Question 1 & 2 1. Calculate the present value of a $1,000 zero-coupon bond with five...

Question

Question

Question 1 & 2
1. Calculate the present value of a $1,000 zero-coupon bond with five years to maturity if the yield to matu- rity is 6%. 2.

Answer 1

Answer #1

fx --PV(C2,C3,C4, C5, C6) B 1 0.06 2 RATE(i/y) | 3 NPER(n) 4 PMT 5 FV 6 TYPE 7 PV Rate Per Period Total No.of periods Payment

--PV(C2,C3,C4,C5, C6) for B 500000 1 2 2 RATE(i/y) | 3 NPER(n) 4 PMT 5 FV 6 TYPE 7 PV 8 9. Rate Per Period Total No.of period

Answer 2

Similar Homework Help Questions

16. A lottery claims its grand prize is $10 million, payable over 5 years at $2,000,000...

16. A lottery claims its grand prize is $10 million, payable over 5 years at $2,000,000 per year. If the first payment 16. A lottery claims its grand prize is $10 million, payable over 5 years at $2,000,000 per year. If the first payment 86 PART 2 Financial Markets is made immediately, what is this grand prize really worth? Use an interest rate of 6%.
A lottery claims its grand prize is %15 million, payable over 5 years at $3,000,000 per...

A lottery claims its grand prize is %15 million, payable over 5 years at $3,000,000 per year. If the first payment is made immediately, what is the grand prize really worth? Use an interest rate of 4%. The real value of the grand prize is ?
This C 3 of 6 (2 complete) IS Question: 1 pt Calculate the present value of...

This C 3 of 6 (2 complete) IS Question: 1 pt Calculate the present value of a $1,300 discount bond with 7 years to maturity if the yield to maturity is 5%. The present value is S (Round your response to two decimal places) This Question: 1 pt 4 of 6 (2 complete) What is the yield to maturity (YTM) on a simple loan for $1,000 that requires a repayment of $3,000 in five years' time? The yield to maturity...

A lottery claims its grand prize is $5 million, payable over 5 years at $1,000,000 per...

A lottery claims its grand prize is $5 million, payable over 5 years at $1,000,000 per year If the first payment is made immediately, what is the grand prize really worth? Use an interest rate of 8% The real value of the grand prize is (Round your response to the nearest dollar)
12. Consider a zero coupon bond with a 4 year maturity. The current yield to matu-...

12. Consider a zero coupon bond with a 4 year maturity. The current yield to matu- rity is 9%. If the yield suddenly changes to 8.5%, by how much would the (Macaulay) duration change? (а). —0.5% (b). 0.0% (c). 0.5% (d). 2.0%
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in...

4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...

What is the yield on a zero-coupon bond with a par value of $1,000, a price...

What is the yield on a zero-coupon bond with a par value of $1,000, a price of $775 and a maturity of 6 years? Assume semi annual compounding.
Zero-coupon bonds: a. A ten-year, zero coupon bond trades at a Yield-to-Maturity (YTM) of 3.5%. Assume...

Zero-coupon bonds: a. A ten-year, zero coupon bond trades at a Yield-to-Maturity (YTM) of 3.5%. Assume you buy $1000 worth of the bond today. How much will it be worth 10 years from now at maturity? b. A 5-year, zero coupon bond trades at a Yield-to-Maturity (YTM) of 2.5%. Assume you buy $1000 worth of the bond today. How much will it be worth 5 years from now at maturity? C. Assume you invest $1,131.41 today and receive $1,410.60 five...
A lottery winner claims a prize of $1.2 million, payable over 30 years at $40,000 per...

A lottery winner claims a prize of $1.2 million, payable over 30 years at $40,000 per year. If the first payment is made immediately, what is this prize really worth given the annual rate of 6.8%?

mu Saved Help Save & Exit A zero-coupon bond with face value $1,000 and maturity of...

mu Saved Help Save & Exit A zero-coupon bond with face value $1,000 and maturity of five years sells for $741.22 Q. What is its yield to maturity? (Round your answer to 2 decimal places.) Yield to maturity b. What will the yield to maturity be if the price falls to $725? (Round your answer to 2 decimal places.) Yield to maturity % < Prey 2 of 5 il Nge> here to search