In: Finance

A bond has a $1,000 par value, 10 years to maturity, and a 8% annual coupon and sells for $980.

- What is its yield to maturity (YTM)? Round your answer to two
decimal places.

% - Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

**INTEREST RATE SENSITIVITY**

An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 10% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 7%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Round your answers to the nearest cent or to two decimal places. Enter all amounts as positive numbers.

Price @ 10% | Price @ 7% | Percentage Change | |

10-year, 10% annual coupon | $ | $ | % |

10-year zero | |||

5-year zero | |||

30-year zero | |||

$100 perpetuity |

bond has a $1,000 par value, 10 years to maturity, and a 8%
annual coupon and sells for $980.
What is its yield to maturity (YTM)? Round your answer to two
decimal places.
b)Assume that the yield to maturity remains constant for the
next 3 years. What will the price be 3 years from today? Do not
round intermediate calculations. Round your answer to the nearest
cent
2)Nesmith Corporation's outstanding bonds have a $1,000 par
value, a 8% semiannual coupon,...

A bond has a $1,000 par value, 12 years to maturity, and an 8%
annual coupon and sells for $980.
a. What is its yield to maturity (YTM)? Round your answer to two
decimal places.
b. Assume that the yield to maturity remains constant for the
next three years. What will the price be 3 years from today? Do not
round intermediate calculations. Round your answer to the nearest
cent.

A bond has a $1,000 par value, 15 years to maturity, and an 8%
annual coupon and sells for $1,080. What is its yield to maturity
(YTM)? Round your answer to two decimal places. % Assume that the
yield to maturity remains constant for the next three years. What
will the price be 3 years from today? Do not round intermediate
calculations. Round your answer to the nearest cent. $

A bond has a $1,000 par value, 12 years to maturity, and a 8%
annual coupon and sells for $980.
What is its yield to maturity (YTM)? Round your answer to two
decimal places.
Assume that the yield to maturity remains constant for the next
5 years. What will the price be 5 years from today? Do not round
intermediate calculations. Round your answer to the nearest
cent.

YIELD TO MATURITY AND FUTURE PRICEA bond has a $1,000 par value, 10 years to maturity, and a 7%
annual coupon and sells for $985.What is its yield to maturity (YTM)? Round your answer to two
decimal places. %Assume that the yield to maturity remains constant for the next
2 years. What will the price be 2 years from today? Do not round
intermediate calculations. Round your answer to the nearest
cent.

A bond has four years to maturity, an 8% annual coupon and a par
value of $100. The bond pays a continuously compounded interest of
5%.
a. What would the actual percentage change in the price of the
bond be if the interest rate goes up from 5% to 6%?
b. What would be the percentage change in the price of the bond
implied by the duration approximation?
c. What would be the percentage change in the price of the...

A bond has four years to maturity, an 8% annual coupon and a par
value of $100. The bond pays a continuously compounded interest of
5%. a. What would the actual percentage change in the price of the
bond be if the interest rate goes up from 5% to 6%? b. What would
be the percentage change in the price of the bond implied by the
duration approximation? c. What would be the percentage change in
the price of the...

A bond has four years to maturity, an 8% annual coupon and a par
value of $100. The bond pays a continuously compounded interest of
5%.
a. What would the actual percentage change in the price of the
bond be if the interest rate goes up from 5% to 6%?
b. What would be the percentage change in the price of the bond
implied by the duration approximation?
c. What would be the percentage change in the price of the...

A $1,000 par value bond with an annual 8% coupon rate will
mature in 10 years. Coupon payments are made semi-annually. What is
the market price of the bond if the required market rate is 6%?
(See Appendix G.)

A bond has a $1,000 par value, 12 years to maturity, and a 9%
annual coupon and sells for $1,110.
What is its yield to maturity (YTM)? Round your answer to two
decimal places.
%
Assume that the yield to maturity remains constant for the next
2 years. What will the price be 2 years from today? Do not round
intermediate calculations. Round your answer to the nearest
cent.
$

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