Question 6 (1 point) You own a zero-coupon bond of Amazon. It matures in 11 years,...
You own a zero-coupon bond of Amazon. It matures in 4 years, has a face (par) value of $1,000. An investor is interested in buying the bond from you it she can earn a yield to maturity of 11.00%. How much is the investor willing to pay for the bond (What is the value of the bond)?
Question 2 (1 point) Bond B matures in 23 years, has a face (par) value of $1.000, and has a yield to maturity of 9.50%. Bond B is a zero coupon bond. What is the value of the bond? (Express your answer to the nearest cent. i.e one thousand dollors would be entered as 1000.00) Your Answer
You own a bond that has a 6% annual coupon rate and matures 5 years from now. You purchased this 10-year bond at par value when it was originally issued. Which one of the following statements applies to this bond if the relevant market interest rate is now 5.8% (yield to maturity)? You purchase a bond with a coupon rate of 6.25% and a par value of $1,000. There are 53 days to the next semiannual coupon payment date 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...
A 6% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 6.7254%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places.
You are considering the purchase of a zero Coupon Bond with a Face Value of $100,000, which matures in seven years. In the markets this bond is selling for $69,431.77. If you purchase the bond at this price what is the Yield-to-Maturity (YTM) on the investment? (The answer is a percent, round your answer to two decimal place, e.g. 4.75)
A zero coupon bond has a face value of $1,000 and matures in 6 years. Investors require a(n) 7.2 % annual return on these bonds. What should be the selling price of the bond? If the nominal rate of interest is 12.21 % and the real rate of interest is 8.76 % what is the expected rate of inflation? A Ford Motor Co. coupon bond has a coupon rate of 6.75%, and pays annual coupons. The next coupon is due...
You are considering the purchase of CJ, Inc. bonds that mature in 25 years, and have a 8.875% coupon rate. Coupon payments are made semi-annually. If the appropriate required rate of return for this bond is 6.00, what is the value of the bond? (Express your answer to the nearest cent. i.e one thousand dollors would be entered as 1000.00.
A 6% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 6.6132%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places. Bond's price: $ YTM:
A 6% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 6.5996%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places. Bond’s price: $ YTM: %