Consider a 5-year bond with a face value of 100 USD/bond that pays coupons every six...
Consider a 5-year bond with a face value of 100 USD/bond that pays coupons every six months. It has a yield to maturity of 4.0400% and an annual coupon rate of 4.0000%. What is the bond’s price if there are no arbitrage opportunities? (Input your answer with 4 decimals)
Homework Answers
rate positively ..
| Put in calculator | |||
| FV | 100 | ||
| PMT | 100*4%/2 | 2.0 | |
| I | 4.04%/2 | 2.020% | |
| N | 5*2 | 10 | |
| Compute PV | ($99.8205) | ||
| Ans = | $99.8205 | ||
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Consider a 5-year bond with a face value of 100 USD/bond that
pays coupons every six...
12 Consider a 5-year bond with a face value of 100 USD/bond that pays coupons ev-...
12 Consider a 5-year bond with a face value of 100 USD/bond that pays coupons ev- ery six months. It has a yield to maturity of 4.0400% and an annual coupon rate of 4.0000%. What is the bond's price if there are no arbitrage opportunities? (Input your answer with 4 decimals)
Question 12 6 pts Consider a 4-year bond with a face value of 100 USD/bond that...
Question 12 6 pts Consider a 4-year bond with a face value of 100 USD/bond that pays coupons every six months. It has a yield to maturity of 3.0225% and an annual coupon rate of 3.0000%. What is the bond's price if there are no arbitrage opportunities? (Input your answer with 4 decimals) --
Please solve and show work fully for a rating. Thank you. 129 12 65 Consider a...
Please solve and show work fully for a rating. Thank you.
129 12 65 Consider a 5-year bond with a face value of 100 USD/bond that pays coupons ev- ery six months. It has a yield to maturity of 4.0400% and an annual coupon rate of 4.0000%. What is the bond's price if there are no arbitrage opportunities? (Input your answer with 4 decimals)
Consider a 3-year 11% coupon bond with a face value of $100. Suppose that the yield...
Consider a 3-year 11% coupon bond with a face value of $100. Suppose that the yield on the bond is 12% per annum with continuous compounding. The bond pays coupon every 6 months. Use the modified duration to calculate the effect on the bond’s price for a 0.1% increase in its yield. A $90.12 B $96.42 C $94.73 D $98.32
Consider a 10-year, $100,000 Face Value bond with a 5% coupon rate and annual coupons. If...
Consider a 10-year, $100,000 Face Value bond with a 5% coupon rate and annual coupons. If the yield to maturity is constant at 4%, what is the bond’sfair market price Answer given in the answer key is: 69,227.16 however I keep getting 108,1108.8958
Consider a 3-year risk-free bond, which pays annual coupons. The coupon rate is 3.5% and the...
Consider a 3-year risk-free bond, which pays annual coupons. The coupon rate is 3.5% and the face value is 500. The bond is issued at time t=0, pays coupons at time t=1,2,3 and face value at time t=3. You purchase the bond at time t=0. While holding the bond, you do not reinvest the coupon payments. What is the future value, at time t=2, of the coupon payments you received if you held the bond from t=0 to maturity? What...
A 30-year bond was issued 21 years ago. The bond's face value is $1000 and it pays semi-annual coupons. The coupon rate...
A 30-year bond was issued 21 years ago. The bond's face value is $1000 and it pays semi-annual coupons. The coupon rate is 7.6% and the yield to maturity is 6.4%. What is the bond's price assuming no default? [Provide your answer rounded to two digits.]
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 <...
Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual coupons at...
Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual coupons at a rate of 5.2 percent per half year. The issuer of the bond has the option to redeem it at the time of the 16th coupon for 2100 dollars, or at maturity for 2000 dollars. Find the price that will guarantee an investor a yield rate of at least 12.3 percent convertible semiannually, regardless of when the bond is redeemed.
Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual coupons at...
Suppose that a 9-year bond with a face value of 1000 dollars pays semiannual coupons at a rate of 5.5 percent per half year. The issuer of the bond has the option to redeem it at the time of the 16th coupon for 2100 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.
12 Consider a 5-year bond with a face value of 100 USD/bond that pays coupons ev- ery six months. It has a yield to maturity of 4.0400% and an annual coupon rate of 4.0000%. What is the bond's price if there are no arbitrage opportunities? (Input your answer with 4 decimals)
Question 12 6 pts Consider a 4-year bond with a face value of 100 USD/bond that pays coupons every six months. It has a yield to maturity of 3.0225% and an annual coupon rate of 3.0000%. What is the bond's price if there are no arbitrage opportunities? (Input your answer with 4 decimals) --
Please solve and show work fully for a rating. Thank you.
129 12 65 Consider a 5-year bond with a face value of 100 USD/bond that pays coupons ev- ery six months. It has a yield to maturity of 4.0400% and an annual coupon rate of 4.0000%. What is the bond's price if there are no arbitrage opportunities? (Input your answer with 4 decimals)
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