Ten - year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 9.7 percent, what is the value of these bonds?(Round answer to 2 decimal places, e. g. 15.25.)
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Ten - year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 9.7 percent, what is the
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- Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 10.3 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond $Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.3 percent, what is the value of these bonds?Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.4 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond 24 eTextbook and Media
- Laura Hall is planning to buy 10-year zero coupon bonds issued by the U.S. Treasury. If these bonds have a face value of $1,000 and are currently selling at $409.39, what is the expected return on them? Assume that interest compounds semiannually on similar coupon paying bonds. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)The U.S. Treasury has issued 10-year zero coupon bonds with a face value of $1,000. Assume that the bond compounds interest semiannually. What will be the current market price of these bonds if the yield to maturity for similar investments in the market is 6.75 percent? $860 O $520 O $604 O $515The interest rate on one-year Treasury bonds is 0.8 percent, the rate on two-year T-bonds is 0.9 percent, and the rate on three-year T-bonds is 1.0 percent. Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place. % Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place. %
- Suppose a U.S. government bond pays $2,155.40 in 5 years at 6% interest. Calculate the present value of the bond.A $1,000 face value bond issued by the Purud Company currently pays total annual interest of $80 per year and has a 13-year life. a-What is the present value, or worth, of this bond if investors are willing to accept a 10 percent annual rate of return on bonds of similar quality if the bond is a Eurobond? b-How would your answer in (a) change if the bond is a U.S. bond? c-How would your answer in (b) change if, one year from now, investors only required a 6 percent annual rate of return on bond investments similar in quality to the Purud bond? d-Suppose the original bond can be purchased for $925. What is the bond's yield to maturity?A Treasury bond that you own at the beginning of the year is worth $1,020. During the year, it pays $32 in interest payments and ends the year valued at $1,030.What was your dollar return and percent return? (Round "Percent return" to 2 decimal places.)
- Three years age sells for $1,102, answer the following? issued 10-year internatinal bonds that pay US investors 11% semiannually. Assume that the bond has a $1,000-par-value. If the bond currently a. The yield to maturity on this bond is %. (Round to 2 decimal places.) b. If you are expecting the Federal Reserve (US central bank) to lower interest rates in the near future and you want to gain profit by speculating on a bond, will you buy or sell this bond? Explain. (Select the best answer below.) O A. You should not buy the bond. The relationship between bond price and bond yield is direct. If the interest rate drops in the near future, the bond price will decrease. O B. You should buy the bond. The relationship between bond price and bond yield is inverse. If the interest rate drops in the near future, the bond price will increase.You issued debt in the form of bonds, with a face value of $1,000, and have 12 years until maturity. The bonds have an annual coupon rate of 8.4%, which are paid semiannually. a. The current price is $1,115. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) b. The tax rate is 25%. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) a. Pretax cost of debt b. Aftertax cost fo debt % %Current Attempt in Progress Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 10.3 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond $