Homework Answers
|
Bond |
Price (in %) |
Coupon Rate (%) |
Required Yield (%) |
Comment on the pricing |
|
A |
95 |
5 |
4 |
Price of this bond should be more than 100% because its coupon rate is more than its yield to maturity. Therefore it is not correctly reported. |
|
B |
93 |
6 |
5 |
Price of this bond should be more than 100% because its coupon rate is more than its yield to maturity. Therefore it is not correctly reported. |
|
C |
120 |
7 |
6 |
Price of this bond might be correct as it is more than 100% because its coupon rate is more than its yield to maturity. But we cannot say it without calculation. |
|
D |
100 |
5 |
5 |
This bond’s price is correctly reported as it is selling at par because of the coupon rate and yield to maturity rate are equal. |
|
E |
102 |
4 |
3 |
Price of this bond might be correct as it is more than 100% because its coupon rate is more than its yield to maturity. But we cannot say it without calculation. |
|
F |
99 |
5 |
6 |
Price of this bond might be correct as it is less than 100% because its coupon rate is less than its yield to maturity. But we cannot say it correctly without calculation. |
Add Answer to:
Examine the following bond price reports and determine which bond might be correctly reported without having...
A coupon bond paying semiannual interest is reported as having an ask price of 105% of...
A coupon bond paying semiannual interest is reported as having an ask price of 105% of its $1,000 par value. If the last interest payment was made 60 days ago and the coupone rate is 4%, what is the invoice price of the bond? Assume there are 182 days between coupon payments. Round your answer to two decimal places, and enter it without a dollar sign. Your Answer: Answer
I am having trouble answering questions 11 and 12. please help Chapter 2 Pricing of Bonds...
I am having trouble answering questions 11 and 12. please
help
Chapter 2 Pricing of Bonds 33 R. Calculate for each of the following bonds price of this debt obligation today is $90,000. What are some reasons why the price of this debt obligation could have declined since you purchased it three years ago? the price per $1,000 of par value assuming semiannual coupon payments. Coupon Rate (%) Years to Maturity Required Yield (%) Bond 11. Suppose that you are...
A coupon bond paying semiannual interest is reported as having an ask price of 105% of...
A coupon bond paying semiannual interest is reported as having an ask price of 105% of its $1,000 par value. If the last interest payment was made 60 days ago and the coupone rate is 496, what is the invoice price of the bond? Assume there are 182 days between coupon payments. Round your answer to two decimal places, and enter it without a dollar sign. Your Answer: Answer Question 9 (1 point) Consider a bond that matures in 7...
A coupon bond paying semiannual interest is reported as having an ask price of 99% of...
A coupon bond paying semiannual interest is reported as having an ask price of 99% of its $1,000 par value. If the last interest payment was made 60 days ago and the coupone rate is 5%, what is the invoice price of the bond? Assume there are 182 days between coupon payments. Round your answer to two decimal places, and enter it without a dollar sign. Your Answer: Answer Question 9 (1 point) Consider a bond that matures in 9...
A coupon bond paying semiannual interest is reported as having an ask price of 126% of...
A coupon bond paying semiannual interest is reported as having an ask price of 126% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 6%, what is the invoice price of the bond? Assume that the month has 30 days. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Invoice price
A coupon bond paying semiannual interest is reported as having an ask price of 112 %...
A coupon bond paying semiannual interest is reported as having an ask price of 112 % of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 6%, what is the invoice price of the bond? Assume that the month has 30 days. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
1. A coupon bond is reported as having a flat ask price of 97.0% of the...
1. A coupon bond is reported as having a flat ask price of 97.0% of the $1,000 par value in the Wall Street Journal. If the last interest payment was made three months ago and the coupon rate is 3.0%, the invoice price of the bond will be A $1,087.50 B. $972.50 C. $977.50 D. $970.00 E. None of the options are correct.
4.Which one of the following statements about the approach to bond pricing is NOT true? Select...
4.Which one of the following statements about the approach to bond pricing is NOT true? Select one: A. To calculate a bond's price, one needs to calculate the present value of the bond's expected cash flows. B. The value, or price, of any asset is the future value of its cash flows. 6.Which one of the following statements is NOT true? Select one: A. The yield to maturity of a bond is the discount rate that makes the present value...
