What is the value of a 9-year, 7.2% coupon, $1,000 face value
bond that pays quarterly...
What is the value of a 9-year, 7.2% coupon, $1,000 face value
bond that pays quarterly coupons, if its yield to maturity is 3.9%?
Round to the nearest cent.
A 5-year bond with a face value of $1,000 pays a coupon of 4%
per year (2% of face value every six months). The reported yield to
maturity is 3% per year (a six-month discount rate of 3/2 =1.5%).
What is the present value of the bond?
A 9 percent, 7-year, semiannual coupon bond has a face value of
$1,000. What is the current price of this bond if the market rate
of return is 8.8 percent?
$1,010.29
$1,011.49
$1,112.32
$1,111.24
A 29-year U.S. Treasury bond with a face value of $1,000 pays a
coupon of 5.25% (2.625% of face value every six months). The
reported yield to maturity is 4.8% (a six-month discount rate of
4.8/2 = 2.4%). (Do not round intermediate calculations. Round your
answers to 2 decimal places.)
a. What is the present value of the bond?
b. If the yield to maturity changes to 1%, what will be the
present value?
c. If the yield to maturity...
Suppose a twenty-year bond with a $1,000 face value that pays an
annual coupon is priced at 1071.06 and has a yield to maturity of
7%. What is the coupon rate of the bond?
A 16-year U.S. Treasury bond with a face value of $1,000 pays a
coupon of 5.75%. Coupon is to be paid semi-annually. The reported
annual yield to maturity is 5.4%. Solve the following questions: a)
What is the present value of the bond? b) What is the duration of
the bond? c) If the yield to maturity changes to 1%, what will be
the present value? d) If the yield to maturity changes to 8%, what
will be the present...
A
9-year
bond pays interest of
$26.90
semiannually, has a face value of
$1,000,
and is selling for
$ 795.07.
What are its annual coupon rate and yield
to maturity
A twelve-year corporate bond has a coupon rate of 9%, a face
value of $1,000, and a yield to maturity of 11%. Assume annual
interest payments. (i) (2 pts) What is the current price? (ii) (3
pts) What is the duration (Macaulay’s)? (iii) (2 pts) Compare this
bond to a eight-year zero coupon bond. Which has more interest-rate
risk (which bond price changes more given a 1 percentage point
change in the interest rate)? (iv) (2 pts) Using duration, what...
Consider a 10 year bond with face value $1,000 that pays a 6.8%
coupon semi-annually and has a yield-to-maturity of 8.4%. What is
the approximate percentage change in the price of bond if interest
rates in the economy are expected to decrease by 0.60% per year?
Submit your answer as a percentage and round to two decimal places.
(Hint: What is the expected price of the bond before and after the
change in interest rates?)
To answer the question:
(1)...
A bond issued with a face value of $1,000 pays a 3%
coupon rate and matures in seven years. If an investor wants a
yield of 4%, what is the investor willing to pay for the
bond?