Given the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds...
Given the following data on bond yields: This Year Last Year Yield on top-rated corporate bonds 9.6 % 10.1 % Yield on intermediate-grade corporate bonds 12.1 11.6 a. Calculate the confidence index this year and last year. (Round your answers to 4 decimal places.) Confidence Index This year Last year b. Is the confidence index increasing or decreasing? Increasing Decreasing
Homework Answers
|
A- |
this Year |
last Year |
|
|
Yield on Top rated corporate bonds |
9.6 |
10.1 |
|
|
Yield on Intermediate grade corporate bonds |
12.1 |
11.6 |
|
|
confidence index =Yield on top rated corporate bonds/yield on intermediate grade corporate bonds |
9.6/12.1 |
10.1/11.6 |
|
|
confidence index =Yield on top rated corporate bonds/yield on intermediate grade corporate bonds |
0.7934 |
0.8707 |
|
|
B- |
decreasing |
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Given the following data on bond yields: This Year Last Year
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Using the following data on bond yields: This Year Last Year 4.8% 7.8% Yield on top-rated...
Using the following data on bond yields: This Year Last Year 4.8% 7.8% Yield on top-rated corporate bonds Yield on intermediate-grade corporate bonds 6.8% 9.8% a. Calculate the confidence index this year and last year. (Round your answers to 4 decimal places.) Confidence Index This year Last year b. Is the confidence index increasing or decreasing? O Increasing O Decreasing
Suppose Baa-rated bonds currently yield 7.0 % , while Aa - rated bonds yield 5.0 %. Now suppose that due to an incr...
Suppose Baa-rated bonds currently yield 7.0 % , while Aa - rated bonds yield 5.0 %. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.2 % . What would happen to the confidence index? (Round your answers to 4 decimal places.) Confidence index from to 32 nces
Listed here are data that pertain to the corporate bond market (Note: Each "period' below covers...
Listed here are data that pertain to the corporate bond market (Note: Each "period' below covers a span of 6 months.) a. Compute the confidence index for each of the periods listed above b. Assume the latest confidence index (for period 0 in effect) amounts to 86.83%, while the yield spread between high- and average-grade corporate bonds is 05 basis points. Based on your calculations, what's happening to bond yield spreads and the contidence index over the period of time...
Suppose Baa-rated bonds currently yield 6.2%, while Aa-rated bonds yield 4.2%. Now suppose that due to...
Suppose Baa-rated bonds currently yield 6.2%, while Aa-rated bonds yield 4.2%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.0%. What would happen to the confidence index? (Round your answers to 4 decimal places.)
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Saved Problem 9-17 Suppose Baa-rated bonds currently yield 8.0%, while Aa-rated bonds yield 6.0%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.5%. What would happen to the confidence index? (Round your answers to 4 decimal places.) Confidence index from
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Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 5%. Suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1% a. Calculate the new confidence index? (Round your answer to 3 decimal places.) Confidence index b. Would this be interpreted as bullish or bearish by a technical analyst? Bullish Bearish
A BBB-rated corporate bond has a yield to maturity of 10.8 %. A U.S. treasury security...
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A BBB-rated corporate bond has a yield to maturity of 7.9%. AU.S. Treasury security has a...
A BBB-rated corporate bond has a yield to maturity of 7.9%. AU.S. Treasury security has a yield to maturity of 6.0%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 6.4% and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the Treasury bond? b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate...
Listed here, . are data that pertain to the corporate bond market. (Note: Each "period" below...
Listed here, . are data that pertain to the corporate bond market. (Note: Each "period" below covers a span of 6 months.) a. Compute the confidence index for each of the four periods listed above. b. Assume the latest confidence index (for period 0, in effect) amounts to 86.83%, while the yield spread between high- and average-grade corporate bonds is 85 basis points. Based on your calculations, what's happening to bond yield spreads and the confidence index over the period...
A BBB-rated corporate bond has a yield to maturity of 11.8%. An Australian treasury security has...
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Suppose Baa-rated bonds currently yield 7.0 % , while Aa - rated bonds yield 5.0 %. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.2 % . What would happen to the confidence index? (Round your answers to 4 decimal places.) Confidence index from to 32 nces
Listed here are data that pertain to the corporate bond market (Note: Each "period' below covers a span of 6 months.) a. Compute the confidence index for each of the periods listed above b. Assume the latest confidence index (for period 0 in effect) amounts to 86.83%, while the yield spread between high- and average-grade corporate bonds is 05 basis points. Based on your calculations, what's happening to bond yield spreads and the contidence index over the period of time...
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