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Assume that the price of a $1,000 zero coupon bond with 7 years to maturity is...
Assume that the price of a $1,000 zero coupon bond with five years to maturity is $567.43 when the required rate of return is 12 percent. If the required rate of return suddenly changes to 13 percent, what is the price elasticity of the bond? -.980 +.980 -.522 +.522
Question Find the equilavent years to maturity ofa zero-coupon bond to one that has a coupon rate of 8.60%, 5 years to maturity and a yield to maturity of 9.20% Find the equilavent years to maturity of a zero-coupon bond to one that has a coupon rate of 660% (annual coupons) 10 years to maturity, and a yield to maturity 3 of 6.00%. Find the approximate percentage change in the price of a bond due to a 10 basis point...
11.2 Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturit The par value of the bond is $1,000, and the bond pays interest annually. a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of return. b. Now, suppose Twin Oaks's four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required...
What is the dollar price of a zero coupon bond with 7 years to maturity, semiannual compounding, and a par value of $1,000, if the YTM is: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Bond Price a. 5 percent $ b. 10 percent $ c. 15 percent $
What would be the current price of a zero-coupon bond with a par value of $1,000, a maturity of 15 years and a yield-to-maturity of 8%? Assume semiannual compounding.
A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield. The bond's price should equal B.The Fishing Pier has 6.40 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,027. What is the yield to maturity? C.Bond Yields Find the promised yield to maturity for a 7% coupon, $1,000 par 20 year bond selling at $1115.00. The bond makes semiannual coupon...
An 8% coupon bond with 3 years to maturity has a yield of 7%. Assume that coupon is paid semi-annually and face value is $1,000. (a) Calculate the price of the bond. (Keep 2 decimal places, e.g. 90.12) (b) Calculate the duration of the bond. (Keep 4 decimal places, e.g. 5.1234) (c) Calculate this bond's modified duration. (Keep 4 decimal places, e.g. 5.1234) (d) Assume that the bond's yield to maturity increases from 7% to 7.2%, estimate the new price...
The following information is for zero-coupon bonds with $1,000 maturity value. Maturity (years) Bond Price ($) 970 940 910 a) Derive the yield curve that is consistent with the above data. b) Assume the liquidity preference hypothesis holds and the liquidity premium for each period is constant at 1%. What is the “true” three-year spot rate?
-What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 11.98 percent per year, has a $1,000 par value, and is currently priced at $918? The bond can be called back in 7 years at a call price $1,089. Assume annual coupon payments. -Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 17 years and a yield to maturity of 10.23 percent,...
Assuming semiannual compounding, what is the price of a zero coupon bond with 11 years to maturity paying $1,000 at maturity if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) а. 5 percent _______ b. 9 percent _______ c. 13 percent _______