A 27-year bond, with a price equal to 75% of its face value, offers annual coupons with the coupon rate equal to 217 of the annual effective yield rate. An n-year zero-coupon bond has the same price, face value, and yield rate. Calculate n. A 5 B 7 C 9 D 11 E 13
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- Consider a bond with a face value of $1,000 that sells for an initial price of $700. It will pay no coupons for the first nine years and will then pay 11% coupons for the remaining 29 years. Choose an equation showing the relationship between the price of the bond, the coupon (in dollars), and the yield to maturity. O A. B. O C. O D. 700 = 700 = 700 = 700 = 110 110 9 (1+i)⁹ (1+i)⁹+1 + 110 + i) ⁹ + 1 (1 + 1,000 (1+i) 29-9 1,000 (1 + i) 9 +29 + +...+ 110 (1+i) 9+2 + 110 (1 + i)9+29-1 110 + (1 + i) ⁹ + 110 (1+i)9 +29 9+29-1 + 110 (1 + i)9 +29 + 1,000 (1+i) 9+29An n-year bond with semi-annual coupon payments has the following characteristics: • Par value is $100. • Redemption value is 105% of par. • Semi-annual coupon rate is r. • Semi-annual yield rate is i. • Price of the bond is $64.34. You are also given: (1+ i)-" = 0.3878 Calculate (A) 0.57 (B) 0.87 (C) 1.16 (D) 1.46 (E) 1.75A 12-year bond pays semi – annual coupons at j₂ = 9% and has a yield rate of j2 = 7.2%. If the book value immediately after the 7 th coupon payment is $1107.49, and the book value immediately after the 11 th coupon payment is $1085.83, what is the bond's face value? Answer: $ NOTE: Assume the note is NOT redeemable at par. You have attempted this problem 2 times. Your overall recorded score is 0%. You have 1 attempt remaining.
- A 14-year bond pays semi-annual coupons at j2 = 9% and has a yield rate of j2 = 7.1%. If the book value immediately after the 7th coupon payment is $1038.45, and the book value immediately after the 11th coupon payment is $1034.51, what is the bond's face value? Answer: $ NOTE: Assume the note is NOT redeemable at par.A bond with a face value of 1000 and a redemption value of 1080 has an annual coupon rate of 8% payable semiannually. The bond is bought to yield an annual nominal rate of 10% convertible semiannually. At this yield rate, the present value of the redemption value is 601 on the purchase date. Calculate the purchase price of the bond. A. 911 B. 923 C. 956 D. 974 E. 984Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline
- A 10-year bond pays an annual coupon, its YTM is 10%, and it currently trades at a par value. Which of the following statement is correct? Select one: a. The bond's coupon rate is less than 10%. b. Th bond's coupon rate is equal to 10%. c. If the yield to maturity increases, then the bond's price will increase. d. The bond's current yield is less than 10%.An n-year bond with annual coupons has the following characteristics: • The redemption value at maturity is 2000; . The annual effective yield rate is 8%; • The book value immediately after the sixth coupon is 982.02; and . The book value immediately after the seventh coupon is 1006.58. Calculate n. (a) 22 (b) 23 (c) 24 (d) 25 ܘ e 262. Consider a 15-year semiannual floating rate bond with coupon rate determined with the following formula: Coupon rate = reference rate + 65bps What’s the discount margin of the bond if the bond price is 99.5730 and current reference rate is 9%?
- Suppose a 10-year, $ 1 comma 000 bond with an 8.1% coupon rate and semi - annual coupons is trading for a price of $1 comma 034.81. a. What is the bond's yield to maturity (expressed as an APR with semi - annual compounding)? b. If the bond's yield to maturity changes to 9.7% APR, what will the bond's price be?Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1,037.12. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be?Calculate the value of a R1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent. The required return on similar-risk bonds is 20 percent. What is the correct answer A. R656.77 B. R835.45 C. R845.66 D. R2,201.08