What is the price of a 6-year, 8.5% coupon rate, $1,000 face value bond that pays...

What is the price of a 6-year, 8.5% coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds 7.3%?

Expert Solution

jeff jeffy answered 2 years ago

A 12-year semiannual bond with a coupon rate of 6% has a face value of $1,000 and a YTM of 7%. The price of the bond is

Question 1 A 12-year semiannual bond with a coupon rate of 6% has a face value of $1,000 and a YTM of 7%. The price of the bond isQuestion 1 options:912.85914.25916.36919.71920.57Question 2 A 4-year discount bond with a face value of $1,000 sells at $915. The YTM of the bond isQuestion 2 options:2.24%2.52%2.83%3.21%3.48%Question 3 A 7-year semiannual bond with a face value of $1,000 and a coupon rate of 8% sells at $974. The YTM of the bond isQuestion 3 options:4.3%5.5%6.5%7.2%8.5%Question 4 Consider a...

What is the value of a 9-year, 7.2% coupon, $1,000 face value bond that pays quarterly...

What is the value of a 9-year, 7.2% coupon, $1,000 face value bond that pays quarterly coupons, if its yield to maturity is 3.9%? Round to the nearest cent.

A 30-year corporate bond has a face value of $1,000 and a coupon rate of 6%...

A 30-year corporate bond has a face value of $1,000 and a coupon rate of 6% paid annually. At the end of year 12 the Yield to Maturity is 8%. a. How much money will the holder of the bond receive at the end of year 30? b. What is the bond’s price at the end of year 12? c. What will the bond’s interest payment be at the end of year 12? d. If the Yield to Maturity later...

A bond issued with a face value of $1,000 pays a 3% coupon rate and matures...

A bond issued with a face value of $1,000 pays a 3% coupon rate and matures in seven years. If an investor wants a yield of 4%, what is the investor willing to pay for the bond?

What is the price of a 3-year bond with a coupon rate of 6% and face...

What is the price of a 3-year bond with a coupon rate of 6% and face value of $1,000? Assume the bond is trading at 6% yield, and that coupons are paid semi-annually. Assume semi-annual compounding.

A 5-year bond with a face value of $1,000 pays a coupon of 4% per year...

A 5-year bond with a face value of $1,000 pays a coupon of 4% per year (2% of face value every six months). The reported yield to maturity is 3% per year (a six-month discount rate of 3/2 =1.5%). What is the present value of the bond?

What is the price of a 10-year, $1,000 bond with a 6% coupon rate and semiannual...

What is the price of a 10-year, $1,000 bond with a 6% coupon rate and semiannual coupons if the bond’s yield to maturity is 9% (APR with semiannual compounding)? $864.10 $1,038.07 $804.88 $1,077.95 Consider a project with the following cash flows: Year 0 1 2 3 4 Cash Flow -10,000 4,000 4,000 4,000 4,000 What is the internal rate of return (IRR) of the above project? 23.23% 22.05% 21.86% 20.82% Security: AAA AA A BBB BB Yield (%): 5.0 5.5 6.0 6.4 8.0 A mining company needs to raise $100 million in order to begin open pit mining...

A bond has a face value of $1,000, coupon rate of 8%, and matures in 6...

A bond has a face value of $1,000, coupon rate of 8%, and matures in 6 years. Imagine that the market interest rate is 6%, but immediately after you buy the bond the rate drops to 5%. What is the immediate effect on the bond price? Hint: the effect is the price of the bond after the change minus the price of the bond before the change.

What is the value of a 28-year, 4.3% coupon rate, $1,000 face value bond with annual...

What is the value of a 28-year, 4.3% coupon rate, $1,000 face value bond with annual coupon payments, if similar bonds (same maturity, same risk profile) are trading at a yield to maturity of 7.6%? Round to the nearest cent.

2(A) A 10-year bond has a face value of EUR1000 pays a 6% annual coupon rate....

2(A) A 10-year bond has a face value of EUR1000 pays a 6% annual coupon rate. The required market yield is 6.5%. What is its convexity? 2(B) A 10-year bond has a face value of EUR1000 pays a 6% annual coupon rate and is traded at 102%. The market yield is 5.73%. What are its duration and convexity? If the required yield changes by +200 basis points, compare the actual bond price change with using duration and convexity rule to...

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