41. Consider the following bonds: Bond A: 10% coupon, paid annually, matures in 3 years Bond...
Suppose a bond matures in 4 years with a coupon rate of 6% paid semi-annually and a yield-to-maturity of 10%, has a duration of 3.02. Using modified duration, what is the percentage change in price of the bond if the interest rate (ie, yield) decreases by 0.5%? A.-1.44% B.-0.50% OC. 0.50% CD. 1 .44%
1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and the par value is 1000. the bond is callable in 2 years at a call price of $1050. the price of the bond today is $1075. what is the bonds yield to call? 2. midea cooperation bonds mature in 3 years and have a yield to maturity of 8.5%. the par value is 1000. the bond has a 10% coupon rate and pay interest...
Question Find the equilavent years to maturity ofa zero-coupon bond to one that has a coupon rate of 8.60%, 5 years to maturity and a yield to maturity of 9.20% Find the equilavent years to maturity of a zero-coupon bond to one that has a coupon rate of 660% (annual coupons) 10 years to maturity, and a yield to maturity 3 of 6.00%. Find the approximate percentage change in the price of a bond due to a 10 basis point...
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...
Consider a 10% coupon issue that matures in 10 years and 2 months, interest is paid semiannually and investors require a quoted 8% yield-to-maturity. Suppose that as of the next interest date, the bond will have 10 years of life remaining. What should this bond sell for?
A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and is selling today at $883.31. What is the yield to maturity for this bond? a. 6% b. 7% c. 8% d. 9%
3. An investor has two bonds in his portfolio. Each bond matures in 10 years, has a face value of $1,000, and has a yield to maturity equal to 8 percent. One bond, Bond C, pays an annual coupon of 14 percent, the other bond, Bond Y, pays an annual coupon of 4 percent. a) Assuming that the yield to maturity for each bond remains at 8 percent over the next ten years, what will be the price of each...
A 8.6 percent coupon (paid semiannually) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $915. value: 25.00 points Calculate the yield to maturity on the following bonds. a. A 8.6 percent coupon (paid semiannually) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $915. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) Yield to maturity % per...
Approaches An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 6.5%. One bond, Bond C, has a 10% coupon (paid semiannually); the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 6.5% over the next 4 years, what will be the price of each of the bonds at the following...
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a 584.52 discount from par value. The approximate yield to maturity on this bond is A6% B. 7% C. 8% D. 9% For a discount bond, its coupon rate is_than its yield to maturity and its price is expected to ___over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A...