An investor buys a bond for $3,800 that pays out $4,518 in 2 years. This bond...
An investor buys a bond for $3,800 that pays out $4,518 in 2 years. This bond has a yield to maturity of (choose closest value) 4.1% 5.1% 7% 9%
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An investor buys a bond for $3,800 that pays out $4,518 in 2
years. This bond...
D 4. An investor buys a bond for $3,466 that pays out $4,117.99 in 2 years....
D 4. An investor buys a bond for $3,466 that pays out $4,117.99 in 2 years. This bond has a yield to maturity of (choose closest value) 4.1% 5.1% 7% 9%
a. An investor buys a 5 % annual coupon payment bond with three years to maturity....
a. An investor buys a 5 % annual coupon payment bond with three years to maturity. The bond has a yield-to-maturity of 9%. The par value is $1000. i. Determine the market price of the bond. (2 marks) ii. Calculate the bond's duration. (3 marks) b.A bond portfolio consists of the following three annual coupon payment bonds. Prices are per 100 of par value. Modified Duration Yield-to- Coupon (%) Bond Maturity Market (years) Price Maturity (%) (years) 5.23 7.98 Value...
D 3. An investor buys a discount bond that pays out Y = 1,500 in exactly...
D 3. An investor buys a discount bond that pays out Y = 1,500 in exactly 5 years. The interest rate is 3%. If the investor holds the bond for 2 years and then sells it, what it the market price she will get? $1,372.7 $1,385.55 $1,394.2 1,398.85
An investor buys a bond with the following characteristics: Maturity - 10 years Coupon - 4.5%,...
An investor buys a bond with the following characteristics: Maturity - 10 years Coupon - 4.5%, paid once per year Nominal Value - £100 The yield to maturity at the time of purchase is 8.50%. The investor sells the bond immediately after the sixth coupon payment, when the yield to maturity rises to 9.50%. a.What is the investor’s realised annual rate of return after the sale of the bond, assuming that the investor can reinvest received coupons at the yield...
An investor buys a bond with the following characteristics: Maturity - 10 years Coupon - 4.5%,...
An investor buys a bond with the following characteristics: Maturity - 10 years Coupon - 4.5%, paid once per year Nominal Value - £100 The yield to maturity at the time of purchase is 8.50%. The investor sells the bond immediately after the sixth coupon payment, when the yield to maturity rises to 9.50%. a.What is the Macaulay duration of the above bond, at the original time of purchase
1. An investor must choose between two bonds: Bond A pays $102 annual interest and has...
1. An investor must choose between two bonds: Bond A pays $102 annual interest and has a market value of $890. It has 10 years to maturity. I Bond B pays $88 annual interest and has a market value of $800. It has five years to maturity. Assume the par value of the bonds is $1,000. What is the approximate yield to maturity on Bond B? The exact yield to maturity? (Use the approximation formula to compute the approximate yield...
An investor must choose between two bonds: Bond A pays $72 annual interest and has a...
An investor must choose between two bonds: Bond A pays $72 annual interest and has a market value of $925. It has 10 years to maturity. Bond B pays $62 annual interest and has a market value of $910. It has 2 years to maturity. Assume the par value of the bonds is $1,000. Compute the current yield on both bonds. Which bond should she select based on your answer to part a? A drawback of current yield is that...
An investor must choose between two bonds: Bond A pays $85 annual interest and has a...
An investor must choose between two bonds: Bond A pays $85 annual interest and has a market value of $850. It has 10 years to maturity. Bond B pays $80 annual interest and has a market value of $780. It has five years to maturity. Assume the par value of the bonds is $1,000. a. Compute the current yield on both bonds. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) b. Which...
BOND VALUATION An investor has two bonds in her portfolio, Bond C and Bond Z. Each...
BOND VALUATION An investor has two bonds in her portfolio, Bond
C and Bond Z. Each
bond matures in 4 years, has a face value of $1,000, and has a
yield to maturity of 9 6%.
Bond C pays a 10% annual coupon, while Bond Z is a zero coupon
bond.
a. Assuming that the yield to maturity of each bond remains at 9 6%
over the next 4
years, calculate the price of the bonds at each of the...
An investor must choose between two bonds: Bond A pays $92 annual interest and has a...
An investor must choose between two bonds: Bond A pays $92
annual interest and has a market value of $825. It has 15 years to
maturity. Bond B pays $83 annual interest and has a market value of
$720. It has seven years to maturity. Assume the par value of the
bonds is $1,000. a. Compute the current yield on both bonds. (Do
not round intermediate calculations. Input your answers as a
percent rounded to 2 decimal places.)
Bond A...
D 4. An investor buys a bond for $3,466 that pays out $4,117.99 in 2 years. This bond has a yield to maturity of (choose closest value) 4.1% 5.1% 7% 9%
a. An investor buys a 5 % annual coupon payment bond with three years to maturity. The bond has a yield-to-maturity of 9%. The par value is $1000. i. Determine the market price of the bond. (2 marks) ii. Calculate the bond's duration. (3 marks) b.A bond portfolio consists of the following three annual coupon payment bonds. Prices are per 100 of par value. Modified Duration Yield-to- Coupon (%) Bond Maturity Market (years) Price Maturity (%) (years) 5.23 7.98 Value...
D 3. An investor buys a discount bond that pays out Y = 1,500 in exactly 5 years. The interest rate is 3%. If the investor holds the bond for 2 years and then sells it, what it the market price she will get? $1,372.7 $1,385.55 $1,394.2 1,398.85
1. An investor must choose between two bonds: Bond A pays $102 annual interest and has a market value of $890. It has 10 years to maturity. I Bond B pays $88 annual interest and has a market value of $800. It has five years to maturity. Assume the par value of the bonds is $1,000. What is the approximate yield to maturity on Bond B? The exact yield to maturity? (Use the approximation formula to compute the approximate yield...
BOND VALUATION An investor has two bonds in her portfolio, Bond
C and Bond Z. Each
bond matures in 4 years, has a face value of $1,000, and has a
yield to maturity of 9 6%.
Bond C pays a 10% annual coupon, while Bond Z is a zero coupon
bond.
a. Assuming that the yield to maturity of each bond remains at 9 6%
over the next 4
years, calculate the price of the bonds at each of the...
An investor must choose between two bonds: Bond A pays $92
annual interest and has a market value of $825. It has 15 years to
maturity. Bond B pays $83 annual interest and has a market value of
$720. It has seven years to maturity. Assume the par value of the
bonds is $1,000. a. Compute the current yield on both bonds. (Do
not round intermediate calculations. Input your answers as a
percent rounded to 2 decimal places.)
Bond A...
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