Homework Answers
I read the given rate as 5 1/3%.
2)
Bond's yield to maturity=
percent=(16/3)%
We are given,
Future value of bond=FV=$1000
Time period=n=5 years
YTM=(16/3)%
Price of bond=PV of $1000 to be received after 4 years=FV/(1+i)n=1000/(1+(16/3)%)5=$771.21
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I have got the answer for Q1, please solve Q2 for me. you will
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thank you. INTT 204 ASSIGNMENT Q1) What is the price of an annual coupon bond with...
thank you.
INTT 204 ASSIGNMENT Q1) What is the price of an annual coupon bond with a coupon rate of 10%, $1,000 face value, and 50 years to maturity, if its yield to maturity is 12%? ($833.91) I Q2) Company X is expected to pay an end-of-year dividend of $10 a share. After the dividend its stock is expected to sell at $110. If the market capitalization rate is 10%, what is the current stock price? (Ans. $109.09) Q3) Consider...
if possible please show the how you got the answer using the tvm formula maturity. What...
if
possible please show the how you got the answer using the tvm
formula
maturity. What is the yield of each of the following bonds if interest (coupon) is paid annually? ald to Years to Yield to Par Value $5,000.00 $1,000.00 Coupon Rate Maturity Maturity Price 10% $5,800.00 $1,200.00 5 8% 10 ? $1,000.00 9% 30 $820.00 ? $5,000.00 $4,500.00 6% 15 ? a. What is the yield of the following bond if interest (coupon) is paid annually? (Round to...
Q1. What is the price of the IBM coupon​ bond? Q2. What is the price of...
Q1. What is the price of the IBM coupon​
bond?
Q2. What is the price of AOL coupon bond?
Missing information on a bond. Your broker faxed to you the following information about two monthly coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: B. Fill in the missing data from the information...
Please answer in electronic text. Thank you! 5. P You are looking at a Treasury bond that has a coupon of 4% and makes semiannual coupon payments. It matures in 10 years. a. What are the bond's c...
Please answer in electronic text. Thank you!
5. P You are looking at a Treasury bond that has a coupon of 4% and makes semiannual coupon payments. It matures in 10 years. a. What are the bond's cash flows? b. If the yield to maturity is 3.6% what is the interest rate per period? c. What is the present discounted value of the coupon payments? What is the present discounted value of the principal? What is the price of the...
4 part example I need help with. Calculate the price of a bond that matures in...
4 part example I need help with.
Calculate the price of a bond that matures in 20 years with a coupon rate of 3% paid annually, when the market rate is 3%. Calculate the price of a bond where the coupon rate is 5% (pays annually), the market interest rate is 4%, and the life of the bond is 10 years. Suppose that you have an annual pay 7-year bond with a price of $1,100, paying a 4.5% coupon, with...
The answer is 5.98, but please show me how to do it on the formula that...
The answer is 5.98, but please show me how to do it on the
formula that i sent to get a thums up.
Acoupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is ellin for $1.250 and has eight years to maturity. What is the bond's yield to maturity? (An equation is sufficient.) 3 currently 3. Coupon Bond Using the same strategy used for the fixed-payment loan: P price of coupon bond C...
I am sorry that I have uploaded more than one question, because I still have many...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you.
1.
2
3
A zero-coupon bond has a face value of $1,000 and matures in 2 years. An auction reveals that investors require a(n) 7.0% annual return on this bond. What should be...
NEED ASAP IN 10 MIN PLEAS!!!!! THANK YOU!!! 13 A 20-year maturity bond with face value...
NEED ASAP IN 10 MIN PLEAS!!!!! THANK YOU!!!
13 A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8.80%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the bond's yield to maturity if the bond is selling for $980? 8 00:36:28 Yield to maturity % b. What is the bond's yield to maturity if the bond is selling for...
1. Suppose a five-year, $ 1,000 bond with annual coupons has a price of $ 903.98 and a yield to maturity of 5.7 %. What...
1. Suppose a five-year, $ 1,000 bond with annual coupons has a price of $ 903.98 and a yield to maturity of 5.7 %. What is the bond's coupon rate? The bond's coupon rate is ........... % ( Round to three decimal places.) 2. Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1,000 and a coupon rate of 7.7 % (annual payments). The yield to maturity on this bond...
1, Madsen Motors's bonds have 10 years remaining to maturity. Interest is paid annually; they have...
1, Madsen Motors's bonds have 10 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10%; and the yield to maturity is 11%. What is the bond's current market price? Round your answer to the nearest cent. 2, YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. What is its yield to maturity...
thank you.
INTT 204 ASSIGNMENT Q1) What is the price of an annual coupon bond with a coupon rate of 10%, $1,000 face value, and 50 years to maturity, if its yield to maturity is 12%? ($833.91) I Q2) Company X is expected to pay an end-of-year dividend of $10 a share. After the dividend its stock is expected to sell at $110. If the market capitalization rate is 10%, what is the current stock price? (Ans. $109.09) Q3) Consider...
if
possible please show the how you got the answer using the tvm
formula
maturity. What is the yield of each of the following bonds if interest (coupon) is paid annually? ald to Years to Yield to Par Value $5,000.00 $1,000.00 Coupon Rate Maturity Maturity Price 10% $5,800.00 $1,200.00 5 8% 10 ? $1,000.00 9% 30 $820.00 ? $5,000.00 $4,500.00 6% 15 ? a. What is the yield of the following bond if interest (coupon) is paid annually? (Round to...
Q1. What is the price of the IBM coupon​
bond?
Q2. What is the price of AOL coupon bond?
Missing information on a bond. Your broker faxed to you the following information about two monthly coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: B. Fill in the missing data from the information...
Please answer in electronic text. Thank you!
5. P You are looking at a Treasury bond that has a coupon of 4% and makes semiannual coupon payments. It matures in 10 years. a. What are the bond's cash flows? b. If the yield to maturity is 3.6% what is the interest rate per period? c. What is the present discounted value of the coupon payments? What is the present discounted value of the principal? What is the price of the...
4 part example I need help with.
Calculate the price of a bond that matures in 20 years with a coupon rate of 3% paid annually, when the market rate is 3%. Calculate the price of a bond where the coupon rate is 5% (pays annually), the market interest rate is 4%, and the life of the bond is 10 years. Suppose that you have an annual pay 7-year bond with a price of $1,100, paying a 4.5% coupon, with...
The answer is 5.98, but please show me how to do it on the
formula that i sent to get a thums up.
Acoupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is ellin for $1.250 and has eight years to maturity. What is the bond's yield to maturity? (An equation is sufficient.) 3 currently 3. Coupon Bond Using the same strategy used for the fixed-payment loan: P price of coupon bond C...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you.
1.
2
3
A zero-coupon bond has a face value of $1,000 and matures in 2 years. An auction reveals that investors require a(n) 7.0% annual return on this bond. What should be...
NEED ASAP IN 10 MIN PLEAS!!!!! THANK YOU!!!
13 A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8.80%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the bond's yield to maturity if the bond is selling for $980? 8 00:36:28 Yield to maturity % b. What is the bond's yield to maturity if the bond is selling for...
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