a | Maturity of the bond | 20 | =40/2 |
b | Coupon rate | 3.83% | =19.16*2/1000 |
c | Face value | $ 1,000 |
Assume that a bond will make payments every six months as shown on theollowing timeline (using...
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0 and ends at Period 40. The timeline shows a cash flow of $ 19.32 each from Period 1 to Period 39. In Period 40, the cash flow is $ 19.32 plus $ 1,000. PeriodPeriod 00 11 22 nothing 3939 4040 Cash FlowsCash Flows nothing $ 19.32$19.32 $ 19.32$19.32 nothing $ 19.32 $ 19.32 plus $...
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 49 50 ------------ se Cash Flows $19.13 $19.13 $19.13 $19.13 + $1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? a. What is the maturity of the bond (in years)? The maturity is | years. (Round to the nearest integer.)
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 49 50 ------------ se Cash Flows $19.13 $19.13 $19.13 $19.13 + $1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? a. What is the maturity of the bond (in years)? The maturity is | years. (Round to the nearest integer.)
P 6-2 (similar to) Question Help Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods) Period 19 20 1 2 Cash Flows $19.09 $19.09+$1,000 $19.09 $19.09 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer)
Assume that a bond will make payments every six months as shown on the following timeline: 21 Cash flow $25.00 $25.00 $25.00 $1,025.00 a. What is the maturity of the bond (in years)? b. What is the coupon rate (in percent)? c. What is the face value? a. What is the maturity of the bond (in years)? The maturity of the bond in years is years. (Round to the nearest integer.) b. What is the coupon rate (in percent)? The...
Assume that a bond will make payments every six months as shown on the following timeline:The timeline starts at Period 0 and ends at Period 18. It shows cash flows of $25.00 in each period from Period 1 to Period 17. In Period 18, the cash flow is $1,025.00.Period 0 1 2---------------------------------17-------------18Cash flow $25.00 $25.00 ...
Bond B is a 3% coupon bond with a yield of 8% that makes payments every month and has a maturity of 10 years. The face value of the bond is $100000. The company who originally sold you bond B have come on hard times. They have informed you that they will not be able to make the next 20 coupon payments but forecast that they will be able to make all payments after this date. What is the new...
A bond is paying $40 coupon every six month. The bond's face value is $1000 and it has 5 years to maturity. By what percentage will the price of the bond change, if the current YTM of 10% decreases to 9% due to a credit rating upgrade? (Provide your answer in percent rounded to two decimals, omitting the % sign.)
d. Assume that you have a one-year coupon bond with a face value of $1,000 and a coupon payment of $50. What is the price of the bond if the yield to maturity is 6%? e. Assume that you have the same bond is in part d, except instead of paying one annual payment of $50, the bond pays two semi-annual payments of $25 (one six months from now and another payment in twelve months). What is the price of...
You buy a 6% semi-annual coupon-bond for $1122.47 with a one-year maturity. Six months later six-month rates are 5% (actually 2.5% return over a six-month period). Diagram the cash flows and calculate the actual realized return with coupon reinvested.