Can someone help me with this problem? I attached an example to help. Question 5 1...
Can someone please help me with this problem? Attached is an example to help. Thanks in advanced! Question 2 1 pts 2. A 100 par value 15 year bond provides 10% semiannual coupons. The yield rate is 8% convertible semiannually. What is the flat price (i.e., the money that actually changes hands if the bond is sold, ignoring expenses) 9.3 years after issue at the same yield rate? (7.d-e #06] A) 111.99 B) 109.75 C) 110.31 D) 110.87 E) 111.43...
Consider two corporate bonds. Both bonds pay annual interest and have face values of $1,000. Bond A matures in 10 years, has 5% annual coupons and currently has 5 % YTM. Bond B matures in 15 years, has 5 % annual coupons Jand currently has 5% YTM. If the market rate of interest jumps unexpected ly to 5.5%, what will happen to the prices of the bonds? The price of both bonds will decline by the same dollar amount. The...
Question 5 (4 points) I have two bonds in my portfolio. Bond A pays me an annual coupon of $90 with a face (maturity) value of $1,000. Bond A matures in 4 years. I also have Bond B, a zero coupon bond that matures on the same day that Bond A matures on. This is the day I plan to retire. Which of the following statements is correct? My required rate of return is 8%. The duration of both bonds...
i think i should use the same n to calculate the yield but it is too hard to do the calculation (1 point) An investor purchases two bonds with the following properties Bond 1: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 7.2% annual and was purchased for $1177.69 Bond 2: Has a face value $1000 and is redeemable at par. Pays coupons annually at a rate of 5.9% annual and...
can anyone help me to solve these q?please!! Question 9 Southern Island's bonds have a face value of $1,000, pay coupon annually with an annual coupon of $70 and mature in 15 years. What is the current price of the bond if the yield to maturity is 6.2 percent? Question 10 Trading Game Incorporated has $1,000 face value bonds outstanding with a market price of $1,082.27. The bonds pay coupon semi-annually, mature in 10 years, and have a yield to...
(1 point) A 10 year $11 000 par-valued bond pays monthly coupons. If the yield rate is y 12-9% and the purchase price is $7381.84, what is the coupon rate c12? Answer: (1 point) Two bonds, each with a face value of $13000, are redeemable at par in t-years and priced to yield y4-8%. Bond 1 of P? has a coupon rate c4-11.8% and sells for $15628.24. