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.
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 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 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 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 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 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%
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 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?
Consider a $1,000 par value bond with a 7% annual coupon. The
bond pays interest annually. There are 20 years remaining until
maturity. You have expectations that in 5 years the YTM on a
15-year bond with similar risk will be 7.5%. You plan to purchase
the bond now and hold it for 5 years. Your required return on this
bond is 10%. How much would you be willing to pay for this bond
today? Select one:
a. $820
b....
Consider a five-year, 8 percent annual coupon bond selling at
par of $1,000.
a. What is the duration of this bond?
b. If interest rates increase by 20 basis points, what is the
approximate change in the market price using the duration
approximation?