The Federal Government 2-year coupon bond has a face value of $1,000 and pays annual coupons...
6. Spot rates of interest for zero-coupon Government of Canada bonds are observed for different terms to maturity as follows: 1-year spot rate 4% 2-year spot rate 4.5% 3-year spot rate 5% A 3-year bond has a face value of $1,000 and a coupon rate of 7%. It pays coupons annually. What is its value today? (3 marks)
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...
1)A Ford Motor Co. coupon bond has a coupon rate of 7%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 40 years from tomorrow. The yield on the bond issue is 6.15%. At what price should this bond trade today, assuming a face value of $1,000? The price of the bond today should be $ 2) If the nominal rate of interest is 13.07% and the real rate of interest is 7.09 % what...
A Ford Motor Co. coupon bond has a coupon rate of 6.8%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 28 years from tomorrow. The yield on the bond issue is 6.35%. At what price should this bond trade today, assuming a face value of $1,000?
Question 1 What is the price of a zero-coupon 21-year maturity bond per face (par) value of $1,000 if the annual market rates for these bonds are 8%? Question 2 What is the price of a 17-year bond paying 8.8% annual coupons with a face (par) value of $1,000 if the market rates for these bonds are 6.8%? Question 3 What is the price of a 14-year bond paying an annual coupon rate of 9.4%, but paying it semiannually, per...
A coupon bond with a face value of $1200 that pays an annual coupon of $200 has a coupon rate equal to the nearest whole number) %. Round your response to What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $990, pays an annual coupon of $70, and whose price today is $1009 50 OA. 6% B. 5% ОС. 7% OD, 4% OE, 8%...
A bond has eight years to maturity, a $2,000 face value, and a 6.3% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,639? O A. 7.71% OB. 13.5% O C. 11.57% OD. 9.64%
Consider a 3-year risk-free bond, which pays annual coupons. The coupon rate is 3.5% and the face value is 500. The bond is issued at time t=0, pays coupons at time t=1,2,3 and face value at time t=3. You purchase the bond at time t=0. While holding the bond, you do not reinvest the coupon payments. You resell the bond in one year, after getting the first coupon payment. The yield to maturity when you sell is 3.6%. What is...
2. You own a $1,000 face value 10-year bond with semiannual coupons that will mature in 6 years. Immediately after receiving the 8th coupon of $46, you sell the bond and purchase another newly issued $1,000 face value 10-year bond with semiannual coupons of $47.5 each. Given that the prevailing market interest rate is r(2) = 9% and the bond you originally owned is redeemable at 104% of the face value, find the redemption value of the new bond that...
A T-bond with semi-annual coupons has a coupon rate of 3%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 4%, what is its Macaulay Duration? Answer in years, rounded to three decimal places