A coupon bond paying semiannual interest is reported as having an ask price of 110% of...
A coupon bond paying semiannual interest is reported as having an ask price of 110% of its $1.000 par value of the last interest payment was made one month ago and the coupon rate is 5% what is the invoice price of the bond? Assume that the month has 30 days. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
15. Which of the following is CORRECT about the arbitrage-free price of a coupon bond? The...
15. Which of the following is CORRECT about the arbitrage-free price of a coupon bond? The sum arbitrage-free price of a coupon bond. The coupon of the present value of all cash flows (discounted at the required yield) is the A. B. C. The the present value of all cash flows (discounted at the spot rate of the bond's final term to maturity) is the arbitrage-free price of a coupon bond. of the present value of all cash flows (discounted...
A coupon bond paying semiannual interest is reported as having an ask price of 105% of its $1,000 par value. If the last interest payment was made 60 days ago and the coupone rate is 4%, what is the invoice price of the bond? Assume there are 182 days between coupon payments. Round your answer to two decimal places, and enter it without a dollar sign. Your Answer: Answer
I am having trouble answering questions 11 and 12. please
help
Chapter 2 Pricing of Bonds 33 R. Calculate for each of the following bonds price of this debt obligation today is $90,000. What are some reasons why the price of this debt obligation could have declined since you purchased it three years ago? the price per $1,000 of par value assuming semiannual coupon payments. Coupon Rate (%) Years to Maturity Required Yield (%) Bond 11. Suppose that you are...
A coupon bond paying semiannual interest is reported as having an ask price of 105% of its $1,000 par value. If the last interest payment was made 60 days ago and the coupone rate is 496, what is the invoice price of the bond? Assume there are 182 days between coupon payments. Round your answer to two decimal places, and enter it without a dollar sign. Your Answer: Answer Question 9 (1 point) Consider a bond that matures in 7...
A coupon bond paying semiannual interest is reported as having an ask price of 99% of its $1,000 par value. If the last interest payment was made 60 days ago and the coupone rate is 5%, what is the invoice price of the bond? Assume there are 182 days between coupon payments. Round your answer to two decimal places, and enter it without a dollar sign. Your Answer: Answer Question 9 (1 point) Consider a bond that matures in 9...
A coupon bond paying semiannual interest is reported as having an ask price of 126% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 6%, what is the invoice price of the bond? Assume that the month has 30 days. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Invoice price
A coupon bond paying semiannual interest is reported as having an ask price of 112 % of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 6%, what is the invoice price of the bond? Assume that the month has 30 days. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
1. A coupon bond is reported as having a flat ask price of 97.0% of the $1,000 par value in the Wall Street Journal. If the last interest payment was made three months ago and the coupon rate is 3.0%, the invoice price of the bond will be A $1,087.50 B. $972.50 C. $977.50 D. $970.00 E. None of the options are correct.
A coupon bond paying semiannual interest is reported as having an ask price of 110% of its $1.000 par value of the last interest payment was made one month ago and the coupon rate is 5% what is the invoice price of the bond? Assume that the month has 30 days. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
15. Which of the following is CORRECT about the arbitrage-free price of a coupon bond? The sum arbitrage-free price of a coupon bond. The coupon of the present value of all cash flows (discounted at the required yield) is the A. B. C. The the present value of all cash flows (discounted at the spot rate of the bond's final term to maturity) is the arbitrage-free price of a coupon bond. of the present value of all cash flows (discounted...
Most questions answered within 3 hours.
-
1- What are 5 general characteristics of Botticelli’s
paintings?
2- Describe 5 important traits of Flemish...
asked 53 minutes ago -
A golfer claims that his average golf score at the course he
plays regularly is less...
asked 1 hour ago -
On May 1, First Bank perfected a security interest in Debtor’s
inventory. On June 1, Bob...
asked 1 hour ago -
A new kind of typhoid shot is being developed by a medical
research team. The old...
asked 3 hours ago -
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 5 hours ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 5 hours ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 8 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 8 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 8 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 8 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 8 hours ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 8 hours ago