Homework Answers
| Settlement date | 1/14/2019 | 1/14/2019 | 1/14/2019 |
| Coupon rate | 2.75% | 2.25% | 0.00% |
| Payment frequecy | Annual | Semi-Annual | ZCB |
| term to maturity (years) | 2 | 20 | 5 |
| maturity date | 1/13/2021 | 1/13/2020 | 1/13/2024 |
| Face value | 100 | 1000 | 1000 |
| YTM | 5% | 3.40% | 4.20% |
| Price (using price formula in excel) | 95.82 | 969.13 | 814.16 |
| Current yield = Annual interest payment / Clean price | 2.87% | 2.32% | 0.00% |
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Compute the prices and yields of the following bonds: Issuer Volkswagen JP Morgan Renault Odav Settlement...
Compute the prices and yields of the following bonds: Issuer Volkswagen JP Morgan Renault Settiement Today...
Compute the prices and yields of the following bonds: Issuer Volkswagen JP Morgan Renault Settiement Today Today Today Coupon rate 2.75% 2.25% 0% Frequency coupon payment Term to Maturity Face value Yield to Maturity Price Current Yield Annual Semi-annual Zero-coupon 2 years20 years 5 years $1,000 3.4% 100 4.2% 100 5.0%
SHOW THE COMPLETE CALCULATIONS e the prices and yields of the following bonds: Issuer Volkswagen JP...
SHOW THE COMPLETE CALCULATIONS
e the prices and yields of the following bonds: Issuer Volkswagen JP Morgan Renault JP Morgarn Settlement Coupon rate Frequency coupon Today Today Today 2.75% 2.25% 0% payment Term to Maturity Face value Yield to Maturity Price Current Yield 2 years 100 5.0% 20 years $1,000 3.4% 5 years 100 4.2%
Business School Problem 1: (15 points) Compute the prices and yields of the following bonds Issuer...
Business School Problem 1: (15 points) Compute the prices and yields of the following bonds Issuer Volkswagen JP Morgan Renaut TodayT Settlement Coupon rate Frequency coupon Today Today 2.75% 2.25% 0% payment Term to Maturity Face value Yield to Maturity Price Current Yield AnnualSemi-annual Zero-coupon 2 years 20 years 5 years $1,000 3.4% E100 100 5.0% 4.2% Problem 2: (20 points) Suppose you hold a 6.5 percent coupon bond with a par value of $100 that matures in 14 years...
Compute the prices and current yields of the following bonds STİONS: 15 points) prices and current...
Compute the prices and current yields of the following bonds
STİONS: 15 points) prices and current yields of the following bonds: Bond 3 Today 0% Bond 1 Bond 2 Issuer Settlement Coupon rate Frequency coupon oday Today 6% 4% Semi- annuallyZero-coupon Annually 4 years $1,000 7% payment Term to Maturity 15 years6 years $1,000 $1,000 Face value 6% 8% Yield to Maturity Bond Price Bond Current Yield www.euruni.edu
Bond Valuation Exercise (a) Compute the price / yield of the following bonds. (b) Indicate which...
Bond Valuation Exercise (a) Compute the price / yield of the following bonds. (b) Indicate which bond experiences the biggest price change (in percentage terms) when yields increase by 1%. Issuer Bosch Bank of America Nissan Settlement Today Today Today Coupon 3.50% 2.75% 0% Frequency coupon payment 1 2 Zero-coupon Maturity 2 years from now 25 years from now 6 years from now Face value €100 $100 €100 Yield 2.2% 3.7% 6.3% Price …. …. …. New Yield …....
Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity Zero-Co...
Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity Zero-Coupon Yields 1 year 4.4% 2 years 5.0% 3 years 5.4% 4 years 5.7% 5 years 5.9% What is the price today of a two-year, default-free security with a face value of $1,000 and an annual coupon rate of 8%? Does this bond trade at a discount, at par, or at a premium? Note: Assume annual compounding.
Today is April 15, 2016 (a leap year). We have the prices and yields for the...
Today is April 15, 2016 (a leap year). We have the prices and yields for the following three bonds. Assume that all the bonds have face values of $1,000, and pay semi-annual coupons. Bond Coupon Maturity date Bid $ Yield % 1 5.750 Jun/01/2029 146.76 1.74 2 5.750 Jun/01/2033 154.59 1.97 3 3.500 Dec/01/2045 131.48 2.07 Fill in the blanks in the following table. Clearly show all reasoning and calculations in your answers. Bond Clean price $ Last coupon date...
