Question
In: Finance
1. A zero-coupon bond matures in 16 years. At a market discount rate of 7 percent...
1. A zero-coupon bond matures in 16 years. At a market discount rate of 7 percent per year and assuming annual compounding, the price per hundred dollars of par value is $__________ . (Do not include the dollar sign in your answer. Round to the nearest cent).
2.A bond offers a annual coupon rate of 12 percent, with interest paid semiannually. The bond matures in 9 years. At a market discount rate of 0.08 , what is the price of this bond per hundred dollars of par value? (Do not include the dollar sign in your answer. Round to the nearest cent).
3. A bond offers a annual coupon rate of 12 percent, with interest paid semiannually. The bond matures in 9 years. At a market discount rate of 0.08 , what is the price of this bond per hundred dollars of par value? (Do not include the dollar sign in your answer. Round to the nearest cent).
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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rate of 4.5% per year and assuming annual compounding, the price of
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Group of answer choices
71.62
51.30
51.67
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places.)
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A 9.5 percent semiannual coupon bond matures in 7 years. The bond has a face value...
A 9.5 percent semiannual coupon bond matures in 7 years. The
bond has a face value of $1,000 and a current yield (CY) of 9.77
percent. What is the bond’s yield to maturity (YTM)?
a.
9.77%
b.
5.23%
c.
10.46%
d.
9.50%
e.
10.06%
A zero-coupon bond has a principal of $100 and matures in four years. The market price...
A zero-coupon bond has a principal of $100 and matures in four
years. The market price for the bond is $72. Calculate the yield to
maturity, duration and convexity of the bond.
(Please provide a well detailed answer with the equations that
are being used. Thank you!)
A bond that matures in 6 years has an 8 percent coupon rate,semiannual payments, a...
A bond that matures in 6 years has an 8 percent coupon rate,
semiannual payments, a face value of $1,000, and a 7.7 percent
current yield. What is the bond’s nominal yield to maturity
(YTM)?
A $1,000 par value bond matures in 8 years. It has a 7% coupon rate, with...
A $1,000 par value bond matures in 8 years. It has a 7% coupon
rate, with semi-annual interest payments. The yield (the rate at
which investors are using to calculate the price of the bond) is
8%. What is the fair market value of the bond?
Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 9...
Zero Coupon Bond Price Calculate the price of a
zero coupon bond that matures in 9 years if the market interest
rate is 8 percent. Assume semi-annual interest payments and $1,000
par value. (Round your answer to 2 decimal places.)
Multiple Choice
$920.00
$500.25
$493.63
$1,000.00
A bond has a 10 percent coupon rate, makes annual payments, matures in 12 years, and...
A bond has a 10 percent coupon rate, makes annual payments,
matures in 12 years, and has a yield-to-maturity of 7 percent.
1. Eleven years from now the bond will have 1 year until
maturity. Assume market interest rates are at 7 percent, the same
place they were when the bond was issued. Given this: k. What will
be the bond’s price 11 years from now? l. What will be the current
yield eleven years from now? m. What is...
A bond has a 10 percent coupon rate, makes annual payments, matures in 12 years, and...
A bond has a 10 percent coupon rate, makes annual payments,
matures in 12 years, and has a yield-to-maturity of 7 percent.
One year from now the bond will have 11 years until maturity.
Assume market interest rates decrease to 5 percent. Given this: i.
What will be the bond’s price one year from now? j. If you
purchased the bond at the price in (a) and sold the bond at the
price in (i) what would be your capital...
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