In February 2015 Treasury 4 5/8s of 2042 offered a semiannually compounded yield to maturity of...

In February 2015 Treasury 4 5/8s of 2042 offered a semiannually compounded yield to maturity of 2.72%. Recognizing that coupons are paid semiannually, calculate the bond's price. Assume face value is $1,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Bond price $？？

Expert Solution

Total no. Of years = 2042-2015 = 27 years

YTM = 2.72%

coupon rate is not given, we will consider it zero.

Price of bond = Interest /(1+ytm)^1 + interest /(1+ytm)^2 + Interest /(1+ytm)^n + principal (1+ytm)^n

Price of bond = 0+ 1000(1+0.0272)^27

=$484.52 as Price of bond

jeff jeffy answered 2 years ago

A ten-year 5% bond with semiannual coupons is purchased to yield 6% compounded semiannually. The par...

A ten-year 5% bond with semiannual coupons is purchased to yield 6% compounded semiannually. The par value and redemption value are both $1,000. What is the book value of the bond six years after issue of the bond? A. Less than $960 B. At least $960, but less than $965 C. At least $965, but less than $970 D. At least $970, but less than $975 E. At least $975

What is the yield to maturity on a Treasury STRIPS with 13 yearsto maturity and...

What is the yield to maturity on a Treasury STRIPS with 13 years to maturity and a quoted price of 68.779? A U.S. Treasury bill with 140 days to maturity is quoted at a discount yield of 1.07 percent. What is the bond equivalent yield?

What is the yield to maturity on a Treasury STRIPS with 12 years to maturity and...

What is the yield to maturity on a Treasury STRIPS with 12 years to maturity and a quoted price of 59.705? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

what is the price in dollar of the February 2000 Treasury note with semiannually payment if...

what is the price in dollar of the February 2000 Treasury note with semiannually payment if its par value is $100,000? what is the current yield of this note? Treasury notes and bonds. use the information in the following table today is February 15, 2008 type,issue, price, coupon,maturity, YTM,current, rating type. bond issue. Feb 2000 price. - coupon rate. 6.00% Maturity date. 2-15_2010 YTM. 3.819% current yield. - rating. AAA

Lisa Richter made a one time deposit of $5,000 at 4% compounded semiannually for 5 years....

Lisa Richter made a one time deposit of $5,000 at 4% compounded semiannually for 5 years. What would her balance be at the end of five years assuming she is still earning 4% compounded semiannually?

Demonstrate that the return (or yield) on the following asset is 10%, compounded semiannually. Cash Flow...

Demonstrate that the return (or yield) on the following asset is 10%, compounded semiannually. Cash Flow received every six months: $40 Number of years the cash flows are expected to continue: 3 years Terminal (last) cash flow: $1,080 Price: $1,009

5-year Treasury bonds yield 5.2%. The inflation premium (IP) is 1.9%, and the maturity risk premium...

5-year Treasury bonds yield 5.2%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free rate, r*?

5-year Treasury bonds yield 5.9%. The inflation premium (IP) is 1.9%, and the maturity risk premium...

5-year Treasury bonds yield 5.9%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free rate, r*? Select the correct answer. a. 2.90% b. 3.25% c. 2.55% d. 3.60%

A BBB-rated corporate bond has a yield to maturity of 7.1 %. A U.S. treasury security has a yield to maturity of 5.2 %.

A BBB-rated corporate bond has a yield to maturity of 7.1 %. A U.S. treasury security has a yield to maturity of 5.2 %. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 5.8 % and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the treasury bond?b. What is the price (expressed as a percentage of the face value) of...

Calculate the yield to maturity on the following bonds: a. A 9.2 percent coupon (paid semiannually)...

Calculate the yield to maturity on the following bonds: a. A 9.2 percent coupon (paid semiannually) bond, with a $1,000 face value and 17 years remaining to maturity. The bond is selling at $975. b. An 8.2 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $905. c. An 11.2 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond...

Question