Bond A has a $1,000 par value and a 6% coupon rate,
three years remaining to...
Bond A has a $1,000 par value and a 6% coupon rate,
three years remaining to maturity, and an 8% yield to maturity. The
duration of Bond A is _____ years.
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...
A $1,000 par value bond was issued five years ago at a coupon
rate of 6 percent. It currently has 8 years remaining to maturity.
Interest rates on similar debt obligations are now 8 percent. Use
Appendix B and Appendix D for an approximate answer but calculate
your final answer using the formula and financial calculator
methods.
a. Compute the current price of the bond using
an assumption of semiannual payments. (Do not round
intermediate calculations and round your answer...
(Bonds) A bond with a $1,000 par, 6 years to maturity, a coupon
rate of 6%, and annual payments has a yield to maturity of 3.8%.
What will be the percentage change in the bond price if the yield
changes instantaneously to 5.3%? (If your answer is, e.g., -1.123%,
enter it as -1.123. If the sign of the price change is incorrect,
no credit will be given.)
A bond with a $1,000 par, 6 years to maturity, a coupon rate of
4%, and annual payments has a yield to maturity of 3.6%. What will
be the actual percentage change in the bond price if the yield
changes instantaneously to 4.3%? Round to the nearest 0.001%, drop
the % symbol (e.g., if your answer is, e.g., 1.1234%, enter it as
1.123.)
A $1,000 par value bond matures in 8 years. It has a 7% coupon
rate, with semi-annual interest payments. The yield (the rate at
which investors are using to calculate the price of the bond) is
8%. What is the fair market value of the bond?
A company issued $1,000 par value bond at 6% coupon rate. The
bond will mature in 6 years. Current market yield for this bond is
7%. If the coupon is paid semi-annually, what would be the value of
this bond?
Group of answer choices
$951.68
$682.29
$973.36
$952.33
Happy Hour Inc. has $1,000 par value bonds with 6% coupon rate
and 6 years to maturity. If your required rate of return is 8%,
what should be the price of the bond if the bonds pay interest
semi-annually?
Select one:
a. $849.28
b. $1,187.70
c. $1,099.54
d. $906.15
e. $907.54
1)Trees Inc. has outstanding a fixed coupon, $1,000 par value
bond with 10 years remaining until maturity. The bond makes
semi-annual coupon payments and the annual coupon rate is 6
percent. If the annual discount rate is 10%, what will be the price
of this bond?
2) Horizon Co. just paid a dividend of $3.50. The
dividend is paid on annual basis. The required annual
rate of return is 12 percent. If the dividend is
expected to grow at 2 percent every year,...
A $1,000 par value bond has an 8% coupon rate (paid
semiannually). It has 5 years remaining to maturity. If bond’s
current price $1,085.30, what should be the YTM of this bond?
a. 6%
b. 3.69%
c. 7.37%
d. 3%