Question

Price the following:

12-year, $1000 par value, 6% semi-annual coupon bond whose current nominal yield-to-maturity (YTM) is 8%.

10-year, $1000 par value, 8% quarterly coupon bond whose current nominal YTM is 7%.

30-year, $1000 par value, zero-coupon bond whose current nominal YTM is 9.5%.

13-year, $1000 par value, 8% monthly coupon bond whose current nominal YTM is 10%.

5-year, $500 par value, 8% semi-annual coupon bond whose current nominal YTM is 8.25%

Answer #1

We can use PV() function to price these bonds

1,

2.

3.

future value = 1000

Time 30

Yield = 9.5%

Price = Face value / (1+yield)^time

Price = 1000 / (1.095)^30

**Price =65.70**

**4.**

**5.**

**LET ME KNOW IF YOU HAVE ANY DOUBTS**

18. Compute the yield to maturity of a $2,500 par value bond
with a coupon rate of 7.8% (quarterly payments - that is, four
times per year) that matures in years. The bond is currently
selling for $3,265
19. What is the yield to maturity of a $ par value bond with a
coupon rate of 9.5% (semi-annual coupon payments) that matures in
28 years assuming the bond is currently selling for
$838.137
par
value 1000

The price of a ten-year semi-annual pay bond with a par value of
$1,000 and a 7 percent annual coupon and yield to maturity of 8.25
percent is closest to:

The yield-to-maturity (YTM) on one-year bond with zero coupon
and face value $ 1000 is 5 %. The YTM on two-year bond with 5 %
coupon paid annually and face value $ 1000 is 6 %. (i) What are the
current prices of these bonds? (ii) Find Macaulay durations of
these bonds. Consider a third bond which is a zero coupon two-year
bond with face value $ 1000. (iii) What must be the price of the
third bond so that...

The price of a ten-year semi-annual pay bond with a par value of
$1,000 and a 7 percent annual coupon and yield to maturity of 8.25
percent is closest to: a) 1051.48 b) 900.23 c) 915.99 d) 949.60

The price of a ten-year semi-annual pay bond with a par value of
$1,000 and a 7 percent annual coupon and yield to maturity of 8.25
percent is closest to:please give step by step solutions!
915.99
1051.48
949.60
900.23

1A) Calculate the yield to maturity (i.e., YTM) for the
following bond. The bond matures in 18 years, has a coupon rate of
8.8% with semi-annual payments. The par value of the bond is $1000,
while the current market value equals $653.08. (Round to 100th
of a percent and enter your answer as a percentage, e.g., 12.34 for
12.34%)
1B) How much would you pay for a zero coupon bond with a par
value of $1000, a maturity of 5...

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...

Consider a 6-year, $1,000 par bond that pays semi-annual
coupon. Its yield to maturity is 7% and is selling for $1,095.452?
Find the coupon rate of this bond.

You are considering investing in a $1000 face value 8%
semi-annual coupon bond with 3 years left to maturity.
Similar bonds are yielding 9.5% in the market, so the current price
of this bond is _______, and if market interest rates drop to 8.25%
the selling price of the bond would _____________?

The semi-annual bonds of Delta Company have a coupon rate of 6%,
a Yield to Maturity of 8%, a par value of $1,000, and 20-years to
maturity.
a. Calculate the price of a Delta Company bond today.
b. What will be the price of a Delta Company bond in 1 year if
the YTM decreases to 7%?

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