*Please rate thumbs up
Question 4 5 pts semi-annual coupon payments. The bond's price should be $. Do not round...
A 10-year 5.3% coupon bond was issued 1 years ago. Similarly risky bonds are yielding 5.6%. Assume semi-annual coupon payments. The bond's price should be $___________. Do not round any intermediate work. Round your *final* answer to 2 decimal places (example: 1234.567 = 1234.57). Do not enter the $ sign. Margin of error for correct responses: +/- .05.
A(n) 9.7% bond with 5 years left to maturity has a YTM of 9.2%. The bond's price should be $__________. You should assume that the coupon payments occur semiannually. Do not round any intermediate work. Round your *final* answer to 2 decimal places (example: 1234.567 = 1234.57). Do not enter the $ sign. Margin of error for correct responses: +/- .05.
A(n) 9.2% bond matures in 5 years and has a current yield (not YTM) of 5.5%. The bond's current trading price is $ Do not round any intermediate work. Round your final answer to 2 decimal places (example: 1234.567 1234.57). Do not enter the $ sign. Margin of error for correct responses/lt/.05. NOTE: You should refer to the definition of "current yield" from your class notes. The definition in your textbook should be ignored, as it might cause confusion.
A 4.9% bond matures in 10 years. The bond pays coupons semiannually, and has a YTM of 4.9%. The price of the bond is $_________. Do not round any intermediate work. Round your *final* answer to 2 decimal places (example: 1234.567 = 1234.57). Do not enter the $ sign. Margin of error for correct responses: +/- .05.
Question 10 5 pts You will receive a series of $1,216 payments, annually, beginning exactly 6 years from today, for a total of 10 payments. The relevant interest rate (your opportunity cost) is 8% (as an EAR). What is the present value today. (year O) of this series of payments? Do not round any intermediate work. Round your final answer to 2 decimal places (ex: if your answer is 12.345678 then you should enter 12.35). Margin of error for correct...
Patricia Johnson is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.325 percent. If these bonds have a market price of $988.09, what yield to maturity can she expect to earn? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)
Question 10 5 pts A stock has a Beta of 1.0. The risk-free rate is 5.6%, and the Market Risk Premium is estimated at 7%. The firm's cost of common equity, Re, is_ %. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process. Margin of error for correct responses: +/-.02.
A bond with 7 years left to maturity is trading for $967. It pays coupons semiannually. Its YTM is currently 3.6%. The coupon rate for this bond must be ________%. Do not round any intermediate work. Round your *final* answer to 2 decimal places (example: .1234567 = 12.35). Do not enter the % sign. Margin of error for correct responses: +/- .03%.
Sarah Allen is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.275 percent. If these bonds have a market price of $982.49, what yield to maturity can she expect to earn? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)
Question 12 (5 points) 12. Compute the price of a 3.25 percent coupon bond with 5 years left to maturity and a market interest rate of 5.75 percent. (Assume interest payments are semi-annual) (just type the number without $ and round up to second decimal places. For example, if your answer is $750.84, enter 750.84). Question 13 (5 points) 13. A bond has a coupon rate of 7.5 %, pays semiannual interest, and has 12 years left to maturity. The...