Homework Answers
1 - ON CORPORATE BOND INTEREST WILL BE = 1000*3.45/100*2=69
2 - ON COUPON TREASURY NOTE = 1000*4.20/100=42
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Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your...
Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your...
Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your answers to 2 decimal places.) 4.75 percent coupon corporate bond (paid semiannally) __________ 5.40 percent coupon treasury note _______ Corporate zero-coupon bond maturing in ten years ______
Determine the interest payment for the following three bonds. (Assume a $1,000 par value) (Round your...
Determine the interest payment for the following three bonds. (Assume a $1,000 par value) (Round your an places.) swers to 2 de 3.80 percent coupon corporate bond (paid semiannually) 4.55 percent coupon Treasury note Corporate zero-coupon bond maturing in 10 years 19.00
Determine the interest payment for the following three bonds (Assume a $1,000 par value.) (Leave no...
Determine the interest payment for the following three bonds (Assume a $1,000 par value.) (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places): $ 4.25 percent coupon corporate bond (paid semiannually) 4.90 percent coupon Treasury note Corporate zero coupon bond maturing in 15 years $ $
determine interest payment for the following three bonds. (assume a 1000 value)3.45 % coupon corporate bond(...
determine interest payment for the following three bonds. (assume a 1000 value)3.45 % coupon corporate bond( paid semiannually),4.20% coupon treasury note, coorporate zero- coupon bond maturing in 10 years
Problem 12-01 What would be the initial offering price for the following bonds (assume $1,000 par...
Problem 12-01 What would be the initial offering price for the following bonds (assume $1,000 par value and semiannual compounding)? Do not round intermediate calculations. Round your answers to the nearest cent. a. A 14-year zero-coupon bond with a yield to maturity (YTM) of 12%. $ b. A 22-year zero-coupon bond with a YTM of 10%. $ Calculate the Macaulay duration of an 8%, $1,000 par bond that matures in three years if the bond's YTM is 14% and interest...
Semiannual interest Find the value of a bond maturing in 4 years, with a $1,000 par value
Semiannual interest Find the value of a bond maturing in 4 years, with a $1,000 par value and a coupon interest rate of 13% (6.5% paid semiannually) if the required return on similar-risk bonds is 17% annual interest (8.5% paid semiannually). The present value of the bond is $ _______ . (Round to the nearest cent.)
Assume that coupon interest payments are made semiannually and that par value is $1,000 for both...
Assume that coupon interest payments are made semiannually and that par value is $1,000 for both bonds. Coupon rate Time to maturity Required return Bond A 4.75% 5 years 7.03% Bond B 4.75% 25 years 7.03% a. Calculate the values of Bond A and Bond B. (Round your answers to 2 decimal places.) Bond value A Bond value B b. Recalculate the bonds' values if the required rate of return changes to 9.06%. (Round your answers to 2 decimal places.)...
Assume that coupon interest payments are made semiannually and that par value is $1,000 for both...
Assume that coupon interest payments are made semiannually and that par value is $1,000 for both bonds. Coupon rate Time to maturity Required return Bond A 4.50% 5 years 7.038 Bond B 4.508 25 years 7.03% a. Calculate the values of Bond A and Bond B. (Round your answers to 2 decimal places.) Bond value A Bond value B b. Recalculate the bonds' values if the required rate of return changes to 8.72%. (Round your answers to 2 decimal places.)...
(Bond valuation) You are examining three bonds with a par value of $1,000 (you r rate...
(Bond valuation) You are examining three bonds with a par value of $1,000 (you r rate changed. The three bonds are ive $1.000 a maturity) and are concerned with what would happen to the market value interest rates for the market discount Bond A Bond B Bond c abond with 4 years of to maturity that has an annual coupon interest rate of percent, but the interest is paid semiannual abond with 11 years of tomatunity that has an annual...
A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually...
A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually with a 10 percent coupon rate and is priced to have a 9 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much would the bond's price change? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g. 32.16)) Bond's nce creased by 197
Determine the interest payment for the following three bonds. (Assume a $1,000 par value) (Round your an places.) swers to 2 de 3.80 percent coupon corporate bond (paid semiannually) 4.55 percent coupon Treasury note Corporate zero-coupon bond maturing in 10 years 19.00
Determine the interest payment for the following three bonds (Assume a $1,000 par value.) (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places): $ 4.25 percent coupon corporate bond (paid semiannually) 4.90 percent coupon Treasury note Corporate zero coupon bond maturing in 15 years $ $
Problem 12-01 What would be the initial offering price for the following bonds (assume $1,000 par value and semiannual compounding)? Do not round intermediate calculations. Round your answers to the nearest cent. a. A 14-year zero-coupon bond with a yield to maturity (YTM) of 12%. $ b. A 22-year zero-coupon bond with a YTM of 10%. $ Calculate the Macaulay duration of an 8%, $1,000 par bond that matures in three years if the bond's YTM is 14% and interest...
Assume that coupon interest payments are made semiannually and that par value is $1,000 for both bonds. Coupon rate Time to maturity Required return Bond A 4.75% 5 years 7.03% Bond B 4.75% 25 years 7.03% a. Calculate the values of Bond A and Bond B. (Round your answers to 2 decimal places.) Bond value A Bond value B b. Recalculate the bonds' values if the required rate of return changes to 9.06%. (Round your answers to 2 decimal places.)...
Assume that coupon interest payments are made semiannually and that par value is $1,000 for both bonds. Coupon rate Time to maturity Required return Bond A 4.50% 5 years 7.038 Bond B 4.508 25 years 7.03% a. Calculate the values of Bond A and Bond B. (Round your answers to 2 decimal places.) Bond value A Bond value B b. Recalculate the bonds' values if the required rate of return changes to 8.72%. (Round your answers to 2 decimal places.)...
(Bond valuation) You are examining three bonds with a par value of $1,000 (you r rate changed. The three bonds are ive $1.000 a maturity) and are concerned with what would happen to the market value interest rates for the market discount Bond A Bond B Bond c abond with 4 years of to maturity that has an annual coupon interest rate of percent, but the interest is paid semiannual abond with 11 years of tomatunity that has an annual...
A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually with a 10 percent coupon rate and is priced to have a 9 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much would the bond's price change? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g. 32.16)) Bond's nce creased by 197
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