Question
In: Finance
Bond prices. Price the bonds from the following table with semiannual coupon LOADING... payments. Par Value...
Bond prices. Price the bonds from the following table with semiannual coupon
LOADING...
payments.
|
Par Value |
Coupon Rate |
Years to Maturity |
Yield to Maturity |
Price |
|||
|
$5 ,000.00 |
10% |
20 |
11% |
? |
|||
|
$1 ,000.00 |
9% |
20 |
6% |
? |
|||
|
$1 ,000.00 |
6% |
15 |
7% |
? |
|||
|
$5 ,000.00 |
5% |
20 |
9% |
? |
|||
Solutions
Expert Solution
| Bonds | 1 | 2 | 3 | 4 | ||||
| rate | 5.5% | 3.0% | 3.5% | 4.5% | ||||
| nper | 40 | 40 | 30 | 40 | ||||
| pmt | $ 250.00 | $ 45.00 | $ 30.00 | $ 125.00 | ||||
| fv | $ 5,000.00 | $ 1,000.00 | $ 1,000.00 | $ 5,000.00 | ||||
| Price of bond | = | =-pv(rate,nper,pmt,fv) | ||||||
| = | $ 4,598.85 | $ 1,346.72 | $ 908.04 | $ 3,159.84 | ||||
| Where, | ||||||||
| rate | Semi annual required return | |||||||
| nper | semi annual number of period | |||||||
| pmt | semi annual coupon payment | |||||||
| fv | Face Value | |||||||
| Working: | ||||||||
| Par Value | a | $ 5,000 | $ 1,000 | $ 1,000 | $ 5,000 | |||
| Semi annual coupon rate | b | 5% | 4.50% | 3% | 2.50% | |||
| Semi annual coupon | c=a*b | $ 250 | $ 45 | $ 30 | $ 125 | |||
jeff jeffy answered 1 year agoRelated Solutions
bond prices. price the bonds from the following table with semiannually coupon payments. par value. coupon...
bond prices. price the bonds from the following table
with semiannually coupon payments.
par value. coupon rate. YearTM. YieldTM.
price
$5,000.00.
8%
5.
8% ?
$1,000.00.
5%
10.
11% ?
$1,000.00.
11%
20.
9% ?
$5,000.00.
6%
5.
7% ?
Bond prices. Price the bonds from the following table with annual coupon payments. Par Value Coupon...
Bond prices. Price the bonds from the following table with
annual coupon payments.
Par Value
Coupon Rate
Years to
Maturity
Yield to
Maturity
Price
$1,000.00
6%
25
10%
?
$1,000.00
8%
30
12%
?
$5,000.00
12%
15
11%
?
$1,000.00
7%
5
6%
?
a. Find the price for the bond in the following table: (Round
to the nearest cent.)
Par Value
Coupon Rate
Years to
Maturity
Yield to
Maturity
Price
$1,000.00
6%
25
10%
$_______
b. Find the price...
A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a...
A 6 percent coupon bond that has a $1,000 par value, semiannual
coupon payments and a yield to maturity of 5.25 percent. The bond
matures in 9 years.
What is the price of the bond, What will happen to the price if
market interest rates rise to 6.45 percent, what can you say about
the relationship between the price of a bond and the market
interest rate?
i) A bond with a par value of $1000 makes semiannual coupon payments of $40. What...
i) A bond with a par value of $1000 makes semiannual coupon
payments of $40. What is its coupon rate?
ii) A semiannual coupon bond with face value of $1000 has a
coupon rate of 8% and matures in 11 years. The market-determined
discount rate on this bond is 13%. What is the price of the bond?
Round to the penny.
iii) A semiannual coupon bond with coupon rate of 4.5% and face
value of $1000 trades at $1200. It...
You bought a bond today that has a $1,000 par value and makes semiannual coupon payments....
You bought a bond today that has a $1,000 par value and makes
semiannual coupon payments. The bond has a coupon rate of 8%, a YTM
of 6%, and has 15 years to maturity.
What is the price of this bond today?
Six months later, the YTM goes up to 7%. If you sell the bond in 6
months after receiving a coupon payment, what do you expect the
selling price of this bond?
What will be your total dollar...
The following table gives government bond prices (all have par value = $1000 and annual coupon...
The following table gives government bond prices (all have par
value = $1000 and annual coupon payment):
Bond
Maturity
(Years)
Coupon
(%)
Yield to Maturity
A
1
0.0
0.02
B
2
0.0
0.04
C
3
7.0
0.05
D
4
9.0
0.055
E
5
9.0
0.07
F
3
0.0
0.0512
G
4
0.0
0.0568
H
5
0.0
0.0624
a. Which
coupon-paying bond (bonds) is (are) mispriced by more than $1?
Why?
b. Consider Bond C and Bond F, both
with 3...
Complete the following table (use $1000 Par value, 10 years, & semi-annual coupon payments): Bond Coupon...
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 15-year, $1,000 par value, 10% semiannual coupon bond has a price of $1,190 and it...
A 15-year, $1,000 par value, 10% semiannual coupon bond has a
price of $1,190 and it is callable in 5 years at a call price of
$1,050. What is the bond’s nominal yield to call (YTC)?
a.
6.37%
b.
6.73%
c.
7.60%
d.
7.83%
e.
3.18%
A 15-year, $1,000 par value, 10% semiannual coupon bond has a price of $1,190 and it...
A 15-year, $1,000 par value, 10% semiannual coupon bond has a
price of $1,190 and it is callable in 5 years at a call price of
$1,050. What is the bond’s nominal yield to call (YTC)?
a.
6.37%
b.
6.73%
c.
7.60%
d.
7.83%
e.
3.18%
A bond issued by Vodafone has a coupon rate of 6.15% with semiannual payments, a par...
A bond issued by Vodafone has a coupon rate of 6.15% with
semiannual payments, a par value of $1,000, and remaining maturity
of exactly 25 years. The bond is currently trading at a price in
the market that reflects a yield to maturity for the bond of 3.86%.
What is the current value of the bond?
) A zero-coupon bond issued by a company has a remaining
maturity of exactly 15 years and a par value of $1,000. The bond...
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