Consider a bond with the following characteristics. Par: $1,000 Two coupon payments per year (i.e., coupons...
Consider a bond with the following characteristics. Par: $1,000 Two coupon payments per year (i.e., coupons are paid semi-annually) Coupon rate: 4.00% Years to maturity: 8 Bond price: $1,000 Suppose that the annual market interest rate for this bond drops by 1%. What is the new bond price? Note: recall that the annual yield-to-maturity (YTM) is the market interest rate on the bond. $1,070.66 $1,000.00 $934.72
Homework Answers
Add Answer to:
Consider a bond with the following characteristics. Par: $1,000
Two coupon payments per year (i.e., coupons...
Consider a bond with the following characteristics: Semi-annual payments, coupon rate of 8%, $1,000 par value....
Consider a bond with the following characteristics: Semi-annual payments, coupon rate of 8%, $1,000 par value. 6 years to maturity. Discount rate (Interest rate) is r= 5%. If 95 days have passed since the last coupon payment, what is the accrued interest? Consider 182 days between payments. a) Calculate the flat price of the bond. b) Calculate the accrued interest. c) Calculate the invoice price.
A corporation has an outstanding bond with the following characteristics: Coupon Rate 6.0% Interest Payments Semi-Annually...
A corporation has an outstanding bond with the following characteristics: Coupon Rate 6.0% Interest Payments Semi-Annually Face Value $1,000 Years to maturity 20 Current market value $854.64 What is the yield to maturity (YTM) for this bond? **Please show how you got the answer**
1) Consider a 10-year bond trading at $1150 today. The bond has a face value of...
1) Consider a 10-year bond trading at $1150 today. The bond has a face value of $1,000, and has a coupon rate of 8%. Coupons are paid semiannually, and the next coupon payment is exactly 6 months from now. What is the bond's yield to maturity? 2)A coupon-paying bond is trading below par. How does the bond's YTM compare to its coupon rate? a. Need more info b. YTM = Coupon Rate c. YTM > Coupon Rate d. YTM <...
1. ABC, Inc. has issued a 21-year bond with a par value of $1,000, coupon rate...
1. ABC, Inc. has issued a 21-year bond with a par value of $1,000, coupon rate of 7.42%. The yield to maturity (YTM) is 3.03%. Assume semi-annual payments. What is today's price of this bond?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. 2.A 5% semiannual coupon bond maturing in 5 years with a par value of $100 is trading at $95. Calculate the yield to maturity. 3.Suppose you...
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual...
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?
Citi-group has a 7-year coupon bond with 6% coupon rate and a $1,000 par value. Coupons...
Citi-group has a 7-year coupon bond with 6% coupon rate and a $1,000 par value. Coupons are paid annually. The bond has a yield to maturity of 5.5%, compounded annually. If the yield suddenly increases to 6.5%. Which of the following statements is TRUE? The bond price will increase by $57.14 The bond price will increase by 5.29% The bond price will decrease by $53.62 The bond price will decrease by 5.43% The bond price will decrease by 5.36%
1.) Suppose a five-year, $1,000 bond with annual coupons has a price of $900.00 a...continues
1.) Suppose a five-year, $1,000 bond with annual coupons has a price of $900.00 and a yield to maturity of 6.0%. What is the bond's coupon rate?2.) The yield to maturity of a 2 year $1,000 bond with a 8.5% coupon rate and semiannual coupons is 9.1% APR, compounded semi-annually. What must its price be?
Walmart has a 8.3% coupon 20 year bond (par value = 1,000). Assume that coupon payments...
Walmart has a 8.3% coupon 20 year bond (par value = 1,000). Assume that coupon payments are semi-annual and that the current price is $980.50. What is the yield-to-maturity of this bond? Be sure to report on an annualized basis and as a raw number - i.e. if your answer is 6.5%, input as 6.5.
A two-year bond with par value $1,000 making annual coupon payments of $108 is priced at...
A two-year bond with par value $1,000 making annual coupon payments of $108 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity 10.81% b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.8%, (b) 10.8%, (c) 12.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Realized YTM Interest...
What is the yield to maturity of a bond? Par Value $1,000 Coupon Rate 6.00% Term...
What is the yield to maturity of a bond? Par Value $1,000 Coupon Rate 6.00% Term 10 years Payments per year 2 semi-annual Market Value $897.00 Payment YTM
Consider a bond with the following characteristics: Semi-annual payments, coupon rate of 8%, $1,000 par value. 6 years to maturity. Discount rate (Interest rate) is r= 5%. If 95 days have passed since the last coupon payment, what is the accrued interest? Consider 182 days between payments. a) Calculate the flat price of the bond. b) Calculate the accrued interest. c) Calculate the invoice price.
A two-year bond with par value $1,000 making annual coupon payments of $108 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity 10.81% b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.8%, (b) 10.8%, (c) 12.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Realized YTM Interest...
Most questions answered within 3 hours.
-
Please comment on the sentences.
Some types of jobs require more training than others. Some
companies...
asked 18 minutes ago -
The )G01 for the hydrolysis of phosphorarginine
reaction depicted below is –32 kJ mol-1.
Phosphoarginine ...
asked 52 minutes ago -
Cross a heterozygous blue-eyed goat with a homozygous brown-eyed
goat. Be sure to indicate which kids...
asked 1 hour ago -
Use the following information to answer the next two
questions.
Please refer to question 9-90. A...
asked 1 hour ago -
A solution containing 0.050 g of an unknown electrolyte in 2.50
g of cyclohexane was found...
asked 1 hour ago -
Question 1
a) Hydraulic conductivity of soils is an important parameter for
the design of engineering...
asked 1 hour ago -
Suppose your credit card balance is
$15,000
The minimum payment is
$313
and the annual percentage...
asked 1 hour ago -
Professor plays basketball and makes 75% of free
throws she shoots. If professor shot 5 free...
asked 1 hour ago -
Create an ArrayListReview class with one generic type to do the
following
• Creates an array...
asked 2 hours ago -
Two thermic power plants have the following marginal and total
cost of abatement of nitrogen oxide...
asked 2 hours ago -
Which of the following statements does not correctly describe an
adjustment to net income when determining...
asked 2 hours ago -
A sample of argon gas has a volume of 735 mL at a pressure of
1.20...
asked 2 hours ago