What is the quoted price of a 15-year 7.0% bond with semiannual
coupons, a face value of $1,000, and a yield to maturity of 8.0%?
A. $493.40 b. $614.82 c. $913.54 d. $914.41 e. $944.41
What is the clean price (invoice price) for a bond with face
value of $1,000, annual coupon rate of 12%, semiannual payment,
time to maturity of 17 years if the YTM is 14%? 12%? 10%?
Respectively? What is the current yield for each of the three
cases? If the last coupon is paid 60 days ago, what is the dirty
price for each of three cases? (Assume 365 days a year)
1. Calculate the price of a bond with Face value of bond is
$1,000 and:
a. Bond yield of 8.4%, coupon rate of 7% and time to maturity is
5 years. Coupon is paid semi-annually (Bond 1)
b. Bond yield of 7%, coupon rate of 8% and time to maturity is 4
years. Coupon is paid semi-annually
c. Calculate the price of Bond 1 right after the 5th coupon
payment.
2. Arcarde Ltd issues both ordinary shares and preference shares...
What should the current market price be for a bond with a
$1,000 face value, a 10% coupon rate paid annually, a required rate
of return of 12%, and 20 years until maturity?What should the current market price be for a bond with a
$1,000 face value, a 10% coupon rate paid annually, a required rate
of return of 8%, and 20 years until maturity?What generalizations about bond prices can you make given your
answers to #1 and #2?A bond...
7- What is the price of a bond with the following features?
Face Value = $1,000
Coupon Rate = 3% (stated as an ANNUAL rate)
Semiannual coupon payments
Maturity = 6 years
YTM = 5.2% (Stated as an APR)
State your answer to the nearest penny (e.g., 984.25)
1.
What is the price of a bond with the following features?
Face Value = $1,000
Coupon Rate = 7% (stated as an ANNUAL rate)
Semiannual coupon payments
Maturity = 9 years
YTM = 4.05% (Stated as an APR)
State your answer to the nearest penny (e.g., 984.25)
2.
You own a bond with the following features:
Face value of $1000,
Coupon rate of 3% (annual)
11 years to maturity.
The bond is callable after 5 years...
You own a bond that is currently quoted at 97, has a face of
$1,000, a coupon of 6% and matures in 10 years. You are considering
selling the bond.
Should you sell it if your discount rate is 7%? Explain.
Suppose the bond is quoted at 89. Should you sell it?
Explain.
What is the lowest price for which you would sell the bond?
Explain
***Please provide excel formula breakdown if you can please
*****
What should be the price of a 26-year bond per $1,000 face value
with a 3% annual coupon when interest rates for such bonds should
be 4%?
$840.17
$851.02
$862.35
$873.53
$884.78
A zero coupon bond with a face value of $1,000 is issued with a
initial price of $333.33. The bond matures in 23 years. What is the
3-year implicit interest, in dollars, from the 7th to the 10th year
of the bond’s life? The bond’s yield is semiannually
compounded.
Consider a bond with a market price of $1049.73, a face value of
$1,000, maturity of 3 years and a coupon rate of 12%. The YTM on
this bond is 10%. What is the realized annualized rate of return on
this investment if all cash flows are reinvested at 20% per year
for the next three years? Please put your answer on the blank line
on the answer sheet. Round your answer to 4 places to the right of
the...