Homework Answers
| a] | Annual interest = 3000*3.225% = | $ 96.75 |
| b] | Total interest = 96.75*4 = | $ 387.00 |
Add Answer to:
James McCulloch purchased a 30-year U.S. Treasury bond four years ago and paid the face value...
Five years ago you purchased a $1,000 U.S. Treasury bond for $920. At the time of...
Five years ago you purchased a $1,000 U.S. Treasury bond for $920. At the time of purchase it had a 12- year remaining maturity and a 6% coupon (paid semiannually). Market interest rates have decreased 2% since then. What is the current market value of your bond?
Suppose four years ago you purchased a 10-year, zero-coupon bond with a face value of $100...
Suppose four years ago you purchased a 10-year, zero-coupon bond with a face value of $100 at a price of A. The bond currently trades at a price of B. Assume the YTM for this bond has been the same in the past four years (that is YTM in four years ago is equal to the YTM today). Compare the price A v.s. B.
Eight years ago, Burt Brownlee purchased a government bond that pays 6.50 percent interest. The face...
Eight years ago, Burt Brownlee purchased a government bond that pays 6.50 percent interest. The face value of the bond was $1,000. (a) What is the dollar amount of annual interest that Burt received from his bond investment each year? (Do not round intermediate calculations.Round your answer to 2 decimal places.) ts Amount of annual interest 65.00 eBook Print ferences (b) Assume that comparable bonds are now paying 6.15 percent. What is the approximate dollar price for which Burt could...
A four-year bond has a 9% coupon rate and a face value of $1000. If the...
A four-year bond has a 9% coupon rate and a face value of $1000. If the current price of the bond is $848.31, calculate the yield to maturity of the bond (assuming annual interest payments). You will need to use Excel. Please round your answer to two decimal places. Remember to input your answer in decimal form (i.e. 12.34% would be entered as 0.1234). A three-year bond has a 6.0% coupon rate and face value of $1000. If the yield...
The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000....
The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays interest semiannually at a 10% annual rate. What is the bond's price today if the interest rate on comparable new issues is 12%? Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round the answer to the nearest cent. $ What is the price today if the interest rate is 8%? Do...
The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000....
The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays interest semiannually at a 9.4% annual rate. a. What is the bond's price today if the interest rate on comparable new issues is 12%? Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round the answer to the nearest cent. $ b. What is the price today if the interest rate is 8%?...
Two years ago a 10 year 10% annual coupon $1000 face value bond was purchased at...
Two years ago a 10 year 10% annual coupon $1000 face value bond was purchased at a yield of 8%. Right after purchase the interest rates went up to 12%. If this bond is sold today, what is the investor's annual return on this investment? Hint: step 1: find original purchase price of the bond. step 2: find the reinvested value of all received coupons and the sale price of the bond. step 3: compute the annual rate of return...
Problem 7-3 The Altoona Company issued a 25-year bond 5 years ago with a face value...
Problem 7-3 The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays interest semiannually at a 9.8% annual rate. a. What is the band's price today if the interest rate on comparable new issues is 12%? Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round the answer to the nearest cent. 1. What is the price today if the interest rate is...
bond you bought a bond 6 years ago for $3,500. It has a $4,000 face value...
bond
you
bought a bond 6 years ago for $3,500. It has a $4,000 face value
and a nominal annual 10% bond rate, paid quarterly. You'd like to
sell it now and get a nominal annual yield of 8%. How much should
you sell it for
You bought a bond 6 years ago for $3,500. It has a $4,000 face value and a nominal annual 10 % bond rate, paid quarterly (so iR pays 2.5% of the face value each...
Paul White bought 10-year, 10.8 percent coupon bonds issued by the U.S. Treasury three years ago...
Paul White bought 10-year, 10.8 percent coupon bonds issued by the U.S. Treasury three years ago at $902.98. If he sells these bonds, for which he paid the face value of $1,000, at the current price of $840.93, what is his realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)
Eight years ago, Burt Brownlee purchased a government bond that pays 6.50 percent interest. The face value of the bond was $1,000. (a) What is the dollar amount of annual interest that Burt received from his bond investment each year? (Do not round intermediate calculations.Round your answer to 2 decimal places.) ts Amount of annual interest 65.00 eBook Print ferences (b) Assume that comparable bonds are now paying 6.15 percent. What is the approximate dollar price for which Burt could...
Problem 7-3 The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays interest semiannually at a 9.8% annual rate. a. What is the band's price today if the interest rate on comparable new issues is 12%? Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round the answer to the nearest cent. 1. What is the price today if the interest rate is...
bond
you
bought a bond 6 years ago for $3,500. It has a $4,000 face value
and a nominal annual 10% bond rate, paid quarterly. You'd like to
sell it now and get a nominal annual yield of 8%. How much should
you sell it for
You bought a bond 6 years ago for $3,500. It has a $4,000 face value and a nominal annual 10 % bond rate, paid quarterly (so iR pays 2.5% of the face value each...
Most questions answered within 3 hours.
-
D. A student completed 20 courses in the School of Arts and
Sciences. Her grades in...
asked 1 hour ago -
teo
pucks moving on a frictionless air table are about to collide. the
1.5 kg puck...
asked 1 hour ago -
Problem #1
The area between Z = 0 and Z = 2.50
The area between Z...
asked 2 hours ago -
1. What is the meaning of the term communication style?
2. What are the benefits to...
asked 2 hours ago -
9.) You are buying a car that cost $26,500. You make payments of
$412 each month...
asked 2 hours ago -
. Suppose a discrete random variable has probability
distribution
P(x) = .2 if x = 0...
asked 3 hours ago -
Under the influence of its drive force, a snowmobile is moving
at a constant velocity along...
asked 4 hours ago -
Why do organizations decline? What steps can top
management take to halt, decline, and restore organizational...
asked 4 hours ago -
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 5 hours ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 6 hours ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 8 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 8 hours ago