Question

B.

A Japanese company has a bond outstanding that sells for 91 percent of its ¥100,000 par value. The bond has a coupon rate of 5 percent paid annually and matures in 12 years.

What is the yield to maturity of this bond (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

C.

Say you own an asset that had a total return last year of 11.6 percent. If the inflation rate last year was 6.7 percent, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

D.

Locate the Treasury issue in Figure 7.4 maturing in May 2030. Assume a par value of $10,000.

1.	What is its coupon rate? (Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.)
2.	What is its bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
3.	What was the previous day’s asked price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 7 percent, has a YTM of 5 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 5 percent, has a YTM of 7 percent, and also has 13 years to maturity. The bonds have a $1,000 par value.

What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In four years? In nine years? In 11 years? In 13 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Answer 1

K = N

Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k]     +   Par value/(1 + YTM)^N

k=1

K =12

91 =∑ [(5*100/100)/(1 + YTM/100)^k]     +   100/(1 + YTM/100)^12

k=1

YTM% = 6.08

Using Calculator: press buttons "2ND"+"FV" then assign

PV =-91

PMT = Par value * coupon %=100*5/(100)

N =12

FV =100

CPT I/Y

Using Excel

=RATE(nper,pmt,pv,fv,type,guess)

=RATE(12,-5*100/(100),91,-100,,)

Please ask remaining parts seperately, questions are unrelated