A bond has a coupon rate of 7% and has 5 years until maturity.
If the...
A bond has a coupon rate of 7% and has 5 years until maturity.
If the current yield to maturity is 5%, what is the price of the
bond? What is the amount of the annual interest payment paid to the
bondholder?
1. A bond has a coupon rate of 7% and has 5 years until maturity
and the yield to maturity is 5%. (4 points) a. What is the price of
the bond? ___________________ (2 points) b. How much annual
interest is paid to the bondholder? _____________ (2 points) 2. A
zero-coupon bond with a 20-year maturity, has a yield to maturity
of 6% and a par value of $100,000? a. What is the price of the
bond? ______________. (2 points)...
A 20-year fixed coupon bond has 12 years left until
maturity. It has a 7% coupon rate paid
SEMI-ANNUALLY. If the price of the bond is $850, what is
the annual yield?
a. 9.08%
b. 4.56%
c. 9.11%
d.4.54%
e. 8.60%
A $1,000 bond with a coupon rate of 5% paid semi-annually has 7
years to maturity and a yield to maturity of 9%. The price of the
bond is closest to $________. Input your
answer without the $ sign and round your answer to
two decimal places.
Consider a bond that has a coupon rate of 7%, three years to
maturity, and is currently priced to yield 5%. Calculate the
following: Macaulay duration Modified duration Percentage
change in price for a 1% increase in the yield to maturity
A bond has 8 years until maturity, a coupon rate of 8%, and
sells for 1,100
a. If the bond has a yield to maturity of 8% 1 year from now,
what will its price be? Price $
b. What will be the rate of return on the bond? (Negative value
should be indicated by a minus sign. Do not round intermediate
calculations. Round your answer to 2 decimal places.) Rate of
return %
c. If the inflation rate during...
A municipal bond has 6 years until maturity and sells for
$5,420. If the coupon rate on the bond is 6.6 percent, what is the
yield to maturity?
Please explain each step thoroughly
You find a bond with 29 years until maturity that has a coupon
rate of 9.5 percent and a yield to maturity of 8.9 percent. Suppose
the yield to maturity on the bond increases by 0.25 percent.
a. What is the new price of the bond using
duration and using the bond pricing formula?
Estimated price:
Actual price:
b. Now suppose the original yield to maturity
is increased by 1 percent. What is the new price of the bond?
Estimated...
A bond has 10 years until maturity, carries a coupon rate of 9%,
and sells for $1,100. Interest is paid
annually.
a/ If the bond has a yield to maturity of 9% 1 year from now, what
will its price be at that time?
b/ What will be the rate of return on the bond?
c/ Now assume that interest is paid semiannually. What will
be the rate of return on the bond?
d/ If the inflation rate during the...