The present value of bond is :
PV = FV / (1 + YTM)^N
The yield is 3.9%, The N = 3 Years.
= $100/ (1.039)^3
= $89.16 ( ROUNDED OFF TO TWO DECIMAL PLACES)
So, the correct option is option C.
Use the following information to answer the question(s) below. Suppose the current zero - coupon yield...
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) YTM 4.99% 5.79% 5.99% 6.03% What is the price per $100 face value of a four-year, zero-coupon, risk-free bond? The price per $100 face value of the four-year, zero-coupon, risk-free bond is $ . (Round to the nearest cent.) The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) YTM - 5.54% 4.99% 5.54% 5.97% 6.06% What is the risk-free interest rate for a...
Please solve this question! Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 4 Yield to Maturity 4.46% 4.82% 5.03% 5.1 8% 5.45% a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond? b. What is the price per $100 face value of a 5-year, zero-coupon, risk-free bond? c. What is the risk-free interest rate for a 1-year maturity? Note: Assume annual compounding. a. What is the price per $100...
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 5.01% 5.47% 5.79% 5.94% 6.08% What is the price per $ 100 face value of a two-year, zero-coupon, risk-free bond? The price per $ 100 face value of the two-year, zero-coupon, risk-free bond is $......... (Round to the nearest cent.)
The current zero-coupon yield curve for risk-free bonds is as follows: 1 5 Maturity (years) YTM 5.00% 5.50% 5.75% 5.95% 6.05% What is the price per $100 face value of a four-year, zero-coupon, risk-free bond? The price per $100 face value of the four-year, zero-coupon, risk-free bond is $ . (Round to the nearest cent.)
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 5.00 %5.00% 5.50 %5.50% 5.75 %5.75% 5.95 %5.95% 6.05 %6.05% What is the price per $ 100$100 face value of a two-year, zero-coupon, risk-free bond? The price per $ 100$100 face value of the two-year, zero-coupon, risk-free bond is $nothing. (Round to the nearest cent.)
Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 Yield to Maturity 4.37% 4.71% 4.92% 5.28% 5.51% a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond? b. What is the price per $100 face value of a 5-year, zero-coupon, risk-free bond? c. What is the risk-free interest rate for a 4-year maturity? Note: Assume annual compounding. a. What is the price per $100 face...
Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 Yield to Maturity 4.13% 4.61% 4.86% 5.25% 5.62% a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond? b. What is the price per $100 face value of a 4-year, zero-coupon, risk-free bond? c. What is the risk-free interest rate for a 2-year maturity? Note: Assume annual compounding. a. What is the price per $100 face value...
Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows:Maturity (years)12345Yield to Maturity4.75%5.07%5.35%5.73%6.02%a. What is the price per $100 face value of a 3-year, zero-coupon risk-free bond?b. What is the price per $100 face value of a 5-year, zero-coupon, risk-free bond?c. What is the risk-free interest rate for a 4-year maturity?Note: Assume annual compounding.
5. The current (short-run) Yield Curve is as follows: Maturity (years1 Zero coupon YTM 4 4.70% 2 3 4.50% 4.00% 4.30% 4.80% a. What is the price today of a two year default-free bond with a face value of $1000 and an annual coupon rate of 6%. Does this bond trade at a discount, at par, or at a premium? b. Consider a four year, default-free bond with annual coupon payments and a face value of $1000 that is issued...
Consider the following zero‐coupon yield curve developed from current yields on risk-free securities: Maturity (years) Zero-Coupon Yield 1 2 4 5 4.80% 5.00% 5.20% 5.50% 5.80% The forward rate for year 4 (the forward rate quoted today for an investment that begins in three years and matures in four years) is closest to: 5.50% а. 1.38% b. 5.35% С. 6.40% Od. 5.97% е. Ln