Question
In: Finance
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of...
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of 6.55% that will last 20 years and has a coupon rate of 4%
If you could use excel and post the formulas that would be great!
Solutions
Expert Solution
Calculate the amortization table as follows:
Formulas:
jeff jeffy answered 1 year agoRelated Solutions
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of...
Create an amortization table for a corporate bond which has a
yield to maturity (YTM) of 3.66% that will last 30 years and has a
coupon rate of 4%.
Thank you! I would appreciate the use of excel as well as shown
formulas! Thank you!
The YTM (yield to maturity) on a one-year zero-coupon bond is 5% and the YTM on...
The YTM (yield to maturity) on a one-year zero-coupon bond is 5%
and the YTM on a two-year zero-coupon bond is 6%. The treasury is
planning to issue a 2-year, annual coupon bond with a coupon rate
of 7% and a face value of $1,000.
a) Compute the value of the two-year coupon bond.
b) Compute the yield to maturity of the two-year coupon
bond.
c) If the expectations hypothesis is correct, what is the market
expectation of the price...
Which of the following is a not correct? a. The yield to maturity (YTM) and the...
Which of the following is a not
correct?
a. The yield to maturity (YTM) and the internal rate of return
(IRR) are the same
b. The YTM and the IRR both suffer from the reinvestment rate
assumption.
c. The YTM suffers from the reinvestment problem when market
interest rates change.
d. The IRR suffers from the reinvestment problem when the
general level of interest rates change.
e. The realized compound yield corrects YTM; the modified
internal rate of return corrects...
Q1. Consider the concepts of yield to maturity (YTM) and realised yield (RY) for a bond....
Q1. Consider the concepts of yield to maturity (YTM) and realised
yield (RY) for a bond. Note that both YTM and RY indicate returns
for an investor upon his/her investment (i.e. purchase) depending
on whether he/she waits until maturity or sells the bond
early.
Suppose
an investor bought a 10-year maturity zero-coupon bond 5 years ago
for $710.
Currently the bond is priced $850 in the market.
The investor is deciding between two choices:
i.
Selling the bond now at...
A bond has $1,000 face value, coupon rate of 3.5%, and yield to maturity (YTM) of...
A bond has $1,000 face value, coupon rate of 3.5%, and yield to
maturity (YTM) of 3.7%. It will mature in 17 years and coupons are
paid annually. What is this bond’s current yield?
A BBB-rated corporate bond has a yield to maturity of 7.1 %. A U.S. treasury security has a yield to maturity of 5.2 %.
A BBB-rated corporate bond has a yield to maturity of 7.1 %. A
U.S. treasury security has a yield to maturity of 5.2 %. These
yields are quoted as APRs with semiannual compounding. Both bonds
pay semi-annual coupons at a rate of 5.8 % and have five years to
maturity. a. What is the price (expressed as a
percentage of the face value) of the treasury bond?b. What is the price (expressed as a
percentage of the face value) of...
A BBB corporate bond portfolio has maturity of Eight years and semiannual. yield to maturity is...
A BBB corporate bond portfolio has maturity of Eight years and
semiannual. yield to maturity is Five percentage, coupon rate is
Eight percentage. The portfolio includes one million bonds.
1.What's the face value of the portfolio.
2.What's the market value of the portfolio.
3.What's the modified and effective duration of the
portfolio.
4.If the T-bond futures contract is $98 and whose duration is
Four. In order to decrease the portfolio duration to 0, how many
contracts needed? Long or short?
The YTM (yield to maturity) on a bond is the interest rate you earn on your...
The YTM (yield to maturity) on a bond is the interest rate you
earn on your investment if interest rates don’t change. If you
actually sell the bond before it matures, your realized
(annualized) return is known as the holding period yield (HPY).
a. Suppose that today you buy a 9 percent annual coupon bond for
$1140. The bond has 10 years to maturity and par value $1000. What
rate of return do you expect to earn on your investment...
The YTM (yield to maturity) on a bond is the interest rate you earn on your...
The YTM (yield to maturity) on a bond is the interest rate you
earn on your investment if interest rates don’t change. If you
actually sell the bond before it matures, your realized
(annualized) return is known as the holding period yield (HPY).
a. Suppose that today you buy a 9 percent annual coupon bond for
$1140. The bond has 10 years to maturity and par value $1000. What
rate of return do you expect to earn on your investment...
You are eyeing an investment in a corporate bond which has a YTM of 14.95%, and...
You are eyeing an investment in a corporate bond which has a YTM
of 14.95%, and a stated rate of interest of 13.04% paid
semi-annually, with a maturity of 20 years, and a PAR value of
$1,000. What is the price of this bond?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain whether acid can catalyze each of the following reactions; i.e., whether the reaction is faster...
- Questions: How does Andrew Carnegie justify the contrast between the wealthy and the working poor? Provide...
- As you go through your daily activities, look for examples of people engaged in conflict. You...
- Summarize key functions of managements in your own words (Planning, Organizing, Leading and Controlling) Please don't...
- For college physics. Please write in paragraph form, typed. Thanks! Respond to the following: In your...
- What is the difference between a bitmap image and a vector image? In terms of processing...
- Albuquerque, Inc., acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition...
ADVERTISEMENT