record your answer without
dollar sign or commas).

PRICE AND YIELD
An 8% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 8.4446%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$
What is the bond's YTM? (Hint: Refer to Footnote 7 for the
definition of the current yield and to Table 7.1.) Do not round
intermediate calculations. Round your answers to two decimal
places.

1. Calculate the price of a bond with Face value of bond is
$1,000 and:
a. Bond yield of 8.4%, coupon rate of 7% and time to maturity is
5 years. Coupon is paid semi-annually (Bond 1)
b. Bond yield of 7%, coupon rate of 8% and time to maturity is 4
years. Coupon is paid semi-annually
c. Calculate the price of Bond 1 right after the 5th coupon
payment.

What is the price of a 5-year bond paying an annual coupon rate
of 9.4%, but paying it semiannually, per face (par) value of $1,000
if the annual market rates for these bonds are
12.2%? Answer to the nearest cent, xxx.xx and
enter without the dollar sign.

A bond
makes annual coupon payment of $65. If it offers a yield to
maturity of 9.5 % :
What
is the price of the bond knowing that it matures in five
years?
What
would have been the price if it was paying semi-annual coupons for
five years?

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.

The $1,000 face value ABC bond has a coupon rate of
6%, with interest paid semi-annually, and matures in 5 years. If
the bond is priced to yield 8%, what is the bond's value today?

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