1. Construct a bond amortization schedule for a $100 par value 2-year bond with 7% coupons...

1. Construct a bond amortization schedule for a $100 par value 2-year bond with 7% coupons paid semiannually, redeemable at par and bought to yield 4% per annum.

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jeff jeffy answered 7 months ago

7. Construct a LOAN AMORTIZATION schedule for a 3 year 5% loan of $100, 000. Please...

7. Construct a LOAN AMORTIZATION schedule for a 3 year 5% loan of $100, 000. Please show your calculations clearly and include calculated answers in the table below. (Please only do this question if you are certain how to do it) Amortization Schedule for a Loan of $100 000 Repaid Over 3 Years at 5% Year Payment amount Interest Paid Principal repaid Outstanding loan balance 0 1 2 3

A 2-year $100 par value bond pays 10% monthly coupons is sold at par. Determine its...

A 2-year $100 par value bond pays 10% monthly coupons is sold at par. Determine its effective annual rate.

A 3-year $100 par value bond pays 9% annual coupons. The spotrate of year 1...

A 3-year $100 par value bond pays 9% annual coupons. The spot rate of year 1 is 6%, the 2- year spot rate is 12%, and the 3-year spot rate is 13%.a) Determine the price of the bondb) Determine the yield to maturity of the bondA 2-year $100 par value bond pays 5% semi-annual coupons. The 6-month spot rate is 2%, the 1-year spot rate is 2.5%, the 18-month spot rate is 3% and the 2-year spot rate is 4%.c)...

A $100 par value bond with 2% annual coupons and maturing at $105 in 3 years....

A $100 par value bond with 2% annual coupons and maturing at $105 in 3 years. Given an effective annual interest rate of 5%, a) Compute the Macaulay convexity of this asset. b) Compute the modified convexity of this asset.

A 7-year $1000 par value bond with 10% semiannual coupons was sold on April 1, 2000,...

A 7-year $1000 par value bond with 10% semiannual coupons was sold on April 1, 2000, which yields 8% convertible semiannually. The coupons were payable at the beginning of October and April after the purchase. On June 25, 2005, the owner wished to know the dirty and clean values of this bond. Use both theoretical method and practical method, with the “30/360” method for figuring day counts. (Answers: $1055.44, $1032.35 by theoretical method, $1055.64, $1032.31 by practical method). Please show...

A 2-year $100 par value bond pays 10% monthly coupons is sold atpar. Determine its...

A 2-year $100 par value bond pays 10% monthly coupons is sold at par. Determine its effective annual rate

Both Bond A and Bond B have 7 % coupons, are priced at par value, and...

Both Bond A and Bond B have 7 % coupons, are priced at par value, and make semiannual payments. Bond A has 5 years to maturity, whereas Bond B has 15 years to maturity. A) If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond A? B) If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond B? C) If rates were to suddenly...

A 2-year $100 par value bond pays 5% semi-annual coupons. The 6-month spot rate is 2%,...

A 2-year $100 par value bond pays 5% semi-annual coupons. The 6-month spot rate is 2%, the 1-year spot rate is 2.5%, the 18-month spot rate is 3% and the 2-year spot rate is 4%. Determine the price of the bond Determine the yield to maturity of the bond

Both Bond A and Bond B have 7 percent coupons and are priced at par value....

Both Bond A and Bond B have 7 percent coupons and are priced at par value. Bond A has 7 years to maturity, while Bond B has 18 years to maturity. If interest rates suddenly rise by 2 percentage points, what is the difference in percentage changes in prices of Bond A and Bond B? (i.e., Bond A - Bond B). The bonds pay coupons twice a year. (A negative value should be indicated by a minus sign. Do not round...

Consider a 2-year Treasury bond with a face value of $100 and that pays coupons at...

Consider a 2-year Treasury bond with a face value of $100 and that pays coupons at a rate of 6% semiannually. What is the bonds par yield given the following Treasury zero rates? Maturity (years) Zero rates 0.5 3.0% 1.0 3.3% 1.5 3.6% 2.0 3.9% a) 3.89% b)3.99% c)4.19% d)4.39%

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