3. (8 marks) Consider a 6-year, $1,000 par bond that pays semi-annual coupon. Its yield to...

3. Consider a 6-year, $1,000 par bond that pays semi-annual coupon. Its yield to maturity is 7% and is selling for $1,095.452? Find the coupon rate of this bond.

Expert Solution

jeff jeffy answered 2 years ago

An 8-year $1,000 par Treasury bond pays a 7 percent semi-annual coupon. The bond has a...

An 8-year $1,000 par Treasury bond pays a 7 percent semi-annual coupon. The bond has a conversion factor of 1.025. The risk-free is 6 percent and the annual yield on the bond is 7 percent. The bond just made a coupon payment. The price of a 15-month futures contract is closest to: A. $1 049.32 B. $979.00 C. $983.32

21. If a 3-year, semi-annual bond ($1,000 par value) has an annual coupon rate of 8...

21. If a 3-year, semi-annual bond ($1,000 par value) has an annual coupon rate of 8 percent, and an annual yield to maturity of 6 percent, then calculate Macaulay's duration of the bond using the table format demonstrated in the video (not the equation)

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon...

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon payments made on July 1 and January 1. If the bond changes hands on November 1, which of the following is true with respect to accrued interest? The buyer will pay the seller $20 of accrued interest The seller will pay the buyer $20 of accrued interest The buyer will pay the seller $10 of accrued interest The seller will pay the buyer $10...

Consider a 11-year, corporate bond with face value $1,000 that pays semi-annual coupon. With the nominal...

Consider a 11-year, corporate bond with face value $1,000 that pays semi-annual coupon. With the nominal yield-to-maturity equal to 10%, the bond is selling at $802.5550. Find the coupon rate for this bond. Assume that the market is in equilibrium so that the fair value of the bond is equal to the market price of the bond.

A 3-year, semi-annual bond has an 8% coupon rate and a face value of $1,000. If...

A 3-year, semi-annual bond has an 8% coupon rate and a face value of $1,000. If the yield to maturity on the bond is 10%, what is the price of the bond?

Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond...

Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond if the bond sells for $1,218 currently? We assume that interest is paid on this bond annually. 2.90% 5.79% 6.64% 6.86% calculate the bond’s current yield. 6.20% 6.57% 6.80% 7.18% calculate the bond’s capital gain yield. -0.78% 0.78% 6.22% 6.57%

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield...

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield to maturity of 7.5 percent, and 10 years until maturity. Assuming semi-annual coupon payments: d. If the bond were selling for $929, what would the effective yield-to-maturity if you reinvest coupon payments at 9 percent? ***please show the work or what is entered in calculator***

1.What is the yield on a 11-year bond that pays a semi-annual coupon of $18 and...

1.What is the yield on a 11-year bond that pays a semi-annual coupon of $18 and sells for $1000. Answer as a percent. 2.You are looking at a 7-year zero-coupon bond that has a yield to maturity of 2.3% . What is the value of the bond? Assume semi-annual compounding. 3.What is the coupon rate for the bond? Assume semi-annual payments. Answer as a percent! Bond Coupon Rate Yield Price t Apple B ? 2.3% $990.90 2 4. A bond...

You purchase a 20-year, $1,000 par value 6% coupon bond with annual payments with a yield...

You purchase a 20-year, $1,000 par value 6% coupon bond with annual payments with a yield to maturity of 8%. 1 year later after receiving a coupon payment, the yield to maturity has decreased to 7% and you sell the bond. What is your total rate of return on the investment over the year?

A bond that pays annual coupons has a par value of $1,000, an 8% coupon rate,...

A bond that pays annual coupons has a par value of $1,000, an 8% coupon rate, 3 years left to maturity, and is currently priced at a YTM of 6.0%. (a) Calculate duration and modified duration for the bond. (b) If the YTM on the bond changes from its current 6.0% up to 8.0%, what price change (% and $) and new price ($) is predicted by the modified duration calculated in part a.? (c) What is the size and...

Question