Bond A: 10-year annual bond, price $1010, coupon rate 6% par
$1000 bond B: 10-year semi-annual...
Bond A: 10-year annual bond, price $1010, coupon rate 6% par
$1000 bond B: 10-year semi-annual bond, price $1010, coupon rate
6%, par $1000 Does bond A has a higher cost of debt than bond
B?
A 10-year bond that makes semi–annual coupon payments is
currently selling at par value of $1000. The annual coupon rate is
8% and the initial YTM is 8%. In 6 months the interest rate falls
to 7%. What is your semi-annual holding period return?
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...
Assume that you purchased a 9% coupon, 10-year, $1000 par,
semi-annual payment bond with a
current price of $915. Calculate its:
a) Yield to maturity b) Yield to call if the bond is callable
in 3-years at a 5% premium. [2 marks]
c) Yield to put if the bond is puttable in 3-years at a 5%
discount. [2 marks]
d) Compare YTC and YTP and explain why YTC is generally
greater than YTP?
what is the price of a $1000 par value bond with a coupon rate of
6.9%(annual payments) that matures in 25 years, assuming that the
bond's YTM is 4.57% p.a.?
2. Consider a bond selling at par
($1000) with a coupon rate of 6% and 10 years to maturity.
(Assuming
semi-annual
coupon payments)
(a)
What is the price of this bond if the required yield is 8%?
(b)
What is the price of this bond if the required yield increases from
8% to 9%, and by what percentage
did the price of this bond change?
Twitchy – a kind of junk bond –
carries a 10%...
An investor buys 6% semi-annual coupon paying bond with six
years to maturity and $1000 par value at $906.15.The bond has a YTM
of 8%. For all the calculations ,keep four digits after the decimal
place
b)Calculate the bond's modified duration
c)If the interest rate increases by 20 basis points, what is the
approximate value of the bond by using modified duration?
d)What is the real value of the bond after the change (using the
bond pricing formula )?
Complete the
following table (use $1000 Par value, 10 years, & semi-annual
coupon payments):
Bond
Coupon Rate
Yield to Maturity
Coupon Payment
Bond Value
Discount or Premium
A
5.0%
4.5%
B
6.0%
9.0%
C
4.0%
8.0%
D
9.0%
8.0%
E
12.0%
15.0%
A 10-year corporate bond has a coupon rate of 6% with
semi-annual payments. How much is the par value of this bond?
A 10-year corporate bond has a coupon rate of 6% with annual
payments. How much in interest does the bondholder receive per
year?
A 10-year corporate bond has a coupon rate of 6% with
semi-annual payments. How much in interest does the bondholder
receive per year and per interest payment?
Suppose that you buy a semi-annual coupon bond with coupon rate
of 10%; the market price of $1,120, and the time to maturity of 17
years. Seven years from now, the YTM on your bond is expected to
decline by 2%, and you plan to sell. What is the holding period
yield (HPY) on your investment?
Please give the explanation or formula! Thanks!
Suppose that you buy a semi-annual coupon bond with coupon rate
of 10%; the market price of $1,120, and the time to maturity of 17
years. Seven years from now, the YTM on your bond is expected to
decline by 2%, and you plan to sell. What is the holding period
yield (HPY) on your investment
ABC Corp. just issued some new preferred stock. The issue will
pay a $3 quarterly dividend in perpetuity, beginning 12 years from
now. If...