6 Collecting Coupons Assume that a bond sells for $948; it has semi-annual coupons, a maturity...
For the following, assume the normal case that bond coupons are semi-annual a) What is the yield to maturity (YTM) on a 11-year, 6.4% coupon bond if the bond is currently selling for $1,000? (Assume semi-annual coupons) 1% b) What is the YTM on the above bond if the value today is $925 637 % c) For the bond in a) above, what is your realized (actual) EAR it immediately after you purchase the bond market rates, and the rate...
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
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?
(1 point) A treasury bond has a face value of $14000, semi-annual coupons paid at the annual rate of 3% compounded semi- annually, and several years to maturity. Currently this bond is selling for $12150. Assume that the risk-free interest rate of 2% is compounded continuously, and that the previous coupon has just been paid. Find the forward price for delivery of this bond in 7 years (right after the coupon date):
6. Bond Valuation A BBB-rated corporate bond has a yield to maturity of 9%. AU.S. Treasury security has a yield to maturity of 7.5% These yields are quoted as APRS with semiannual compounding. Both bonds pay semiannual coupons at an annual rate of 8.4% and have five years to maturity a. What is the price (expressed as a percentage of the face value) of the Treasury bond? b. What is the price (expressed as a percentage of the face value)...
Question 10 Homework. Unanswered A T-bond with semi-annual coupons has a coupon rate of 7%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 5%, what is its Macaulay Duration? Answer in years, rounded to three decimal places. Numeric Answer: 1.898 1.898 You are incorrect -------------- Answered - Incorrect 1 attempt left. Change your responses to resubmit
If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and the yield to maturity of 4% sells for $1,067.89, what is its annual coupon rate? A. 4% B. 5% C. 2% D. 3% E. 2.5%
The market price of a semi-annual pay bond is $989.69. It has 24.00 years to maturity and a yield to maturity of 7.10%. What is the coupon rate? The market price of a semi-annual pay bond is $975.36. It has 14.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity? The market price of a semi-annual pay bond is $963.19. It has 14.00 years to maturity and a coupon rate...
A $1000 par value bond with 6 years to maturity pays semi-annual coupons at a rate of 12% APR, with next coupon paid 6-months from today. If the bond is currently priced at $1,049.35, what is it's yield to maturity?
Consider the following two bonds. One bond with a coupon rate of 4%, semi-annual coupons, and 10 years until maturity. The second bond has 5 years until maturity but is otherwise the same. What is the most you should pay for each asset if current yields are 6%? Do the bonds sell at a premium or a discount? Suppose current yields increase to 7%, what are the new bond prices? Which bond is more sensitive to yield changes? Why?