Question

1. A 9-year zero coupon bond has a yield to maturity of

11.8 percent, and a par value of $1,000. What is the price of the bond?

2. A 7-year bond has a 8 percent coupon rate with the interest paid in semi annual payments. The yield to maturity of the bond is 2.3 percent, and a face value of $1,000. What is the price of the bond?

3. A 12-year bond has a 9 percent annual coupon, a yield to
maturity of

7.7 percent, and a face value of $1,000. What is the
price of the bond?

Answer #1

1.A 12-year bond has a 9 percent annual coupon, a yield to
maturity of
11.4 percent, and a face value of $1,000. What is the price of the
bond?
2.You just purchased a $1,000 par value, 9-year, 7 percent
annual coupon bond that pays interest on a semiannual basis. The
bond sells for $920. What is the bond’s nominal yield to
maturity?
a. 7.28%
b. 8.28%
c. 9.60%
d. 8.67%
e. 4.13%
f. None of
the above
3.A bond with...

You are purchasing a 20-year, zero-coupon bond. The annual yield
to maturity is 9.80 percent and the face value is $1,000. What is
the current market price? Assume (r) is bi-annual for compounding
purposes in case of zero-coupon bond.

5a- Compute the yield to maturity for a zero coupon bond with a
maturity of 14 years and a face value of $1000. The bond is selling
for $519.52. (Assume annual discounting.) (Round to 100th of a
percent and enter as a percentage, e.g. 12.34% as 12.34)
Answer:
5b- Compute the current yield on a bond with a yield to maturity
of 10.3%, a par value of $1000, a coupon rate of 6.0% paid
semi-annually, a remaining life of 18...

You are purchasing a 30-year, zero-coupon bond. The yield to
maturity is 8.68 percent and the face value is $1,000. What is the
current market price?

1. Omega Enterprises has an 8% coupon bond with exactly 16 years
to maturity. Interest is paid semi-annually. The bond is priced at
$1,125 per $1,000 of face value. a.) What is the yield to maturity
on this bond? b.)An investor purchased the bond at $1,125 and sold
it 5 years later at a price of $1,023. What was the investor’s
return. (Hint: calculate the YTM as in a) above but use the sale
price as the future value.
2....

You buy an 8 percent coupon, 10-year maturity bond when its
yield to maturity is 9 percent. One year later, the yield to
maturity is 10 percent. Assume the face value of the bond is
$1,000.
(a) What is the price of the bond today?
(b) What is the price of the bond one year later?
(c) What is your rate of return over the one-year holding
period?

The yield to maturity of a one year zero coupon bond is 4 % p.
a. and the yield to maturity for a two year zero coupon bond is 5 %
p. a. If the par value of a 10% coupon bond (coupons paid annually)
is $1,000 and it matures in two years its price will be:"
"$1,093.89 "
"$1,078.92 "
"$1,068.23 "
"$1,055.12 "

1. What is the yield on a 18-year bond that pays a semi-annual
coupon of $9 and sells for $1000. Answer as a percent.
2. You are looking at a 9-year zero-coupon bond that has a yield
to maturity of 1.4% . What is the value of the bond? Assume
semi-annual compounding.

soca co. offers a 9 percent coupon bond with semiannual payments
and a yield to maturity of 7.50 percent. The bonds mature in 18
years. What is the market price of a $1,000 face value bond?

1. A 30-year bond has a face value of $1,000 and a 9% coupon
rate, paid semi-annually. a. You buy the bond today when it has a
yield to maturity of 7%. Compute the price of the bond today.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 3 minutes ago

asked 4 minutes ago

asked 14 minutes ago

asked 14 minutes ago

asked 16 minutes ago

asked 17 minutes ago

asked 20 minutes ago

asked 22 minutes ago

asked 24 minutes ago

asked 24 minutes ago

asked 27 minutes ago