Please answer all questions Question 1 Assume semi-annual payments. What is the coupon rate for A...

Please answer all questions

Question 1

Assume semi-annual payments. What is the coupon rate for A bond? (Note: Becuase you are given "t" do not multiply it by 2 and remember that price quotes are as a percentage of $1000. This means to get the price, move the decimal over 1 place. For example, a price quote of 99.99 is equal to a price of $999.9.)

Bond	Coupon Rate	Yield	Price Quote	t
A		2.422	101	4.338

Question 2

Assume semi-annual payments. What is the coupon rate for a 26-year bond with a yield of 3.377% and a price of $1,008.8?

Expert Solution

Question 1
Assume semi-annual payments. What is the coupon rate for A bond? (Note: Becuase you are given "t" do not multiply it by 2 and remember that price quotes are as a percentage of $1000. This means to get the price, move the decimal over 1 place. For example, a price quote of 99.99 is equal to a price of $999.9.)
Bond	Coupon Rate
A

Face Value = FV	1000
Rate	2.42%
Present Value = PV	1010
Nper (t)	4.338
Coupon Payment	$26.68
Coupon rate = $26.68/1000	2.6676%

b)
Assume semi-annual payments. What is the coupon rate for a 26-year bond with a yield of 3.377% and a price of $1,008.8?

Face Value = FV	1000
Rate = 3.377%/2	1.69%
Present Value = PV	1008.8
Nper (t)	52
Coupon Payment (semiannual)	$17.14
Annual Coupon Payment	$34.28
Coupon rate = $34.28/1000	3.4281%

ekkarill92 answered 1 year ago

What is the coupon rate for the bond? Assume semi-annual payments. Answer as a percent! Bond...

What is the coupon rate for the bond? Assume semi-annual payments. Answer as a percent! Bond Coupon Rate Yield Price t Apple B ? 5.1% 1012.5 14 7. A bond that yields 6% pays a coupon of $20 semi-annually. Which of the following is most likely the price of the bond? $990 $1000 $1050 Not enough information to determine.

What is the coupon rate of a bond that makes semi-annual coupon payments of $30 each,...

What is the coupon rate of a bond that makes semi-annual coupon payments of $30 each, is selling on the market for $1200, and has a par value of $1000?

A 10-year, 10% coupon bond, semi-annual payments, $1,000 Par, is expected to make all coupon payments...

A 10-year, 10% coupon bond, semi-annual payments, $1,000 Par, is expected to make all coupon payments but to pay only 50% of par value at maturity. What is the expected yield on this bond if the bond is purchased for $975? a. 10.00% b. 6.77% c. None of the options are correct. d. 11.68% e. 6.68%

A bond with face Value =$1,000 with semi-annual payments, a coupon rate of 7%, and has...

A bond with face Value =$1,000 with semi-annual payments, a coupon rate of 7%, and has 8 years to maturity. The market requires a yield of 8% on bonds of this risk. What is this bond’s price?

Consider the following bond issued by Halliburton: coupon rate: 2.067%, with semi-annual coupon payments Face value:...

Consider the following bond issued by Halliburton: coupon rate: 2.067%, with semi-annual coupon payments Face value: $1,000 Maturity date: August 1, 2023 Assume that today is August 2, 2016. Suppose, for the sake of argument, that the annual discount rate is 7.636%, with semi-annual compounding. What is the value of the bond? Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do NOT include a minus sign! Do not type the $ symbol.

Consider the following bond issued by Halliburton: -coupon rate: 3.618%, with semi-annual coupon payments -Face value:...

Consider the following bond issued by Halliburton: -coupon rate: 3.618%, with semi-annual coupon payments -Face value: $1,000 -Maturity date: August 1, 2023 Assume that today is August 2, 2016. Suppose, for the sake of argument, that the annual discount rate is 7.899%, with semi-annual compounding. What is the value of the bond? Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do NOT include a minus sign! Do not type the $ symbol.

Consider the following bond issued by Halliburton: coupon rate: 8.294%, with semi-annual coupon payments Face value:...

Consider the following bond issued by Halliburton: coupon rate: 8.294%, with semi-annual coupon payments Face value: $1,000 Maturity date: August 1, 2023 Assume that today is August 2, 2016. Suppose, for the sake of argument, that the annual discount rate is 2.01%, with semi-annual compounding. What is the value of the bond? Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do NOT include a minus sign! Do not type the $ symbol.

What is the yield to maturing for a 6% coupon bond, with semi-annual payments, with 15...

What is the yield to maturing for a 6% coupon bond, with semi-annual payments, with 15 years remaining to maturity and selling at a price of $912.36?

The Fresno Eastern Company (FEC) bond carries a coupon rate of 6% with semi-annual payments, a...

The Fresno Eastern Company (FEC) bond carries a coupon rate of 6% with semi-annual payments, a $1,000 par, and a maturity of 20 years. The current price of the bonds is $990. The firm’s average tax rate is 21%. What is its after-tax cost of bonds (debts)? Round the answers to 4 decimal places, e.g., 0.3216. Treasury bond currently yields 1.80% and the expected market return is 8%. FEC’s beta is 0.98. Please use the CAPM model to calculate FEC’s...

A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the current...

A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the current value of the bond in the marketplace is $400, then what is the Yield-to-Maturity (YTM)?

Question