Suppose you purchase a 10-year muni bond for $8000. The face value of the bond when...
Suppose that you are considering the purchase of a coupon bond with a face value of $1,000 that matures after four years. The coupon payments are 6 percent of the face value per year. a. How much would you be willing to pay for this bond if the market interest rate (that is, the best alternative investment option) is also 6 percent? b. Suppose that you have just purchased the bond, and suddenly the market interest rate falls to 5...
you want to purchase a zero coupond bond with a face value of 100,000 which matures in 10 years. the market bond is selling for 70,000.00 if you purchase at this price what is the YTM on investment? use excel.
A. You are considering the purchase of a Pure Discount Bond with a Face Value of $10,000, which matures in ninety-four days. If you desire a return of 2.75%, how much would you bid for the bond today? (Round your answer to two decimal place, e.g. 9,274.36) B. Suppose that you decided to purchase the bond described above for the calculated price. Now assume that immediately after you purchased the bond, the rate rises by 20 Basis Points. What will...
2. You own a $1,000 face value 10-year bond with semiannual coupons that will mature in 6 years. Immediately after receiving the 8th coupon of $46, you sell the bond and purchase another newly issued $1,000 face value 10-year bond with semiannual coupons of $47.5 each. Given that the prevailing market interest rate is r(2) = 9% and the bond you originally owned is redeemable at 104% of the face value, find the redemption value of the new bond that...
You are considering the purchase of a zero Coupon Bond with a Face Value of $100,000, which matures in seven years. In the markets this bond is selling for $69,431.77. If you purchase the bond at this price what is the Yield-to-Maturity (YTM) on the investment? (The answer is a percent, round your answer to two decimal place, e.g. 4.75)
You are considering the purchase of a Pure Discount Bond with a Face Value of $1,000, which matures in seven years. In the markets this bond is selling for $771.27. If you purchase the bond at this price what is the Yield-to-Maturity (YTM) on the investment? (The answer is a percent, round your answer to two decimal places, e.g. 4.75)
You are considering the purchase of a Pure Discount Bond with a Face Value of $10,000, which matures in forty-three days. In the markets this bond is selling for $9,966.95. If you purchase the bond at this price what is the annualized Yield-to-Maturity (YTM) on the investment? (The answer is a percent, round your answer to two decimal place, e.g. 4.75)
Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 22 years for $21485. Zero Coupon bonds pay the investor the face value on the maturity date. What is the implici interest in the first year of the bond's Wo? The implicat interest in the first year of the bonds is Round to the nearest cant)
Suppose that for a price of $940 you purchase a 10-year Treasury bond that has a face value of $1,000 and a coupon rate of 3%. If you sell the bond one year later for $1,150, what was your rate of return for that one-year holding period? The rate of retum for the one-year holding period was % (Round your response to one docimal place)
You are considering the purchase of a Coupon Bond with a Face Value of $1,000, which matures in sixteen years, and pays 3.85% (annual) coupons. If the bond is trading in the market at $955.35, what is the Yield-to-Maturity (YTM) on the investment? (The answer is a percent, round your answer to two decimal places, e.g. 4.75)