A bond with a par value of $1,000 has a 6% coupon rate with
semi-annual coupon payments made on July 1 and January 1. If the
bond changes hands on November 1, which of the following is true
with respect to accrued interest?
The buyer will pay the seller $20 of accrued interest
The seller will pay the buyer $20 of accrued interest
The buyer will pay the seller $10 of accrued interest
The seller will pay the buyer $10...
21. If a 3-year, semi-annual bond ($1,000 par
value) has an annual coupon rate of 8 percent, and
an annual yield to maturity of 6 percent, then
calculate Macaulay's duration of the bond using
the table format demonstrated in the video
(not the equation)
Q3) What is the price of a $1,000 par value, semi-annual coupon
bond with 18 years to maturity, a coupon rate of 08.60% and a
yield-to-maturity of 05.10%? (1 point) Q4) What is the price of a
$1,000 par value, 18 year, annual coupon bond with a 05.80% coupon
rate and a yield to maturity of 04.90%? (1 point) Q5) You bought a
20-year, 07.30% semi-annual coupon bond today and the current
market rate of return is 06.30%. The bond...
i) You just purchased a 10-year semi-annual coupon bond with a
par value of $1,000 and a coupon rate of 8%. The nominal yield to
maturity is 7% per annum. Calculate the market price of the
bond.
ii)Three years later, immediately after receiving the sixth
coupon payment, you sell the bond to your best friend. Your best
friend’s nominal yield to maturity is 9% per annum. Calculate the
price paid by your best friend.
8. What is the YTM of a $1,000 par value bond with a 10% coupon
rate, semi-annual coupon payments, and 9 years to maturity if the
bond currently sells for $900? Round to the nearest hundredth
percent. Do not include a percent sign in your answer. (i.e. If
your answer is 4.32%, then type 4.32 without a % sign)
9. Ford Motors’ bond is currently traded at the value of
$1,208.70 and a yield of 4.22%. The current rating of...
A 15-year, $1,000 par bond with a 6.5% semi-annual coupon
currently trades at a price of $1,215. If the yield to maturity of
the bond remains constant, what will be its price in six years?
A. $1,268.00
B. $1,145.73
C. $1,080.16
D. $846.71
E. $1,103.49
An 8-year $1,000 par Treasury bond pays a 7 percent semi-annual
coupon. The bond has a conversion factor of 1.025. The risk-free is
6 percent and the annual yield on the bond is 7 percent. The bond
just made a coupon payment. The price of a 15-month futures
contract is closest to:
A. $1 049.32
B. $979.00
C. $983.32
What is the yield to maturity on a 10-year, 9% annual coupon,
$1,000 par value bond that sells for $887.00? That sells for
$1,134.20? What does the fact that a bond sells at a discount or at
a premium tell you about the relationship between and the bond’s
coupon rate?
What are the total return, the current yield, and the capital
gains yield for the discount bond? (Assume the bond is held to
maturity and the company does not default...