Answer:
Interest rate =9.1% annually |
All interest or coupons are paid semi annually |
Each coupon value = 9.1% * 5000/2 = 227.5 |
Hence $227.50 is paid as coupon in every 6 month |
(1 point) A 7-year bond with a face value of 5000 dollars is redeemable at par...
(1 point) A 9-year bond with a face value of 1000 dollars is redeemable at par, pays coupons at 5.9 percent per 6 months, and has a yield rate of 7.6 percent convertible semiannually. Suppose the book value immediately after the payment of the 7th coupon is equal to the price of a perpetuity (at the time of the 7th coupon) that will start making annual payments one year after the 7th coupon. If the perpetuity earns interest at 3.9...
(1 point) A 13-year bond with a face value of 2000 dollars earns interest at 9.2 percent convertible semiannually. Suppose that the yield rate is 7.3 percent convertible semiannually, and that the book value immediately after the 13th coupon payment is 2262.94 dollars. What is the redemption value?
(1 point) Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemption date of the second. Both are bought to yield 11.7 percent convertible semiannually. The first bond sells for 802.61 dollars and pays coupons at 8.3 precent convertible semiannually. The second bond pays coupons at 5.2 percent per half year. What is the price of the second bond?
(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) 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.
(1 point) Two bonds, each with a face value of $18000, are redeemable at par in t-years and priced to yield y,-9%. Bond 1 has a coupon rate c4 = 11.4% and sells for $20225.65. Bond 2 has coupon rate c4-4.5% and sells for $ P. What is the value of P? Answer:$
(1 point) Two bonds, each with a face value of $16000, are redeemable at par in t-years and priced to yield 44 = 10%. Bond 1 has a coupon rate C4 = 12% and sells for $17884.50. Bond 2 has coupon rate C4 = 4.2% and sells for $ P. What is the value of P? Answer: $
(1 point) Two bonds, each with a face value of $11000, are redeemable at par in t- years and priced to yield y2-696. Bond i has a coupon rate c2-11.1% and sells for $14523.39. Bond 2 has coupon rate c2-3.7% and sells for $ What is the value of P? Answer: $
Two bonds, each with a face value of $17000, are redeemable at par in n-years and priced to yield j12 = 14.4%. Bond 1 has a coupon rate j12 = 24% and sells for $22793.11. Bond 2 has coupon rate j12 = 7.2% and sells for $ P. What is the value of P?
A 14-year bond with a face value of $1000 is redeemable at twice par and pays coupons semi-annually at j2 = 9.7%. If the yield rate is j2 = 7.6%, find the book value of the bond immediately after the payment of the 11th coupon.