A company must pay liabilities of 5000 in 6 months and 7000 in one year. The only investments available to the company are

A company has liabilities of $1,000 due in 6 months and $1,000 due in one year....

A company has liabilities of $1,000 due in 6 months and $1,000 due in one year. The assets available are: Bond A: A one-year $1,000 par bond with 4% coupons paid semiannually, with an annual effective yield of 6% Bond B: A 6 month $1,000 par bond with 6% coupon paid semiannually, with an annual effective yield of 8% What is the total purchase price of the portions of each bond that must be bought to exactly match the liabilities?...

Joe must pay liabilities of 1,000 due one year from now and another 2,000 due three...

Joe must pay liabilities of 1,000 due one year from now and another 2,000 due three years from now. There are two available investments: Bond I: A one-year zero-coupon bond that matures for 1,000. The yield rate is 6% per year Bond II: A two-year zero-coupon bond with face amount of 1,000. The yield rate is 7% per year. At the present time the one-year forward rate for an investment made two years from now is 6.5%. Joe plans to...

You pay $10,200 for a 12-year bond with a face value of $11,000 and semiannual coupons...

You pay $10,200 for a 12-year bond with a face value of $11,000 and semiannual coupons at a nominal annual rate of 6% convertible semiannually. The bond can be called at face value on any coupon date starting at the end of year 6. What is the minimum yield that you could receive, expressed as a nominal annual rate of interest convertible semiannually?

A company has liabilities of $1800 and $2150 due at the end of years 1 and...

A company has liabilities of $1800 and $2150 due at the end of years 1 and 2 respectively. The only investments available are 1-year 5% annual coupon bonds and 2-year 6% annual coupon bonds and both redeemable at par. How much of each bond (in terms of maturity values) should the company buy in order to exactly (absolutely) match the assets and liabilities.

Charlie Brown buys a 19-year bond with a face value of 5000 dollars that is redeemable...

Charlie Brown buys a 19-year bond with a face value of 5000 dollars that is redeemable at par and earns interest at 3.3 percent convertible semiannually. If the yield rate is 6.6 percent convertible semiannually, find the dirty price of the bond 2 months before the payment of the 12th coupon.

An n-year bond has face and redemption amount of $100. The bond has level semiannual coupons...

An n-year bond has face and redemption amount of $100. The bond has level semiannual coupons and the yield rate is a nominal annual rate of 6% compounded semiannually. The bond’s book value just after the 8th coupon is $121.30 and just after the 10th coupon, the book value is $120.39. Find the original purchase price of the bond.

Suppose the yields to maturity of 6-month, 12-month, 18-month and 24-month zero-coupon bonds are, respectively, 10%,...

Suppose the yields to maturity of 6-month, 12-month, 18-month and 24-month zero-coupon bonds are, respectively, 10%, 8%, 7%, and 6% per annum convertible semiannually. a.) What is the 2-year par yield? b.) Find the price of a 2-year semiannual coupon bond with coupon rate of interest of 3.0407% per annum and face value 100. c.) Comment of the result in b. PLEASE SHOW ALL WORK BY HAND, WITHOUT USING A FINANCE CALCULATOR OR EXCEL. THANK YOU.

d) The company is planning to issue 10-year semi-annual coupon bonds with a coupon rate of...

d) The company is planning to issue 10-year semi-annual coupon bonds with a coupon rate of 6% and a face value of $1,000. The effective annual yield to maturity of investors is expected to be 8% per annum. Calculate the required number (expressed in integer) of semi-annual coupon bonds to raise $20 million. e) Alternatively, XYZ Ltd is looking into issuing 15-year zero-coupon bonds with a face value of $1,000. The desired nominal yield to maturity of investors is expected...

Adam borrows an amount at an annual interest rate of 7%. He repays all interest and...

Adam borrows an amount at an annual interest rate of 7%. He repays all interest and principal in a lump sum at the end of ten years from now. Adam uses the amount borrowed to purchase a 5-year bond with a par value of 1, 000 with coupons at a nominal rate of 10% payable semiannually, with the first coupon paid at the end of 6-month period from now. The bond is redeemed at par and Adam’s yield rate for...

a) What is the value of a 6-year, 7.7% coupon, $1,000 face value bond that pays...

a) What is the value of a 6-year, 7.7% coupon, $1,000 face value bond that pays quarterly coupons, if its yield to maturity is 2.8%? Round to the nearest cent. b) You own a 17-year, 3.8% annual coupon bond with $1,000 face value. If the yield to maturity is 8.5%, what percentage of the bond's value comes from the present value of coupon payments? Answer in percent, rounded to one decimal place. c) Your company is undertaking a new investment...