Given: A $1000 face-value, 20%-coupon bond with 5 years
remaining to maturity, and a yield to maturity of 10% What is the
duration? _____________________. What is the percent volatility?
_________________________.
Find the price of a 10.00% coupon bond with a face value of
$2000, a 12% yield to maturity, and 5 years to maturity. PV =
Price of the bond = $____(Round your response to two decimal
places.)
A corporate bond has 2 years to maturity, a coupon rate of 6%, a
face value of $1,000 and pays coupons semiannually. The market
interest rate for similar bonds is 7.5%.
What is the price of the bond (in $)?
What is the bond's duration in years?
If yields fall by 0.8 percentage points, what is the new
expected bond price based on its duration (in $)?
What is the actual bond price after the change in yields (in
$)?...
If you purchase a $1,000 face value, 4% annual coupon bond with
6 years to maturity when the going interest rate (or yield) is 3%,
then you would pay $1,054.17 for the bond.
a) What is your expected rate of return on the bond assuming
interest rates do not change and you hold the bond to maturity?
b) Suppose that you sell it a year later at which time the going
interest rate has risen to 3.5%. What is your...
Bond
Face Value
Coupon rate
Yield to Maturity
Term to Maturity
Duration
A
$1000
4%
10%
5
4.57
B
$1000
12%
10%
5
4.07
Now suppose the yield to maturity becomes 11%. What are
the % change in prices of bond A and B?
A Treasury bond with 6 months to maturity, with face value of
$100, and a coupon rate of 5% trades for 99:25 and a Treasury bond
with 1 year to maturity with a face value of $100 and a coupon rate
of 5% trades for 98:27. Determine the 6-month and 1-year risk-free
rates of return
please do without excel or a financial calculator and show
formulas used
THE QUESTION IS PRICED LIKE T BILLS BUT ITS SUPPOSED TO BE A...
Bond A is a $1,000, 6% quarterly coupon bond with 5 years to
maturity.
(a) If you bought Bond A today at a yield (APR) of 8%, what is
your purchase price? Is this a
premium or discount bond? Why?
(b) One year later, Bond A's YTM (APR) has gone down to 6% and
you sell it immediately after
receiving the coupon.
(i) What is the current yield?
(ii) What is the capital gains yield?
(iii) What is the one-year...
Bond A is a $1,000, 6% quarterly coupon bond with 5 years to
maturity. (a) If you bought Bond A today at a yield (APR) of 8%,
what is your purchase price? Is this a premium or discount bond?
Why? (b) One year later, Bond A's YTM (APR) has gone down
to 6% and you sell it immediately after receiving the coupon. (i)
What is the current yield? (ii) What is the capital gains
yield? (iii) What is the one-year...
Bond Features
Maturity (years)
5
Face Value =
$1,000
Coupon Rate =
7.00%
Coupon dates (Annual)
Market interest rate today
7.00%
Time to call (years)
3
Price if Called
$1,070.00
Market interest rate in Year 3
5.00%
The above bond is callable in 3 years. When the bond is issued
today, interest rates are 7.00% . In 3 years, the market interest
rate is 5.00% . Should the firm call back the bonds in year 3 and
if so, how...