Question
In: Finance
A bond with 15 years to maturity is paying 6% coupons semi-annually, and the last coupon...
A bond with 15 years to maturity is paying 6% coupons semi-annually, and the last coupon has just been paid. The face value is $1,000 and the yield to maturity is 8% p.a. What is the price today closest to: A) $827.08 B) $932.95 C) $1,000.00 D) $1,324.32 E) None of the above
Solutions
jeff jeffy answered 6 months agoRelated Solutions
A bond with exactly five years until maturity paying 6% p.a. coupons semi-annually and with a...
A bond with exactly five years until maturity paying 6% p.a.
coupons semi-annually and with a face value of $100 was purchased
at a yield of 6.5% p.a. The bond was sold exactly two years later
for a yield of 5% p.a. All coupons were reinvested at 6% p.a.
Calculate the realised yield-to-maturity on this bond.A bond with
exactly five years until maturity paying 6% p.a. coupons
semi-annually and with a face value of $100 was purchased at a
yield...
Suppose there is a 15 year bond with at 5.5% coupon rate, paying coupons semi-annually, and...
Suppose there is a 15 year bond with
at 5.5% coupon rate, paying coupons semi-annually, and a face value
equal to $1000. Suppose the yield to maturity is
6.5%,
and the bond is
currently selling at $1050. Should you buy the bond? Explain.
Suppose you have obtained a $15,000 loan at an APR of 16%, with
annual payments.
loan term is 5 years
Fill out the first
year of the amortization schedule for this loan:
Year
Begin Balance
Total Payment
Interest...
Suppose there is a 15 year bond with at 5.5% coupon rate, paying coupons semi-annually, and...
Suppose there is a 15 year bond with
at 5.5% coupon rate, paying coupons semi-annually, and a face value
equal to $1000. Suppose the yield to maturity is 6.5%,
and the bond is currently selling at $1050. Should you buy the
bond? Explain.
Suppose you have obtained a $15,000 loan at an APR of 16%, with
annual payments.
Fill out the first
year of the amortization schedule for this loan:
Year
Begin Balance
Total Payment
Interest Paid
Principal Paid
End Balance...
A bond with exactly five years until maturity paying 3% p.a. coupons semi-annually and with a...
A bond with exactly five years until maturity paying 3% p.a.
coupons semi-annually and with a face value of $100 was purchased
at a yield of 3.5% p.a. The bond was sold exactly two years later
for a yield of 2% p.a. All coupons were reinvested at 3% p.a.
Calculate the realised yield-to-maturity on this bond.
RCL issues a 7-year fixed coupon bond paying coupons semi annually at a coupon rate of 7.50%.
RCL issues a 7-year fixed coupon bond paying coupons
semi annually at a coupon rate of 7.50%. The bonds current price as
a percentage of par is $92.0185 and its future value is $1000.a. What is the bonds YTM ?b. What is the bonds Duration?
A 6% coupon bond paying interest semi-annually has a modified duration of 11 years, sells for...
A 6% coupon bond paying interest semi-annually has a modified
duration of 11 years, sells for $850, and is priced at a yield to
maturity (YTM) of 6.90%. If the YTM increases to 7.65%, the price,
using the concept of duration, is predicted to:
Group of answer choices
decrease by $67.54
decrease by $72.54
decrease by $70.13
decrease by $67.79
decrease by $65.60
An investor buys 6% semi-annual coupon paying bond with six years to maturity and $1000 par...
An investor buys 6% semi-annual coupon paying bond with six
years to maturity and $1000 par value at $906.15.The bond has a YTM
of 8%. For all the calculations ,keep four digits after the decimal
place
b)Calculate the bond's modified duration
c)If the interest rate increases by 20 basis points, what is the
approximate value of the bond by using modified duration?
d)What is the real value of the bond after the change (using the
bond pricing formula )?
Coupon rate for a $1000 corporate bond is 9%. This bond is paying coupon semi-annually and...
Coupon rate for a $1000 corporate bond is 9%. This bond is
paying coupon semi-annually and will mature in 9 years. If the
current market yield for this bond is 8%, what would be the value
of this bond?
IBM’s bond has 5 years remaining to maturity. Coupons are paid semi-annually. The bonds have a...
IBM’s bond has 5 years remaining to maturity. Coupons are paid
semi-annually. The bonds have a $1,000 par value, and the coupon
rate is 5%. The current price of the bond is $1050. What is the
yield to maturity?
A 20-year maturity $1,000 par value 9% coupon bond paying coupons annually is callable in five...
A 20-year maturity $1,000 par value 9% coupon bond paying
coupons annually is callable in five years at a call price of
$1,050. The bond currently sells at a yield to maturity of 8%. What
is the yield to call?
please show full steps of the work. thank you!!!
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