1. You find a zero coupon bond with a par value of $5,000 and 19 years to maturity. |
If the yield to maturity on this bond is 5.1 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
2.
You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 10 percent, and 22 years to maturity. You hold the bond for the entire year. Assume semiannual compounding. |
How much interest income will you have to declare on your tax return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
1
K = Nx2 |
Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k] + Par value/(1 + YTM/2)^Nx2 |
k=1 |
K =19x2 |
Bond Price =∑ [(0*5000/200)/(1 + 5.1/200)^k] + 5000/(1 + 5.1/200)^19x2 |
k=1 |
Bond Price = 1920.5 |
Please ask remaining parts seperately, questions are unrelated |
1. You find a zero coupon bond with a par value of $5,000 and 19 years...
2. You find a zero coupon bond with a par value of $5,000 and 19 years to maturity. If the yield to maturity on this bond is 5.1 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
You find a zero coupon bond with a par value of $20,000 and 19 years to maturity. If the yield to maturity on this bond is 5.9 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bond price $
You find a zero coupon bond with a par value of $10,000 and 25 years to maturity. The yield to maturity on this bond is 4.7 percent. Assume semiannual compounding periods. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price
You find a zero coupon bond with a par value of $10,000 and 21 years to maturity. The yield to maturity on this bond is 4.3 percent. Assume semiannual compounding periods. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price $
You find a zero coupon bond with a par value of $20,000 and 17 years to maturity. If the yield to maturity on this bond is 4.9 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bond price $
You find a zero coupon bond with a par value of $25,000 and 18 years to maturity. If the yield to maturity on this bond is 5.7 percent, what is the dollar price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
S07-09 Zero Coupon Bonds [LO2) You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bond price
You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 10 percent, and 22 years to maturity. You hold the bond for the entire year. Assume semiannual compounding. How much interest income will you have to declare on your tax return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
1. You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 10 percent, and 22 years to maturity. You hold the bond for the entire year. Assume semiannual compounding. How much interest income will you have to declare on your tax return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) what is the Interest income $ ? 2. Ayden, Inc., has...
What is the dollar price of a zero coupon bond with 7 years to maturity, semiannual compounding, and a par value of $1,000, if the YTM is: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Bond Price a. 5 percent $ b. 10 percent $ c. 15 percent $