Question

a
coupon bond that pays interest annually has par vaiue of $1000
mature in two years and has required rate of return of 10%. the
intrinsic vakue of the bond today will be......... if the the
coupon rate is 6%

Answer #1

Information provided:

Face value= future value= $1,000

Time= 2 years

Coupon rate= 6%

Coupon payment= 0.06*1,000= $60

Yield to maturity= 10%

The intrinsic value of the bond is calculated by computing the present value.

Enter the below in a financial calculator to compute the present value:

FV= 1,000

PMT= 60

I/Y= 10

N= 2

Press the CPT key and PV to compute the present value.

The value obtained is 930.58.

Therefore, the intrinsic value of
the bond is **$930.58.**

Price A $1000 par value bond will mature in 10 years. This
bond pays a coupon of $90 every year. If investors require an
annual return of 6%, what is the current price of this bond? Assume
annual payments. What is the price if the required rate of return
is 8%? What is the price if the required rate of return is 10%? How
is the bond price related to the interest rate?

"A coupon bond that pays interest annually has a par value of
$1000, matures in 5 years, and has a yield to maturity of 6%. If
the coupon rate is 10%, the value of the bond today will be
__________. Note: Express your answers in strictly numerical terms.
For example, if the answer is $500, write enter 500 as an
answer."

A coupon bond that pays interest semi-annually has a par value
of $1,000, matures in five years, and has a yield to maturity of
10%. The intrinsic value of the bond today will be __________ if
the coupon rate is 8%.
Multiple Choice
$1,077.20
$1,075.80
$922.78
None of the options
$924.16

A $1000 par value bond will mature in 10 years. This bond pays a
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8%, what is the current price of this bond? Assume annual
payments.

The $1000 face value 9% coupon bond pays interest semi-annually.
The bond will mature in 3-years. Find the Convexity if it sells for
$980.
(A) $17.84
(B) $21.84
(C) 19.94
(D) 17.94

Bond A pays 12% coupon annually, has a par value of $1,000 and
will mature in 3 years. Using a 10% discount rate
(Yield-to-Maturity). Using your information on Bond A , what is the
(Macaulay) duration of the bond?
Group of answer choices 2.70 Years 2.54 Years 2.89 Years 2.20
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a. Consider a coupon bond that pays interest of $60 annually,
has a par value of $1,000, matures in 2 years, and is selling today
at a price of $1000. What is the yield to maturity on this
bond?
b. Consider a zero-coupon bond with a par value of $1,000 that
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on this bond? Give the formula, and solve.
c. For the bond in part (b) above,...

A $1000 par value bond has a coupon rate of 7.7%, pays interest
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discount from par value. What is the annual yield to maturity of
this bond? (Answer to the nearest one hundedth of a percent, i.e.,
1.23 but do not include the % sign).

q1 - A coupon bond that pays interest semiannually has a par
value of $1,000, matures in 5 years, and has a yield to maturity of
6.5%. If the coupon rate is 3.5%, the intrinsic value of the bond
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Q-2 you purchased s coupon bond at a price of 1059. the coupon
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bond at 1066.13 one year later. how much us one...

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$1000, matures in 5 years, and has a yield to maturity of 16%. If
the coupon rate is 10%, the value of the bond today will be
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