Question

Consider a coupon bond that has a face value of $1000, has a
yield of 16%,

pays a semi annual coupon of 70, and matures in one year. Assuming
that the

bond will pay the face value amount that the cost coupon payment on
the

maturity date. Calculate the price of the bond.

Answer #1

(a) Consider a 14-year, 9.5%
corporate bond with face value $10,000. Assume that the bond pays
semi-annual coupons. Compute the fair value of the bond today if
the nominal yield-to-maturity is 11% compounded semi-annually.
(b) Consider a 11-year,
corporate bond with face value $1,000 that pays semi-annual coupon.
With the nominal yield-to-maturity equal to 10%, the bond is
selling at $802.5550. Find the coupon rate for this bond. Assume
that the market is in equilibrium so that the fair value...

What is the price of a $1000 face value zero-coupon bond with 4
years to maturity if the required return on these bonds is 3%?
Consider a bond with par value of $1000, 25 years left to
maturity, and a coupon rate of 6.4% paid annually. If the yield to
maturity on these bonds is 7.5%, what is the current bond
price?
One year ago, your firm issued 14-year bonds with a coupon rate
of 6.9%. The bonds make semiannual...

A bond has a Face Value of $1000, Coupon rate of 7%,
Yield/market interest is 11%. The bond has a time to maturity of 9
years. Assuming annual coupon payments, how does a 1% increase in
interest rates affect the price of the bond? What is the new price
of the bond?

Chavez Industries, has an outstanding bond that has a $1000 face
value and a 6.4% coupon rate. Interest is paid semi-annually. The
bond has 7 years remaining until it matures. Today the interest
rate on similar risk bonds is 5.7% and it is expected to remain at
this level for many years in the future. Compute the following: A).
The bond’s current price B). The bond’s price one year from today
C). The current yield the bond will generate this...

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...

A bond has a face value of $1000 with a time to maturity ten
years from now. The yield to maturity of the bond now is 10%.
a) What is the price of the bond today, if it pays no
coupons?
b) What is the price of the bond if it pays annual coupons of
8%?
c) What is the price today if pays 8% coupon rate
semi-annually?

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

What is yield to maturity of $1000 face-value 8% coupon bond
with a selling price of $1010 that has 1 year left to maturity?
Assuming no inflation, under what conditions will this coupon bond
have a negative yield (think about its selling price)? What about
any coupon bond with any maturity?

A bond has a coupon ate of 10%, a 1000$ face value, matures in 5
years, has a yield of maturity of 15% percent and pays interest
annually. What is the current yield?

A 6% coupon bond Which face value $1000, Maturity of five years
and paying semi-annual coupon payment sales of $1050
A) What is yield to maturity.
b) what would happen if yield to maturity if it’s price suddenly
falls to $900.

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