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10. A 3-year bond paying 8% coupons semiannually has a current price of $97.4211 and a...
Question 4 (10 points) A 20-year maturity, 10% coupon bond paying coupons semiannually is callable in...
Question 4 (10 points) A 20-year maturity, 10% coupon bond paying coupons semiannually is callable in 5 years at a call price of$1,100. The bond currently sells at a yield to maturity of 8% (4% per half-year). aWhat is the yield to call? b. What is the yield to call if the call price is only $1,050 .What is the yield to call if the call price is $1,100, but the bond can be called in 2 years instead of...
A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a...
A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 7% (3.5% per half-year). a. What is the yield to call annually? (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Meld to call 010144 b. What is the yield to call annually if the call price is only $1,050? (Do not round Intermediate calculations. Round your...
A corporate bond with annual coupons has a duration of 4.2 years and a yield to...
A corporate bond with annual coupons has a duration of 4.2 years and a yield to maturity of 4%. Attempt 1/5 for 8 pts. Part 1 Using the duration approximation, what would be the percentage change in the bond's price (ΔP/P) if yields increase by 30 basis points? Enter your answer as a decimal number, not a percentage.
A bond that pays interest semiannually has a 2.5 percent promised yield and a price of...
A bond that pays interest semiannually has a 2.5 percent promised yield and a price of $1,225. Annual interest rates are now projected to increase 50 basis points. The bond's duration is 10 years. What is the predicted new bond price after the interest rate change? (Watch your rounding.)
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for...
Suppose a 10-year, $1,000 bond with a 8% coupon rate and
semiannual coupons is trading for a price of $1,135.41.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 8% APR, what
will the bond's price be?
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1,135.41. a. What is the bond's yield to maturity...
A nine-year bond has a yield of 10% and a duration of 7.210 years. If the...
A nine-year bond has a yield of 10% and a duration of 7.210 years. If the bond's yield increases by 25 basis points, what is the percentage change in the bond's price as predicted by the duration formula? (Input the value as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) The bond's price increased by decreased by
A 10-year maturity, 6.5% coupon bond paying coupons semiannually is callable in five years at a...
A 10-year maturity, 6.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,010. The bond currently sells at a yield to maturity of 6% (3% per half-year). a. What is the yield to call annually? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to call | b. What is the yield to call annually if the call price is only $960? (Do not round intermediate calculations. Round your...
5) Consider a 4-year, $1000 par value bond with zero coupons. If the yield to maturity is 10%, what would be the price...
5) Consider a 4-year, $1000 par value bond with zero coupons. If the yield to maturity is 10%, what would be the price of this bond? If the yield to maturity increases to 12% how much does the bond's price change?
4.1.2 Atwelve-year 100 par value bond pays 7% coupons semiannually. The bond is priced at 115.84...
4.1.2 Atwelve-year 100 par value bond pays 7% coupons semiannually. The bond is priced at 115.84 to yield an annual nominal rate of 6% compounded semiannually. Calculate the redemption value of the bond.
In February 2015, Treasury offered a semiannually compounded 4.8% 25-year bond with yield to maturity of...
In February 2015, Treasury offered a semiannually compounded 4.8% 25-year bond with yield to maturity of 2.60% (annual rate). The par value is $1,000. Recognizing that coupons are paid semiannually, a) Calculate the bond's price as of February 2015. b) Calculate the bond's price as of February 2020 (everything else stays the same)
Question 4 (10 points) A 20-year maturity, 10% coupon bond paying coupons semiannually is callable in 5 years at a call price of$1,100. The bond currently sells at a yield to maturity of 8% (4% per half-year). aWhat is the yield to call? b. What is the yield to call if the call price is only $1,050 .What is the yield to call if the call price is $1,100, but the bond can be called in 2 years instead of...
A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 7% (3.5% per half-year). a. What is the yield to call annually? (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Meld to call 010144 b. What is the yield to call annually if the call price is only $1,050? (Do not round Intermediate calculations. Round your...
Suppose a 10-year, $1,000 bond with a 8% coupon rate and
semiannual coupons is trading for a price of $1,135.41.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 8% APR, what
will the bond's price be?
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1,135.41. a. What is the bond's yield to maturity...
A nine-year bond has a yield of 10% and a duration of 7.210 years. If the bond's yield increases by 25 basis points, what is the percentage change in the bond's price as predicted by the duration formula? (Input the value as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) The bond's price increased by decreased by
A 10-year maturity, 6.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,010. The bond currently sells at a yield to maturity of 6% (3% per half-year). a. What is the yield to call annually? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to call | b. What is the yield to call annually if the call price is only $960? (Do not round intermediate calculations. Round your...
5) Consider a 4-year, $1000 par value bond with zero coupons. If the yield to maturity is 10%, what would be the price of this bond? If the yield to maturity increases to 12% how much does the bond's price change?
4.1.2 Atwelve-year 100 par value bond pays 7% coupons semiannually. The bond is priced at 115.84 to yield an annual nominal rate of 6% compounded semiannually. Calculate the redemption value of the bond.
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