Bond Value Coupon rate Interest Due Maturity Require Rate of Return Offered Price 20,000 11% Every 3 months 5yrs 12% 88 1/4 Required: Calculate the Exact and Approximate YTM.
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|
Bond Value |
Coupon rate |
Interest Due |
Maturity |
Require |
Offered Price |
|
20,000 |
11% |
Every 3 months |
5yrs |
12% |
88 1/4 |
Required: Calculate the Exact and Approximate YTM.
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- Assume you have the following asset and liability in your Balance Sheet:Asset - Bond AModified Duration = 2.6 yearsValue= RM1.5 millionAAFARLiability - Bond BModified Duration = 3.1 yearsValue= RM1.0 milliona. Calculate the duration gap. b. What is the expected change in Net Worth if interest increases by 1%?attachment. calculation step by stepAssume you have the following asset and liability in your balance sheet Asset - Bond AModified Duration = 1.5 yearsValue = RM1 million Liability - Bond BModified Duration 2.6 yearsValue = RM2 million a. Calculate the duration gaps?b. What is the expected change in Net worth if interest increases by 1%?c. What should or could you to achieve immunised balance sheet?Calculating Actual YTM Using Linear Approximation Face Value per Bond (par value) Closing Price of bond on 12/26/2021 Coupon Rate Frequency of Coupon Payments Next Coupon Payment Date Maturity Date Current Date Days Remaining to Maturtity Years Remaining to Maturity Number of Cashflow per year Number of Casflows till Maturity Value of Semi-Annual Coupons Payable £ Actual YTM Market Value of the Bond £ 1,000 138.30 5.875% 6 months 6/13/2022 12/11/2031 12/26/2021 3637 9.96 19.93 29.38 Calculate the Actual YTM and Market value of the bond Using Linear Approximation. You must clearly explain the steps involved and present the linear equation. Assume that the market price of the bond is the clean price.
- Abend las a duration of 6.222 and the current yield-to inaturity i5.39%if the cument bonds peice is51,150.17what is predicted to be the bond new price if interest rates suddenly iomp upwards by 0.57e? State your anwer as a dollar amount with two decimal placesBond Value Coupon rate Interest Due Maturity Require Rate of Return Offered Price 10,000 8% Semi-Annual 10 yrs 10% 98 3/4 Required: Calculate the Exact and Approximate YTM.The real rate of interest is currently at 3%; the inflation expectation and risk premiums for a number of securities folLOW The security c has rsk premium at 2% and premium at 8% Find risk free rate of security c a. 10% b. 6% c. 11%
- This first table describes prevailing market interest rates. Market Data Yield 0.05 Required: Using the yield above and the information contained in the table below, please calculate the price and duration of the bond as well as all necessary steps. (Use cells A5 to B5 from the given information to complete this question.) Time Until Payment Payment Discounted Payment Weight Time × Weight 1.00 $30.00 2.00 $30.00 3.00 $30.00 4.00 $1,030.00 Price: DurationSuppose a 10% 3years bond with a FV of $1000 Spot rates r1= 10%, r2= 12%, r3=13%. Calculate the forward rate required to calculate the bond price using the forward rate 1f2following questions: a. What is the mid-rate for each maturity? b. What is the annual forward premium for all maturities? (Click on the icon to import the table into a spreadsheet.) Period spot 1 month 2 months 3 months 6 months 12 months 24 months Period Bid Rate Spot 1.3267 1.3265 1.3263 1.3259 1.3250 1.3228 1.3179 a. What is the mid-rate for each maturity? Calculate the mid-rate for each maturity below: (Round to five decimal places.) Days Forward Ask Rate 0 1.3268 1.3266 1.3264 1.3262 1.3252 1.3233 1.3207 Bid Rate US$/€ 1.3267 Ask Rate US$/€ 1.3268 Mid-rate US$/€
- K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 0 2 5 Period $19.53 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Cash Flows View an example Get more help. ★ a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) A 6 1 MacBook Pro & 7 $19.53 * 8 9 C 59 $19.53 60 $19.53+$1,000 Clear all BUB 0 {Assume that the real risk free rate is 2% and the average expected inflation rate is 3% for each future year. The default risk premium and the liquidity premium for bond x are each 1% and the applicable Maturity Risk premium is 2% what is bond x’s interest rate. Round to 2 decimal placesGiven the following data: Period Years to maturity Yield Par Value (K) Bond Price (K) 1 0.5 8.0% 1,000 1,000 2 1 8.05% 1,000 1,000 3 1.5 8.1% 1,000 1,000 4 2 8.12% 1,000 1,000 5 2.5 8.22% 1,000 1,000 Determine the spot rates for 6-months, 1 year, 1.5 years, 2 years and 2.5 years.