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A $1000 par-value 10-year bond with semi-annual coupons is purchased to yield j2 = 8%. The absolute value of the write-up (book value adjustment) for the first year is $5. What is the purchase price of the bond?
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- Consider 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 timelineA one-year premium bond with a face value of $10,000 has been purchased for $11,150. What is the yield to maturity? What is the yield on a discount basis?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.)
- A 30-year bond with par value $1,000 has annual coupons and sells for 1,300. The write-down in the first year is $4.60. What is the yield to maturity on this bond? Hint: The total write downs sum to the total reduction from the purchase price.The market price of a 10-year bond is 957$, its yield to maturity is 8% per year, and annual coupon payments are equal to 957$. The face value of the bond is $1000. Calculate the present value of the bond. Would you buy it? The answer is to be written in the reasons box. Round your answer to the nearest tenth. Optional: Provide calculation details in the reasons box. Answer: Give your reasonsA $1,000 face value bond is currently quoted at 100.8. The bond pays semiannual payments of $22.50 each and matures in six years. What is the coupon rate?
- A 6-year bond pays interest of $80 annually and sells for $975. What is its coupon rate, current yield, and yield to maturity?A 6-year bond pays interest of $80 annually and sells for $950. What are its coupon rate and YTM?A $1000 bond with semi-annual coupons is redeemable at 103 in 5 years. The absolute value of the write down (book value adjustment) in the first coupon is $3.99 and the absolute value of the write down (book value adjustment) in the 5th coupon is $4.85. What is the price of the bond?
- A 6.35 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,095.75. What is the yield to call of the bond? (Assume interest payments are semiannual.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?You purchased a coupon-bearing bond at $800 and resold it at $900 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? O A. 0.075 O B. 0.125 O C. 0.067 O D. 0.200