Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 22...
Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 21 years, for $212.30. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bonds life? (Round to the nearest cent). I got it wrong, so they changed the question a little bit. I reposted it, but it mentions neither of those.
1) Cyberdyne Systems is issuing a series of zero coupon bonds to raise $500M to fund research and development at its Skynet division. Each bond will have a face value of $1,000 and will mature in 17 years. The yield on the bond is 4.5%. What is the fair price for one of Cyberdyne's zero coupon bonds? The fair price for one of Cyberdyne's zero coupon bonds is $ 2) Suppose you purchase a zero coupon bond with a face...
What is the value of a Zero Coupon Bond with $1,000 Face Amount, maturing in 3 years. Assume similar bonds have a Yield to Maturity (YTM) of 3.5%
a. A firm issues a zero-coupon bond with a face value of $1,000, maturing in five years. Bonds with similar risk are currently yielding 5 percent per year. What is the value of the bond?
1) You need to determine the market value of a $1,000 face value bond maturing in 5 years. The market yield (interest rate) for this type of bond is 3.1%. What is its market value? (Round to the nearest penny). 2) A year ago, you purchased a $1,000 face value bond for $1024. A year later you sold the bond for $1,007 after receiving a coupon payment of $55. What was your rate of capital gain? (Answer in tenth of...
1) You need to determine the market value of a $1,000 face value bond maturing in 5 years. The market yield (interest rate) for this type of bond is 3.1%. What is its market value? (Round to the nearest penny). 2) A year ago, you purchased a $1,000 face value bond for $1024. A year later you sold the bond for $1,007 after receiving a coupon payment of $55. What was your rate of capital gain? (Answer in tenth of...
Suppose that you are considering the purchase of a coupon bond with a face value of $1,000 that matures after four years. The coupon payments are 6 percent of the face value per year. a. How much would you be willing to pay for this bond if the market interest rate (that is, the best alternative investment option) is also 6 percent? b. Suppose that you have just purchased the bond, and suddenly the market interest rate falls to 5...
A zero-coupon bond with a 2-year maturity and face value of $1,000 is trading at $975. What is this bond's yield to maturity? Round to the nearest tenth of a percent (e.g. 4.32% = 4.3). Numeric Answer:
What is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 6 years if the appropriate discount rate is 8%. Please round your answer to the nearest cent.
BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 9.3%. If Janet sold the bond today for $1,026.98, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. % BOND VALUATION Madsen Motors's bonds have 12 years remaining to...