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Q: bond
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given the price of a 2-year coupon, bond is $875 its coupon rate is 10% and its face value is 1000 the YTM on this bond is?
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?A 10-year bond has a coupon of 3% and a DV01 of 8. What is the present value of just the principal?Suppose a 9-year bond has a face value of $1,000 and has a semi-annual YTM of 0.085. It pays semi-annual coupons of 8%. What is the bond’s price?
- Suppose an 6% semi-annual coupon, 20-year bond is selling for R1,201.74. What is the Bond Equivalent Yield?If you have a coupon bond, its face value is $1,000 and the coupon rate is 4%. Complete the following table, then calculate the rate of return for the bond. If you know that it was purchased at the nominal value, comment on the results. due date return at maturity the price 2 0.02 3 0.04 5 0.06 Present Value Annuity value % n value % n 0.961 0.02 2 1.97 0.02 2 0.925 0.04 2 1.89 0.04 2 0.889 0.04 3 2.78 0.04 3 0.906 0.02 5 4.71 0.02 5 0.747 0.06 5 4.21 0.06 5Consider a zero-coupon bond with a $1000 face value and 8 years left until maturity. If the YTM of this bond is 8.4%, then what is the price of this bond? The price of this bond is $ (round to two decimal places)
- A $1000 bond with coupons at j2 = 8% is purchased to yield j2 = 7%. The write down in the first period after purchase is $4.01. What is the purchase price of the bond?Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.9%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ (Round to the nearest cent.)What is the current value of a 30-year bond making semi-annual coupon payments that has a face value of $1,000 and a coupon rate of 8%, if the YTM is 4%, how much does the bond currently sell for? Does the bond sell at a discount, premium, or at face value? Reference the below formulas when solving the problem above: PV = FV / (1+r)^t FV = PV(1+r)^t FVA = PMT(((1+r)^t) -1) / r FVA = PMT((1+(r/12)^t(12))-1)/(r/12) PVA = PMT(((1-(1+r)^-t) / r)) PVA = PMT((1-(1+(r/12))^-t(12)))/(r/12) Bo = PMT ((1-(1+r/2)^-t(2))) / r/2 + FV / (1+r/2)^t(2)
- What is a bond’s current yield if it’s ytm is 10% and it’s current price is 900. It pays coupons of 6% and has 6 years to maturity. Face value is 1000. What is current yield? Current Price is given as 900. What if it was not given?You purchased a coupon-bearing bond at $1000 and resold it at $1200 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? OA 0.060 O B. 0.050 OC. 0.200 O D. 0.26For a 1 year tbill.. with a coupon of 0.75 n = 1 face value = 98.503 market price = 98.434 what is the yield of the bond