Question

16. A 10-year bond, $100 face value bond with a 8% coupon rate and semi-annual coupons has a yield maturity of 5%. The bond should be trading at a price of $.___ Round to the nearest cent.

17. XYZ company has just issued a 30-year bond with a coupon rate of %7.5 (annual coupon payments) and a face value of $1,00. If the yield to maturity is 11%, what is the price of the bond. Round to the nearest cent.

There is a 1% tolerance for errors. For example, if the correct answer is 1.00, then any number between 0.99 and 1.01 will be correct answers.

Answer #1

Bond Price Formula:

Where,

C = Periodic coupon payment,

P = Face value of bond,

r = Yield to maturity

n = Number of periods till maturity

**16.Since it pays semi-annual coupons**

C = ($100 *8%)/2 = $4.00

r = 5% / 2 = 2.50% = 0.025

P = $100

n = 10 *2 = 20

Substituting the values, we get:

**Therefore, the bond should be trading at the price
of $123.38.**

**.**

**17. Given:**

C = $100 * 7.5% = $7.5

r = 11% = 0.11

n = 30 years

P = $100

Substituting the values. we get:

**Price of bond is $69.57**

a 10-year bond, $1,000 face value bond with a 8% coupon rate and
semi-annual coupons has a yield to maturity of 12%. the bond should
be trading at the price of? round to nearest cent

What is the price of a 4-year bond with a coupon rate of 10% and
face value of $1,000? Assume the bond is trading at 10% yield, and
that coupons are paid semi-annually. Assume semi-annual
compounding.
Round your answer to the nearest cent (2 decimal places).
What is the yield of a 3-year bond with a coupon rate of 9% and
face value of $100? Assume the bond is currently trading at a price
of $100, and that coupons are...

Suppose a ten-year, $ 1 000 bond with an 8.2 % coupon rate and
semi-annual coupons is trading for a price of $ 1 034.76. a. What
is the bond's yield to maturity (expressed as an APR with
semi-annual compounding)? b. If the bond's yield to maturity
changes to 9.3 % APR, what will the bond's price be? a. The
bond's yield to maturity is nothing%. (Enter your response as a
percent rounded to two decimal places.) b. The...

Suppose a 10 year bond with an 8/7% coupon rate and
semi annual coupons is trading for $1035.91
a. What is the bonds yield to maturity ( expressed as an APR with
semiannual compounding)?
b. If the bonds yield to maturity changes to 9/1% APR what will be
the bonds price?

Suppose a 10-year, $1,000 bond with an 8.8% coupon rate and
semi-annual coupons is trading for a price of $1,035.81.
a. What is the bond's yield to maturity (expressed as an APR
with semi-annual compounding)?
b. If the bond's yield to maturity changes to 9.1% APR, what
will the bond's price be?

Suppose a 5-year bond with a 5% coupon rate, semiannual coupons
and a face value of $1000 has a yield to maturity of 8% APR.
What is the bond’s yield to maturity expressed as an effective
semi-annual rate? What is the bond’s yield to maturity expressed as
an effective annual rate (EAR)?
What is the price of the bond?
If the bond’s yield to maturity changes to 5% APR, what will the
bond’s price be?

Suppose a 9-year bond with $100 face value, 2.00% coupon rate
and annual coupons is currently trading at a price of $104.00. All
else constant, if the yield to maturity of the bond suddenly
changes to 7.00% APR, what will happen to this bond’s price?
Group of answer choices
it will increase by $39.118
it will decrease by $36.576
it will stay the same
it will decrease by $36.974

What is the value of a 5-year, 8.0% coupon rate, $1,000 face
value bond with semi-annual coupon payments, if similar bonds (same
maturity, same risk profile) are trading at a yield to maturity of
6.25%?

What is the value of a 18-year, 7.5% coupon, $1,000 face value
bond that pays quarterly coupons, if its yield to maturity is 7%?
Round to the nearest cent.

A semi-annual bond has a face value of $10,000, a coupon rate of
9.9%, a yield to maturity of 11.1% and has 4 years remaining to
maturity. What is the price of the bond?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 17 minutes ago

asked 28 minutes ago

asked 46 minutes ago

asked 55 minutes ago

asked 57 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago