1. What happens to the price of a 3-year bond (with par value $1,000) with an...
What happens to the price of a three-year bond with an 8% coupon when interest rates change from 8% to 5%? A price increase of $71.54 A price decrease of $71.54 A price increase of $81.70 A price decrease of $81.70
Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity: Periods per year. Periods to maturity: Coupon rate: Par value: Periodic payment: Current price 8% $1,000 $1,100 b. What would be the price of the bond if market interest rates change to: 12% 6% 10% Nominal market rate, r: Value of bond:
Question 1 What is the price of a zero-coupon 21-year maturity bond per face (par) value of $1,000 if the annual market rates for these bonds are 8%? Question 2 What is the price of a 17-year bond paying 8.8% annual coupons with a face (par) value of $1,000 if the market rates for these bonds are 6.8%? Question 3 What is the price of a 14-year bond paying an annual coupon rate of 9.4%, but paying it semiannually, per...
What happens to the price of a three-year bond with an 8% coupon when interest rates change from 8% to 5%?
what happens to the current price of a bond if the bond has a larger par value no change cannot be determined without knowing the market interest rate increase decrease
A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually with an 8 percent coupon rate and is priced to have a 7.5 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much would the bond’s price change? Bonds Price (increase/decrease) by ___________________
An investor purchased the following live bonds. Each bond had a par value of $1,000 and a 8% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 6%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Enter all amounts as positive numbers. Do not round intermediate calculations. Round your monetary answers to...
The par value of a bond is less than its current price. Which one of the following applies to this bond? --the answer for #1 I got was $44.21 decrease & it was incorrect. The par value of a bond is less than its current price. Which one of the following applies to this bond? --- I put yeild to maturity is greater than the coupon rate & that was incorrect Question 1 6 pts A 4.25% coupon rate bond...
The price of a 30-year bond with an 8% coupon rate and $1,000 par will _____ when the yield rises from 8% to 9%? A) increase of $103 C) decrease of $103 B) increase of $73 D) decrease of $73
What is the value of a $1,000 par value six-year bond with a 6.75% coupon paid semi-annually that is priced to yield 5.95% $1,121.70 $1,033.03 $1,039.88 $986.06 Question 8 2 pts You own a three-year bond with a 4.50% coupon paid semi-annually. The bond is priced to yield 4.50%. If rates remain unchanged over the upcoming year the value of the bond will be: O Lower O Not enough information provided The same O Higher