If a coupon bond has two years to maturity, a coupon rate of 8%, a par...
If a coupon bond has two years to maturity, a coupon rate of 8%, a par value of $800, and a yield to maturity of 12%, then the coupon bond will sell for $ (Round your response to the nearest two decimal place)
The price of a bond and its yield to maturity are Positively related, negitively related, or unrelated.
which of the following statements is not true?
A. The longer to maturity, the greater is the change in the price of a bond from the same size change in the interest rate.
B. Current yield is a better approximation of yield to maturity for long- term bonds when compared to short.
C. Bond prices vary proptionately with the interest rate for both coupon bonds and discount bonds
D. The coupon rate on a coupon bond is fixed once the bond is issued.
Homework Answers
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If a coupon bond has two years to maturity, a coupon rate of
8%, a par...
If a coupon bond has two years to maturity, a coupon rate of 10%, a par...
If a coupon bond has two years to maturity, a coupon rate of 10%, a par value of S900, and a yield to maturity of 14%, then the coupon bond will sell for $(Round your response to the nearest two decimal place The price of a bond and its yield to maturity are Which of the following statements is not true? O A. Current yield is a worse approximation of yield to maturity for long-term bonds when compared to short-term...
1. A bond with two years remaining until maturity offers a 3% coupon rate with interest...
1. A bond with two years remaining until maturity offers a 3% coupon rate with interest paid annually. At a market discount rate of 4%, find the price of this bond per 1000 of par value. 2. A bond offers an annual coupon rate of 5%, with interest paid semiannually. The bond matures in seven years. At a market discount rate of 3%, find the price of this bond per 1000 of par value. 3. A zero-coupon bond matures in...
A bond with a $1,000 par, 4 years to maturity, a coupon rate of 4%, and...
A bond with a $1,000 par, 4 years to maturity, a coupon rate of 4%, and annual payments has a yield to maturity of 4.1%. What will be the actual percentage change in the bond price if the yield changes instantaneously to 5.3%? (If your answer is, e.g., 1.123%, enter it as 1.123.)
7. An IBM bond has 11 years until maturity, a coupon rate of 8%, a par...
7. An IBM bond has 11 years until maturity, a coupon rate of 8%, a par value of $1,000 and sells for $1,150 a. If coupon payments are made semi-annually, what is the yield to maturity for the bond? b. What is the coupon yield on the bond? C. If you sell it after 1 year and interest rates have increased to 7.5%, what return do you earn?
A bond of par value 1,000 pays a coupon of 4% p.a. annually for 20 years...
A bond of par value 1,000 pays a coupon of 4% p.a. annually for 20 years and the par value is 1,000 (coupon calculated on this number and not on maturity value). Calculate the following: The price of the bond and the current yield/ maturity of the bond is also 4%, if the 1. a. maturity value is: . $1,000 i. $950 b. Explain the answers as to the prices of the bonds as to why they are equal to,...
For a discount bond, its coupon rate is_ than its yield to maturity and its price...
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 corporate bond has a 30-year maturity and pays interest annually. The quoted coupon rate is 10% and the bond is priced at par. The boond is callable in 5 years at 120% of par. What is the bonds yield to call? (Choose the closest one)...
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures...
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...
1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and...
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...
Bond Coupon Rate Maturity Year Par Value 1 7.5% 2032 1000 2 8.25% 2029 1000 3...
Bond Coupon Rate Maturity Year Par Value 1 7.5% 2032 1000 2 8.25% 2029 1000 3 6.0% 2023 1000 a.) Assuming that bonds pay annual coupon, estimate the market value of each bond at a discount rate of 7.4% b.) Assuming that bonds pay annual coupon, what will happen to the price of each bond if market rates suddenly decrease from 7.4% to 6.2%? Which of the three bonds will have the greatest percentage change in price? c.) Assuming that...
Coupon rates. What are the coupon rates for the following bonds? Yield to Coupon Years to Coupon Frequency Par Value Maturity Maturity Price Rate $5,000.00 20 $3,925.15 monthly 1,000.00 5% $1,000.00...
Coupon rates. What are the coupon rates for the following bonds? Yield to Coupon Years to Coupon Frequency Par Value Maturity Maturity Price Rate $5,000.00 20 $3,925.15 monthly 1,000.00 5% $1,000.00 semiannual $1,000.00 9% $1,038.90 annual $1,000.00 11% $677.87 20 quarterly Hint: Make sure to round all intermediate calculations to at least six decimal places a. What is the coupon rate for the following bond? (Round to two decimal places.) Yield to Maturity Coupon Years to Coupon Frequency Par Value...
If a coupon bond has two years to maturity, a coupon rate of 10%, a par value of S900, and a yield to maturity of 14%, then the coupon bond will sell for $(Round your response to the nearest two decimal place The price of a bond and its yield to maturity are Which of the following statements is not true? O A. Current yield is a worse approximation of yield to maturity for long-term bonds when compared to short-term...
7. An IBM bond has 11 years until maturity, a coupon rate of 8%, a par value of $1,000 and sells for $1,150 a. If coupon payments are made semi-annually, what is the yield to maturity for the bond? b. What is the coupon yield on the bond? C. If you sell it after 1 year and interest rates have increased to 7.5%, what return do you earn?
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 corporate bond has a 30-year maturity and pays interest annually. The quoted coupon rate is 10% and the bond is priced at par. The boond is callable in 5 years at 120% of par. What is the bonds yield to call? (Choose the closest one)...
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...
Coupon rates. What are the coupon rates for the following bonds? Yield to Coupon Years to Coupon Frequency Par Value Maturity Maturity Price Rate $5,000.00 20 $3,925.15 monthly 1,000.00 5% $1,000.00 semiannual $1,000.00 9% $1,038.90 annual $1,000.00 11% $677.87 20 quarterly Hint: Make sure to round all intermediate calculations to at least six decimal places a. What is the coupon rate for the following bond? (Round to two decimal places.) Yield to Maturity Coupon Years to Coupon Frequency Par Value...
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