SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
CORRECT ANSWER : LAST OPTION
please answer 20 pts Question 1 LO3 Bond Features Maturity (years) 5 Face Value = $1,000...
please answer Question 2 20 pts Bond Features Maturity (years) Face Value = $1,000 Coupon Rate = 2.00% Current Price = $990 Coupon dates (Annual) Time to call (years) 3 Price if Called $1,020 What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date? 2.18% 2.35% O 2.49% 3.03% O 3.00%
Question 2 20 pts Bond Features Maturity (years) Face Value = $1,000 Coupon Rate = 2.00% Current Price = $990 Coupon dates (Annual) Time to call (years) Price if Called $1,020 What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date? 2.18% 2.49% 3.03% 3.0096 2.35%
Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price = $1,100 Coupon dates (Annual) Time to call (years) 3 Price if Called $1,030.00 What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date? A. 0.62% B. 0.63% C. 2.75% D. -0.31% E. 2.73%
Consider two bonds: bond XY and bond ZW . Bond XY has a face value of $1,000 and 10 years to maturity and has just been issued at par. It bears the current market interest rate of 7% (i.e. this is the yield to maturity for this bond). Bond ZW was issued 5 years ago when interest rates were much higher. Bond ZW has face value of $1,000 and pays a 13% coupon rate. When issued, this bond had a...
bond X and bond Y. Bond X has a face value of $1,000 and 10 years to maturity and has just been issued at par. It bears the current market interest rate of 7% (i.e. this is the yield to maturity for this bond). Bond Y was issued 5 years ago when interest rates were much higher. Bond Y has face value of $1,000 and pays a 13% coupon rate. When issued, this bond had a 15-year, so today its...
Intro A corporate bond has 19 years to maturity, a face value of $1,000, a coupon rate of 5.5% and pays interest twice a year. The annual market interest rate for similar bonds is 3.3%. - Attempt 1/10 for 9.5 pts. Part 1 What is the price of the bond (in $)? No decimals Submit Part 2 Attempt 1/10 for 9.5 pts. 2 years later, the market interest rate for similar bonds has gone up to 4.3%. What is the...
A bond has a face value of $1,000 with a maturity date 15 years from today. The bond pays semiannually at a rate of 6% nominal per year based on face value. The interest rate paid on similar corporate bonds has decreased to a current rate of 3%. Determine the market value of the bond.
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...
Assume you buy a bond with the following features Bond maturity = 6 Coupon Rate = 5.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 5.00% Immediately after you buy the bond the interest rate changes to 5.50% What is the "price risk" effect in year 4 ?
1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The bond matures in thirteen years and pays interest semiannually. The coupon rate is 6.25 percent. What is the current price of this bond? 2) The $1,000 face value bonds of Galaxies International have coupon of 5.5 percent and pay interest semiannually. Currently, the bonds are quoted at 98.02 and mature in 12 years. What is the yield to maturity? 3) Variance Logistics wants to...