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QUESTION 11 1 point You just purchased a bond for $800. The bond has a face...
(1 point) An investor purchases two bonds with the following properties: Bond 1: Has a face...
(1 point) An investor purchases two bonds with the following properties: Bond 1: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 8.4% annual and was purchased for $1276.13 Bond 2: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 5.6% annual and was purchased for $1058.34 If both bonds mature in the same number of years and the investor yields the same rate...
(1 point) An investor purchases two bonds with the following properties: Bond 1: Has a face...
(1 point) An investor purchases two bonds with the following properties: Bond 1: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 8% annual and was purchased for $1084.58. Bond 2: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 6.4% annual and was purchased for $996.7. If both bonds mature in the same number of years and the investor yields the same rate...
(1 point) A 11-year bond with a face value of $1000 is redeemable at twice par...
(1 point) A 11-year bond with a face value of $1000 is redeemable at twice par and pays coupons semi-annually at C2 = 10.3 %. If the yield rate is y2 = 6.9 %, find the book value of the bond immediately after the payment of the 11th coupon. Answer: $
(1 point) A 10 year $11 000 par-valued bond pays monthly coupons. If the yield rate...
(1 point) A 10 year $11 000 par-valued bond pays monthly coupons. If the yield rate is y 12-9% and the purchase price is $7381.84, what is the coupon rate c12? Answer: (1 point) Two bonds, each with a face value of $13000, are redeemable at par in t-years and priced to yield y4-8%. Bond 1 of P? has a coupon rate c4-11.8% and sells for $15628.24. Bond 2 has coupon rate c-5% and sells for S R What is...
The US government just issued a bond with a $10,000 face value and a coupon rate...
The US government just issued a bond with a $10,000 face value and a coupon rate of 4%. If the bond has a life of 25 years, pays semi-annual coupons, and the yield to maturity is 3%, what is the present value of the bond? Show the values for the buttons that you have pushed.
You paid $957,3 for a 5% 5-year bond, which has a face value of $1000 and...
You paid $957,3 for a 5% 5-year bond, which has a face value of $1000 and pays coupons twice each year. What is the yield-to-maturity? Choose the closest answer A 2% B 3% C 4% D 5% E 6% A bond matured in 15 years has a current yield of 8.35%. The face value is $1000 while the selling price is $1197.93. What is its coupon rate if it pays semi-annual coupon payments? A 4.18% B 5.00% C 8.35% D...
4. You bought a callable bond at the face value two years ago. The bond has...
4. You bought a callable bond at the face value two years ago. The bond has a four- year maturity, a 10 percent annual coupon, a $1,000 face value, and a $1,021 call price. Suppose the bond is called immediately after you have received the second coupon payment. What is the bond's yield to call? A) 10% B) 11% C) 12% D) 14% 5. A corporate bond matures in one year. The bond promises a $50 coupon and principal of...
An investor purchases two bonds with the following properties: Bond 1: Has a face value $1000...
An investor purchases two bonds with the following properties: Bond 1: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 7.7% annual and was purchased for $1200.71. Bond 2: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 5.9% annual and was purchased for $1072.14. If both bonds mature in the same number of years and the investor yields the same rate on both...
(1 point) Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual...
(1 point) Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual coupons at a rate of 4.2 percent per half year. The issuer of the bond has the option to redeem it at the time of the 16th coupon for 2000 dollars, or at maturity for 2000 dollars. Find the price that will guarantee an investor a yield rate of at least 12.1 percent convertible semiannually, regardless of when the bond is redeemed.
You just purchased a bond that matures in 6 years. The bond has a face value...
You just purchased a bond that matures in 6 years. The bond has a face value of $1,000 and a 10% annual coupon.The bond has a current yield of 8%. What is the bond's YTM? Please show how to do this in Excel
(1 point) An investor purchases two bonds with the following properties: Bond 1: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 8.4% annual and was purchased for $1276.13 Bond 2: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 5.6% annual and was purchased for $1058.34 If both bonds mature in the same number of years and the investor yields the same rate...
(1 point) An investor purchases two bonds with the following properties: Bond 1: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 8% annual and was purchased for $1084.58. Bond 2: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 6.4% annual and was purchased for $996.7. If both bonds mature in the same number of years and the investor yields the same rate...
(1 point) A 11-year bond with a face value of $1000 is redeemable at twice par and pays coupons semi-annually at C2 = 10.3 %. If the yield rate is y2 = 6.9 %, find the book value of the bond immediately after the payment of the 11th coupon. Answer: $
(1 point) A 10 year $11 000 par-valued bond pays monthly coupons. If the yield rate is y 12-9% and the purchase price is $7381.84, what is the coupon rate c12? Answer: (1 point) Two bonds, each with a face value of $13000, are redeemable at par in t-years and priced to yield y4-8%. Bond 1 of P? has a coupon rate c4-11.8% and sells for $15628.24. Bond 2 has coupon rate c-5% and sells for S R What is...
4. You bought a callable bond at the face value two years ago. The bond has a four- year maturity, a 10 percent annual coupon, a $1,000 face value, and a $1,021 call price. Suppose the bond is called immediately after you have received the second coupon payment. What is the bond's yield to call? A) 10% B) 11% C) 12% D) 14% 5. A corporate bond matures in one year. The bond promises a $50 coupon and principal of...
(1 point) Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual coupons at a rate of 4.2 percent per half year. The issuer of the bond has the option to redeem it at the time of the 16th coupon for 2000 dollars, or at maturity for 2000 dollars. Find the price that will guarantee an investor a yield rate of at least 12.1 percent convertible semiannually, regardless of when the bond is redeemed.
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