Homework Answers
Given,
Par value = $ 1000
Years to maturity (n) = 18 years
Yield (r) = 4.65% or 0.0465
Solution :-
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Question 15 5 pts Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond...
Question 15 5 pt Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond...
Question 15 5 pt Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.65%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the return over 2 years, Your answer should be between 402 and 22.46, rounded to 2 decimal places, with no special characters.
Question 15 5 pts Two years ago, Bob purchased a 20-year $1.000 par value zero-coupon bond...
Question 15 5 pts Two years ago, Bob purchased a 20-year $1.000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.90%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the return over 2 years. Your answer should be between 4.02 and 22.46, rounded to 2 decimal places, with no special characters.
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000....
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000. Today (with 9 years to maturity) the bond is priced to yield 7.70%. If the bond is sold, what is the total return to the investor (interest plus appreciation) for the 1-year holding period? Hint: The total return includes the coupon rate plus the appreciation (or depreciation) due to the change in rates. Therefore, calculate the current price based on the yield, and then...
Question 14 5 pts One year ago, an investor purchased a 10-year 8% annual coupon bondat...
Question 14 5 pts One year ago, an investor purchased a 10-year 8% annual coupon bondat par of $1,000. Today with 9 years to maturity) the bond is priced to vield 7.653. If the bond is sold what is the total return to the investor (interest plus appreciation) for the 1 year holding period? Hint: The total return includes the coupon rate plus the appreciation for depreciation) due to the change in rates. Therefore calculate the current price based on...
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Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $760. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon....
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $800. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1.026.90, rounded to 2 decimal places, with no special characters.
Question 16 5 pts A 20-year $1,000 par value bond has a 7% annual payment coupon....
Question 16 5 pts A 20-year $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters. nuection 17
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells...
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
Seven years ago you purchased a $1,000 par bond with a 7% semi-annual coupon and 12...
Seven years ago you purchased a $1,000 par bond with a 7% semi-annual coupon and 12 years to maturity at a yield of 6.2%. Today the bond trades at a yield of 9.15%. What is the price of the bond today? A. $1,033.95 B. $639.78 C. $915.25 D. $845.33
A 20 year, 8% semi-annual coupon bond with a par value of $1,000 may be called...
A 20 year, 8% semi-annual coupon bond with a
par value of $1,000 may be called in 10
years at a call price of $1,100. The bond sells for
$1,200.
e. How would the price of
the bond be affected by a change in the going market interest
rates?
Please show work ( by adding numbers or CELL with
formula if needed). Thank you, will rate.
L M N I e a A 20 year, 8% semi-annual coupon bond with...
Question 15 5 pt Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.65%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the return over 2 years, Your answer should be between 402 and 22.46, rounded to 2 decimal places, with no special characters.
Question 15 5 pts Two years ago, Bob purchased a 20-year $1.000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.90%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the return over 2 years. Your answer should be between 4.02 and 22.46, rounded to 2 decimal places, with no special characters.
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000. Today (with 9 years to maturity) the bond is priced to yield 7.70%. If the bond is sold, what is the total return to the investor (interest plus appreciation) for the 1-year holding period? Hint: The total return includes the coupon rate plus the appreciation (or depreciation) due to the change in rates. Therefore, calculate the current price based on the yield, and then...
Question 14 5 pts One year ago, an investor purchased a 10-year 8% annual coupon bondat par of $1,000. Today with 9 years to maturity) the bond is priced to vield 7.653. If the bond is sold what is the total return to the investor (interest plus appreciation) for the 1 year holding period? Hint: The total return includes the coupon rate plus the appreciation for depreciation) due to the change in rates. Therefore calculate the current price based on...
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $760. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $800. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1.026.90, rounded to 2 decimal places, with no special characters.
Question 16 5 pts A 20-year $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters. nuection 17
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
A 20 year, 8% semi-annual coupon bond with a
par value of $1,000 may be called in 10
years at a call price of $1,100. The bond sells for
$1,200.
e. How would the price of
the bond be affected by a change in the going market interest
rates?
Please show work ( by adding numbers or CELL with
formula if needed). Thank you, will rate.
L M N I e a A 20 year, 8% semi-annual coupon bond with...
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