An investor uses £100,000 to buy 7-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 8%. The bonds currently yield 9% p.a. effective in the market. Calculate the price of a single bond £ Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 5.5% p.a. £ Enter your answer correct to £100
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- An investor uses £100,000 to buy 7-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 2%. The bonds currently yield 3% p.a. effective in the market. Calculate the price of a single bond £ Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 0.5% p.a. £ Enter your answer correct to £100An investor uses £50,000 to buy 10-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 4%. The bonds currently yield 6% p.a. effective in the market. Calculate the price of a single bond £ 数字 Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 1.5% p.a. £ 数字 Enter your answer correct to £100Consider the market rates for the maturities 1, 2, and 3 years respectively in the table below. What is the price of a 3-year bond with annual payments, coupon rate equal to 9.50% and face value equal to $68,000. Answer with two decimal digits accuracy. Example: 74929.05 t 1 2 3 R(0,t) 1.95 2.90 4.40 Blank Excel Worksheet Your Answer: Answer
- An investor uses £150,000 to buy 6-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 8%. The bonds currently yield 10% p.a. effective in the market. Calculate the price of a single bond £ 92.14 Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 6.5% p.a. £ 数字 Enter your answer correct to £100Suppose that you purchase a bond from a company that promises to pay $52.66 in coupon payments for the next 6 years, with a maturity bonus of $152.05 What is the total amount of money that this bond will pay out over its Motime? Round your answer to two (2) decimal places if necessary and do not include a dollar sign Plz do fastConsider bond A with a face value of $500,000 to be repaid at maturity. The maturity of the bond is 2 years. The coupon rate is 8% per annum and coupon payments are made semiannually. The current market rate is 6% p.a. What is the bond’s duration ? Round your final answer to 2 decimal places. E.g. if the final answer is -3.59 years, type -3.59 in the answer box. If the final answer is 3.59 years, type 3.59 in the box .
- Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Required: a. Calculate the forward rate of interest for each year. b. How could you construct a 1-year forward loan beginning in year 3? c. How could you construct a 1-year forward loan beginning in year 4? Required A Price $940.93 Complete this question by entering your answers in the tabs below. 868.39 800.92 735.40 670.48 Required B Maturity (years) 2 3 Calculate the forward rate of interest for each year. Note: Round your answers to 2 decimal places. Required C Forward Rate % % Prov 12 of 12 NextFind the price a purchaser should be willing to pay for the given bond. Assume that the coupon interest is paid twice a year. $19,000 bond with coupon rate 6% that matures in 4 years; current interest rate is 5% The purchaser should be willing to pay $ (Simplify your answer. Round to the nearest cent as needed.)Consider a bond with a current value of $928.01. It is a 10-year, $1,000 bond, coupons paid semi-annually, and has a 7% coupon rate. a. The bond's yield to maturity (YTM) is: b. What will be its value (per $1,000 of face) if its YTM changes to 10%? Question content area bottom Part 1 a. The YTM is enter your response here%. (Round to two decimal places.) b. Value (per $1,000 of face): $enter your response here. (Round to the nearest cent.)
- Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Price $983.78 865.89 797.92 732.00 660.24 Required: a. Calculate the forward rate of interest for each year. b. How could you construct a 1-year forward loan beginning in year 3? c. How could you construct a 1-year forward loan beginning in year 4?A 5-year bond has a face value of £100. The bond pays coupons semi-annually at a rate of 4%. The bond currently yields 5% p.a. effective in the market. Calculate the price of the bond £ 数字 Enter your answer as a decimal correct to 2 decimal placesAssume that you wish to purchase a 30-year bond that has a maturity value of P1,000 and a coupon interest rate of 9.5%, paid semiannually. If you require a 6.75% rate of return on this investment, what is the maximum price that you should be willing to pay for this bond? P1,352 P1,450 P675 P1,111