A 30-year bond is purchased at a discount. The bond pays annual coupons. The amount for...

A 30-year bond is purchased at a discount. The bond pays annual coupons. The amount for accumulation of discount in the 15th coupon is 147. The amount for accumulation of discount in the 19th coupon is 200. Calculate the amount of discount in the purchase price of this bond

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jeff jeffy answered 1 year ago

Consider a 30-year bond that pays semi-annual coupons of $500. The face value of the bond...

Consider a 30-year bond that pays semi-annual coupons of $500. The face value of the bond is $100, 000. If the annual yield rate is 3%, calculate the following: a) the annual coupon rate of the bond b) the price of the bond, one period before the first coupon is paid c) the price of the bond, immediately after the 15th coupon is paid d) the price of the bond, 2 months after the 30th coupon is paid *No financial...

Suppose a ten-year bond $1,000 bond with a 5% coupon rate that pays annual coupons is...

Suppose a ten-year bond $1,000 bond with a 5% coupon rate that pays annual coupons is initially trading at par (at $1,000). After 5 years time, the bond’s yield to maturity falls to 4%. If you sell the bond after 5 years, what price will you receive

A three year bond with face value of $1000 pays annual coupons of 4 percent and...

A three year bond with face value of $1000 pays annual coupons of 4 percent and has a yield- to-maturity of 5 percent. What is the price, duration, and convexity of the bond? Suppose the yield increases to 6 percent. Use the duration rule to estimate the new price. Use duration and convexity to estimate the new price. Use the bond price equation to compute the exact new price.

A 3-year $100 par value bond pays 9% annual coupons. The spotrate of year 1...

A 3-year $100 par value bond pays 9% annual coupons. The spot rate of year 1 is 6%, the 2- year spot rate is 12%, and the 3-year spot rate is 13%.a) Determine the price of the bondb) Determine the yield to maturity of the bondA 2-year $100 par value bond pays 5% semi-annual coupons. The 6-month spot rate is 2%, the 1-year spot rate is 2.5%, the 18-month spot rate is 3% and the 2-year spot rate is 4%.c)...

A 30-year bond with coupon rate of 11% pays coupons semiannuallyand sells for $1,111.11. Suppose...

A 30-year bond with coupon rate of 11% pays coupons semiannually and sells for $1,111.11. Suppose that five years later the bond’s YTM rose by 1%. What return has the bondholder earned over the past five years?

An 8%, 8-year bond pays annual coupons and has 5 years to maturity. If the market...

An 8%, 8-year bond pays annual coupons and has 5 years to maturity. If the market interest rate is 9%, calculate the value of the bond. Show the (condensed) time line and key steps of two methods. For the NS method, show the abbreviated equation/expression.

A German bond that pays annual coupons of 4.5%, has a par value of €1,000, and...

A German bond that pays annual coupons of 4.5%, has a par value of €1,000, and a YTM of 3.9%. Assuming there are 19 years until maturity, what is the current price of this bond?

A 20-year bond with a face value of $1,000 will mature in 8 years. The bond pays semi-annual coupons at 5% p.a

A 20-year bond with a face value of $1,000 will mature in 8 years. The bond pays semi-annual coupons at 5% p.a. compounding half-yearly. Mia wants to purchase the bond at a price which gives her a yield to maturity of 6% p.a. compounding half-yearly. Calculate the maximum price Mia should pay for the bond. (Round your answer to the nearest cent).

A year ago, you purchased a 5-year bond, paying fixed annual coupons at a rate 5%pa....

A year ago, you purchased a 5-year bond, paying fixed annual coupons at a rate 5%pa. At the time you purchased the bond, the yield to maturity was 5%pa. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 4%, your annual total rate of return on holding the bond for that year would have been approximately ________. Group of answer choices 8.1% 4.8% 8.6% 7.6% 9.5% PreviousNext

A $1000 bond, redeemable at par, with annual coupons at 10% is purchased for $1050. If...

A $1000 bond, redeemable at par, with annual coupons at 10% is purchased for $1050. If the write-down in the book value is $20 at the end of the 1st year, what is the write-down at the end of the 4th year

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