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.

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jeff jeffy answered 1 year ago

A 20-year 10% semi-annual-coupon bond has a face (and redemption) value of $1,000. Find the price...

A 20-year 10% semi-annual-coupon bond has a face (and redemption) value of $1,000. Find the price of the bond, assuming a nominal annual interest rate of 12% convertible semiannually [I am not good at this class so a thorough write out on paper would be most beneficial to me] Answer: 849.54 [Provided on the homework, but i don't know how to solve]

Calculate the price of an 8% coupon, $1000 face value, 2-year bond that pays semi-annual coupons...

Calculate the price of an 8% coupon, $1000 face value, 2-year bond that pays semi-annual coupons if the appropriate annual discount rate is 12%. Suppose the annual discount rate on this bond rises to 16% after six months and you sell the bond at the end of the first year. What return did you actually make for the one year that you held this bond? Please show all work and do not use excel or a finance calculator.

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%.

Consider a one-year, 10 percent coupon bond with a face value of $1,000 issued by a...

Consider a one-year, 10 percent coupon bond with a face value of $1,000 issued by a private corporation. The one-year risk-free rate is 10 percent. The corporation has hit on hard times, and the consensus is that there is a 20 percent probability that it will default on its bonds. If an investor were willing to pay at most $775 for the bond, is that investor risk neutral or risk averse?

Consider a(n) Ten-year, 12.5 percent annual coupon bond with a face value of $1,000. The bond...

Consider a(n) Ten-year, 12.5 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 9.5 percent. a. What is the price of the bond? b. If the rate of interest increases 1 percent, what will be the bond’s new price? c. Using your answers to parts (a) and (b), what is the percentage change in the bond’s price as a result of the 1 percent increase in interest rates? (Negative value should...

3. A 20-year maturity coupon bond with face value of $1,000 makes annual coupon payments and...

3. A 20-year maturity coupon bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 20%. When the bond sells at 1500, the YTM is____; When the bond sells at 1000, the YTM is _____; When the bond sells at 800, the YTM is _____.

A T-bond with semi-annual coupons has a coupon rate of 6%, face value of $1,000, and...

A T-bond with semi-annual coupons has a coupon rate of 6%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 4%, what is its Macaulay Duration? Answer in years, rounded to three decimal places. Please show your work. Thank you.

A T-bond with semi-annual coupons has a coupon rate of 3%, face value of $1,000, and...

A T-bond with semi-annual coupons has a coupon rate of 3%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 4%, what is its Macaulay Duration? Answer in years, rounded to three decimal places

A T-bond with semi-annual coupons has a coupon rate of 7%, face value of $1,000, and...

A T-bond with semi-annual coupons has a coupon rate of 7%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 5%, what is its Macaulay Duration? Answer in years, rounded to three decimal places.

A 20-year bond with a face value of $1,000 will mature in 8 years. The bond pays semi-annual coupons at 5% p.a

A 20-year bond with a face value of $1,000 will mature in 8 years. The bond pays semi-annual coupons at 5% p.a. compounding half-yearly. Mia wants to purchase the bond at a price which gives her a yield to maturity of 6% p.a. compounding half-yearly. Calculate the maximum price Mia should pay for the bond. (Round your answer to the nearest cent).

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