A fixed coupon bond has 10 years to maturity with payments made
semi-annually. The current price...
A fixed coupon bond has 10 years to maturity with payments made
semi-annually. The current price of the bond is $1100. Compute the
yield-to-maturity for coupon rates of 0% to 10% in 1%
increments.
A $1,000 bond with a coupon rate of 5% paid semi-annually has 10
years to maturity and a yield to maturity of 7%. The price of the
bond is closest to $________. Input your
answer without the $ sign and round your answer to
two decimal places.
A bond price is
$1,135.90. The maturity is 10 years. The coupon rate is 10%.
Payments are semi-annual. Face value is $1,000. Solve for the YTM.
Input your answer as whole percentage with two decimal places
(x.xx), so 9.5% is input as 9.50.
Hint: first solve for
the RATE by adjusting for semiannual again, then multiply this
result by 2 to bring it back to annual. The PMT and FV have the
same sign since they are inflows to the...
An investor purchases a bond in 2010 for $1,152.47 and
coupon payments are made semi-annually. The par
value is $1,000. The annual coupon rate is 10
percent and the annual yield-to-maturity on the
bond is 8 percent. Assuming semi-annual
compounding, what is the maturity (in years)?
Group of answer choices
a. 18 years
b. 15 years
c. 12 years
d. 10 years
Current Price
$980
Maturity
10 years
Coupon rate
5%
Coupon payments
Semi-annual
Face Value
$1,000
a. Calculate the bonds current yield and the bonds equivlant
yield.
b. If the bond had an equivlant yield of 6%, what will the price
of the bond be?
A $5,000 bond with a
coupon rate of 6.4% paid semi-annually has four years to maturity
and a yield to maturity of 6.2%. If interest rates fall and the
yield to maturity decreases by 0.8%, what will happen to the price
of the bond?
a.
Fall by $40.49.
b.
Rise by $142.78.
c.
Rise by $84.46.
d.
Fall by $98.64.
e.
None of the answers
are correct.
A $1,000 bond with a coupon rate of 5% paid semi-annually has 7
years to maturity and a yield to maturity of 9%. The price of the
bond is closest to $________. Input your
answer without the $ sign and round your answer to
two decimal places.
A 5.4% coupon bearing bond pays interest semi-annually and has a
maturity of 12 years. If the current price of the bond is
$1,076.63, what is the yield to maturity of this bond? (Answer to
the nearest hundredth of a percent, e.g. 12.34%)
A $1,000 bond with a coupon rate of 5% paid semi-annually has 8
years to maturity and a yield to maturity of 9%. The price of the
bond is closest to $________. Input your answer without the $ sign
and round your answer to two decimal places.
a) Consider Bond C – a 4% coupon bond that has 10 years to maturity. It makes semi-annual payments and has a YTM of 7%. If interest rates suddenly drop by 2%, what is the percentage change of the bond? What does this problem tell you about the relationship between interest rate and bond price? b) Consider another bond – Bond D, which is a 10% coupon bond. Similar to Bond C, it has 10 years to maturity. It...