Question

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

Answer #1

A semi-annual bond has a face value of $1,000, a coupon rate of
7.2%, a yield to maturity of 5.5% and has 5 years remaining to
maturity. What is the price of the bond?

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.

An
8%, semi-annual coupon bond has a $1,000 face value and matures in
8 years. What is the current yield on this bond if the yield to
maturity is 7.8%?

Johnston, Inc. is selling bonds for $775.37. Each bond has an 8%
coupon rate and makes payments semi-annually. The bond matures in
25 years. What is the bond’s yield-to-maturity?
Shieldsly, Inc. has a 9 percent coupon bond that matures in 5
years. The bond pays interest annually. What is the market price of
a $1,000 face value bond if the yield to maturity is 7.56
percent?
$1,126.64
$1,000.00
$1,146.13
$1,058.17
$363.55

A bond has a face value of $1,000, a coupon rate of 8%, and a
maturity of 10 years. The bond makes semi-annual coupon
payments. The bond’s yield to maturity is
9%. In Excel, the =PV formula can be used to find the
price of the bond. Fill in the table with the
appropriate values:
RATE
NPER
PMT
FV
TYPE

A corporate bond has
17 years to maturity, a face value of $1,000, a coupon rate of 5.3%
and pays interest semiannually. The annual market interest rate for
similar bonds is 3.2% and is quoted as a semi-annually compounded
simple interest rate, i.e 1.6% per 6-month period.
What is the price of
the bond?

A bond pays annual interest. Its coupon rate is 9.6%. Its value
at maturity is $1,000. It matures in 4 years. Its yield to maturity
is currently 6.6%. The modified duration of this bond is ______
years.

What is the value of a bond that pays a 6% semi-annual coupon,
has a face value of $1,000, matures in 20 years, and has a yield to
maturity of 8%?
Question 45 options:
$803.64
$808.43
$805.12
$802.07

A 10-year bond has a face value of $1,000 with a 5% per annum
coupon rate. The bond pays coupons semi-annually. The current yield
to maturity of the bond is 4% per annum. After 5 years, the yield
to maturity of the bond is predicted to increase to 6% per annum,
what would be the value of the bond in Year 5?

A bond has a face value of $1,000, a coupon rate of 8%, and a
maturity of 10 years. The bond makes semi-annual coupon
payments. The bond’s yield to maturity is
9%. In Excel, the =PV formula can be used to find the
price of the bond. Fill in the table with the
appropriate values:
RATE
NPER
PMT
FV
TYPE
Repeat problem , but with annual coupon payments.
RATE
NPER
PMT
FV
TYPE

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