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can u solve this using the BA II plus.thank u
1) Find the price of a...
Can u solve this, if possible using the BA II plus. Thank u 6) Find the...
Can u solve this, if possible using the BA II plus. Thank
u
6) Find the price of a $200 issue of 4% bonds with annual coupons which will be redeemed in 4 equal annual installments at the end of the 3rd through the 6th years from the issue date at $55. The bonds are bought to yield 6% off 6) Find the price of a $200 issue of 4% bonds with annual coupons which will be redeemed in 4...
QUESTION 8 (16 marks) (a) [5 marks] John purchases a $1000 face value 10-year bond with coupons of 8% per annum pai...
QUESTION 8 (16 marks) (a) [5 marks] John purchases a $1000 face value 10-year bond with coupons of 8% per annum paid half-yearly. The bond will be redeemed at C. The purchase price is $800 and the exact present value of the redemption amount C is $301.5116. Calculate the redemption amount C, and state if the bond is redeemed at par, discount or premium. (Hint: a at 3% is 14.87747 ag at 4% is 13.59033, a at 5 % is...
Can u solve this pls. if possible using the BA II plus thank u 8) On...
Can u solve this pls. if possible using the BA II plus thank
u
8) On a loan of $10,000 interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 7% effective. At the end of 10 years, the sinking fund is exactly sufficient to pay off the loan. Calculate X
5. A 30-year 1000 par value bond with coupons at 9% payable semiannually and a redemption...
5. A 30-year 1000 par value bond with coupons at 9% payable semiannually and a redemption value of 1100 is purchased for a price that results in a yield of 12% compounded semiannually. Suppose that the bond is called (i.e. redeemed) prior to the actual maturity date and results in an actual nominal yield rate convertible semiannually of 14%. Note: Assume that the bond is called immediately after a coupon payment is made. Calculate the number of years the bond...
Your portfolio contains 40% of Bond I, 20% of Bond II, 20% of Bond Ill and...
Your portfolio contains 40% of Bond I, 20% of Bond II, 20% of Bond Ill and 20% of Bond IV. Details of the four bonds are given below: $613.91 10-year zero coupon government bond, par value $1000, current price = II. 10-year zero coupon corporate bond, par value $1000, default premium= 2% III. 5 year 15 % coupon corporate bond, par value $1000, annual coupon payments, default premium 9% and YTM for similar government bond is 6% IV. 5 year...
Please answer with mathematical formulas, not an excel sheet please 3. John borrows an amount at...
Please answer with mathematical formulas, not an excel sheet
please
3. John borrows an amount at an annual interest rate of 8%. He repays all interest and principal in a lump sum at the end of ten years John uses the amount borrowed to purchase a 5-year bond with a par value of 1000 with coupons at a nominal rate of 10% payable semiannually, with the first coupon paid at the end of 6-month period from now. The bond is...
Please solve and show work! Use the quick formula to find the approximated duration from a...
Please solve and show work!
Use the quick formula to find the approximated duration from a 10 basis point change in yield, note you will need to find the change in the price up and down using the bond pricing formula. (4 digits after the decimal). Bond ABC Coupon 3.0096 Yield to maturity 2.5096 Maturity (years) Par $100.00 Price per par $101.8920 Face value 1000
Please explain how to solve these problems without using excel. A zero coupon bond has a...
Please explain how to solve these problems without using excel. A zero coupon bond has a par value of $10,000 and a current price of $7,400. If the bond has 8 years to maturity, what is its yield to maturity? A. 2.6% B. 2. 9% C. 3.2% D. 3.6% E. 3.8% A 20-year bond with an 8% coupon rate (paid semi-annually) and $1000 par value for $1080. What is the effective annual yield? A. 7.0% B. 7. 2% C. 7.4%...
(1 point) Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual...
(1 point) Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual coupons at a rate of 4.2 percent per half year. The issuer of the bond has the option to redeem it at the time of the 16th coupon for 2000 dollars, or at maturity for 2000 dollars. Find the price that will guarantee an investor a yield rate of at least 12.1 percent convertible semiannually, regardless of when the bond is redeemed.
7. A $20,000 par value bond matures on January 1, 2020. The bond pays coupons at...
7. A $20,000 par value bond matures on January 1, 2020. The bond pays coupons at the annual rate of 7%, payable semiannually (every January 1 and July 1 until maturity). The nominal annual yield to maturity is 10% compounded semiannually. Find the price of the bond on August 25, 2005. Solve this problem theoretically.
Can u solve this, if possible using the BA II plus. Thank
u
6) Find the price of a $200 issue of 4% bonds with annual coupons which will be redeemed in 4 equal annual installments at the end of the 3rd through the 6th years from the issue date at $55. The bonds are bought to yield 6% off 6) Find the price of a $200 issue of 4% bonds with annual coupons which will be redeemed in 4...
QUESTION 8 (16 marks) (a) [5 marks] John purchases a $1000 face value 10-year bond with coupons of 8% per annum paid half-yearly. The bond will be redeemed at C. The purchase price is $800 and the exact present value of the redemption amount C is $301.5116. Calculate the redemption amount C, and state if the bond is redeemed at par, discount or premium. (Hint: a at 3% is 14.87747 ag at 4% is 13.59033, a at 5 % is...
Can u solve this pls. if possible using the BA II plus thank
u
8) On a loan of $10,000 interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 7% effective. At the end of 10 years, the sinking fund is exactly sufficient to pay off the loan. Calculate X
5. A 30-year 1000 par value bond with coupons at 9% payable semiannually and a redemption value of 1100 is purchased for a price that results in a yield of 12% compounded semiannually. Suppose that the bond is called (i.e. redeemed) prior to the actual maturity date and results in an actual nominal yield rate convertible semiannually of 14%. Note: Assume that the bond is called immediately after a coupon payment is made. Calculate the number of years the bond...
Your portfolio contains 40% of Bond I, 20% of Bond II, 20% of Bond Ill and 20% of Bond IV. Details of the four bonds are given below: $613.91 10-year zero coupon government bond, par value $1000, current price = II. 10-year zero coupon corporate bond, par value $1000, default premium= 2% III. 5 year 15 % coupon corporate bond, par value $1000, annual coupon payments, default premium 9% and YTM for similar government bond is 6% IV. 5 year...
Please answer with mathematical formulas, not an excel sheet
please
3. John borrows an amount at an annual interest rate of 8%. He repays all interest and principal in a lump sum at the end of ten years John uses the amount borrowed to purchase a 5-year bond with a par value of 1000 with coupons at a nominal rate of 10% payable semiannually, with the first coupon paid at the end of 6-month period from now. The bond is...
Please solve and show work!
Use the quick formula to find the approximated duration from a 10 basis point change in yield, note you will need to find the change in the price up and down using the bond pricing formula. (4 digits after the decimal). Bond ABC Coupon 3.0096 Yield to maturity 2.5096 Maturity (years) Par $100.00 Price per par $101.8920 Face value 1000
(1 point) Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual coupons at a rate of 4.2 percent per half year. The issuer of the bond has the option to redeem it at the time of the 16th coupon for 2000 dollars, or at maturity for 2000 dollars. Find the price that will guarantee an investor a yield rate of at least 12.1 percent convertible semiannually, regardless of when the bond is redeemed.
7. A $20,000 par value bond matures on January 1, 2020. The bond pays coupons at the annual rate of 7%, payable semiannually (every January 1 and July 1 until maturity). The nominal annual yield to maturity is 10% compounded semiannually. Find the price of the bond on August 25, 2005. Solve this problem theoretically.
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