Saved Problem 3-6 Bond prices and yields A 23-year U.S. Treasury bond with a face value...
Saved Problem 3-6 Bond prices and yields A 23-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity is 5.0% (a six-month discount rate of 5.0/2 = 2.5%). 25 a. What is the present value of the bond? b. If the yield to maturity changes to 1%, what will be the present value? c. If the yield to maturity changes to 8%, what...
Consider two bonds. The first is a 6% coupon bond with six years to maturity, and...
Consider two bonds. The first is a 6% coupon bond with six years to maturity, and a yield to maturity of 4.5% annual rate, compounded semi-annually. The second bond is a 2% coupon bond with six years to maturity and a yield to maturity of 5.0%, annual rate, compounded semi-annually. 1. Calculate the current price per $100 of face value of each bond. (You may use financial calculator to do question 1 and 2, I'm just unsure how to use...
4. Bond Valuation Given the purchase prices, coupons and maturities of four bonds, calculate the yields...
4. Bond
Valuation
Given the purchase
prices, coupons and maturities of four bonds, calculate the yields
to maturity to you, the investor. Assume a $1,000 par value. Bonds
A, B, and C are semi-annual. Bond D is a zero but calculate its
yield with a semi-annual equivalency. Provide your answers to 4
significant digits (example: 6.1234%)
Bond A Price 984.00,
annual coupon 3%, maturing in 2 years
Bond B Price 799.00,
annual coupon 6%, maturing in 5 years
Bond C...
Compute the prices and yields of the following bonds: Issuer Volkswagen JP Morgan Renault Settiement Today Today Today Coupon rate 2.75% 2.25% 0% Frequency coupon payment Term to Maturity Face value Yield to Maturity Price Current Yield Annual Semi-annual Zero-coupon 2 years20 years 5 years $1,000 3.4% 100 4.2% 100 5.0%
SHOW THE COMPLETE CALCULATIONS
e the prices and yields of the following bonds: Issuer Volkswagen JP Morgan Renault JP Morgarn Settlement Coupon rate Frequency coupon Today Today Today 2.75% 2.25% 0% payment Term to Maturity Face value Yield to Maturity Price Current Yield 2 years 100 5.0% 20 years $1,000 3.4% 5 years 100 4.2%
Business School Problem 1: (15 points) Compute the prices and yields of the following bonds Issuer Volkswagen JP Morgan Renaut TodayT Settlement Coupon rate Frequency coupon Today Today 2.75% 2.25% 0% payment Term to Maturity Face value Yield to Maturity Price Current Yield AnnualSemi-annual Zero-coupon 2 years 20 years 5 years $1,000 3.4% E100 100 5.0% 4.2% Problem 2: (20 points) Suppose you hold a 6.5 percent coupon bond with a par value of $100 that matures in 14 years...
Compute the prices and current yields of the following bonds
STİONS: 15 points) prices and current yields of the following bonds: Bond 3 Today 0% Bond 1 Bond 2 Issuer Settlement Coupon rate Frequency coupon oday Today 6% 4% Semi- annuallyZero-coupon Annually 4 years $1,000 7% payment Term to Maturity 15 years6 years $1,000 $1,000 Face value 6% 8% Yield to Maturity Bond Price Bond Current Yield www.euruni.edu
Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity Zero-Coupon Yields 1 year 4.4% 2 years 5.0% 3 years 5.4% 4 years 5.7% 5 years 5.9% What is the price today of a two-year, default-free security with a face value of $1,000 and an annual coupon rate of 8%? Does this bond trade at a discount, at par, or at a premium? Note: Assume annual compounding.
Saved Problem 3-6 Bond prices and yields A 23-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity is 5.0% (a six-month discount rate of 5.0/2 = 2.5%). 25 a. What is the present value of the bond? b. If the yield to maturity changes to 1%, what will be the present value? c. If the yield to maturity changes to 8%, what...
4. Bond
Valuation
Given the purchase
prices, coupons and maturities of four bonds, calculate the yields
to maturity to you, the investor. Assume a $1,000 par value. Bonds
A, B, and C are semi-annual. Bond D is a zero but calculate its
yield with a semi-annual equivalency. Provide your answers to 4
significant digits (example: 6.1234%)
Bond A Price 984.00,
annual coupon 3%, maturing in 2 years
Bond B Price 799.00,
annual coupon 6%, maturing in 5 years
Bond C...
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