What is the price of a 12-year bond paying 8.2% annual coupons with a face (par)...

What is the price of a 12-year bond paying 8.2% annual coupons with a face (par) value of $1,000 if the market rates for these bonds are 5.7%? Answer to the nearest cent, xxx.xx

What is the price of a zero-coupon 6-year maturity bond per face (par) value of $1,000 if the annual market rates for these bonds are 12.1%? Answer to the nearest cent, xxx.xx

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1.What is the price of a 20-year bond paying 7 % annual coupons with a face...

1.What is the price of a 20-year bond paying 7 % annual coupons with a face (par) value of $1,000 if an 20-year bond making semi-annual payments and paying 7 % sells at par? Answer to the nearest cent, xxx.xx and enter without the dollar sign. 2.Suppose the interest rate on a 1-year T-bond is 6.3 % and that on a 3 year T-bond is 7.3 %. Assuming the pure expectations theory is correct, what is the market's forecast for...

q1. What is the price of a 14-year bond paying 9.1% annual coupons with a face...

q1. What is the price of a 14-year bond paying 9.1% annual coupons with a face (par) value of $1,000 if the market rates for these bonds are 5.5%? Answer to the nearest cent, xxx.xx, and enter without the dollar sign. q2. You are borrowing $200,000 for an amortized loan with terms that include annual payments,6 year loan, and interest rate of 7.2 per year. How much of the first year's payment would be applied toward reducing the principal?

a) What is the price of a 10-year bond paying semi-annual coupons at the rate of...

a) What is the price of a 10-year bond paying semi-annual coupons at the rate of 5% compounded semi- annually, if it is priced to yield 4.8% compounded semi-annually? b) Is the bond trading at a premium or at a discount? c) What would be the price quote for this bond? d) What is the Macaulay duration of this bond in years, rounded to 2 decimal places? (Hint: create a table in excel) e) What is the price of a...

The current market price of a two-year 25% coupon bond, paying annual coupons with $100 face...

The current market price of a two-year 25% coupon bond, paying annual coupons with $100 face value is trading at $121.97. The current market price of a one year zero coupon bond with $100 face value is $89.28. What must the price of a two-year zero coupon bond with a $100 face value be in order to avoid arbitrage? (6 points) (Hint: Let P be the value of a two year zero coupon bond with $100 face value if needed.)...

Using excel, find the price of a 20-year $2000 par bond with 6% annual coupons for...

Using excel, find the price of a 20-year $2000 par bond with 6% annual coupons for yield rates starting at 0 and increasing by .001 (.1%) until .15 (15%). Graph the bond prices (price on the y-axis and yield on the x-axis). Answer the following questions: Describe your graph. What happens to bond prices when rates increase? At what rate does the bond sell for par? (When is the price $2000)? At what rates is the bond selling for a...

Find the price of a bond with face value of $100 and $10 annual coupons that...

Find the price of a bond with face value of $100 and $10 annual coupons that matures in 5 years, given that the continous compounding rate is 6%.

Cain buys a 3-year $1000 10% bond with annual coupons, redeemable at par. The price assumes...

Cain buys a 3-year $1000 10% bond with annual coupons, redeemable at par. The price assumes an annual effective yield rate of 8%. First, find the price of this bond. Every time Belial receives a payment, he deposits the money into a savings account, with an annual effective interest rate of i. At the end of three years, he puts the last payment he receives from the bond into the savings account and observes that overall, his yield rate was...

A twelve year 5,000 par valued floating rate bond with annual coupons has a price P...

A twelve year 5,000 par valued floating rate bond with annual coupons has a price P such that the investor’s APY is 8%. The annual coupon rate for the n-th year is given by the function .07+.0035*n a. Find the price P b. Find the amount of Principal P6 in the sixth coupon payment c. Find the interest i5 in the fifth coupon payment d. Find the amount of the discount or premium for this bond. Please show all work...

Calculate the price of a 10 percent coupon (annual coupons, $1,000 face value 20-year bond if...

Calculate the price of a 10 percent coupon (annual coupons, $1,000 face value 20-year bond if the appropriate discount rate is 3 percent. Show your return if you hold this bond for three years and discount rates don’t change. Calculate the price of a zero coupon, $1,000 face value, 5-year bond if the appropriate annual discount rate is 12 percent. Calculate your total return if you hold this bond for three years and the discount rate does not change.

Hafu buys a 10-year bond with annual coupons. The par value of this bond is 10000...

Hafu buys a 10-year bond with annual coupons. The par value of this bond is 10000 as is the redemption value, and it has an annual coupon rate of 6%. The price Hafu pays for the bond gives it an annual effective yield of 12%. Hafu has set up her investments so that the coupons are immediately deposited in a savings account with an annual effective rate of 9%. What is the annual effective yield (IRR) of Hafu’s overall investment...

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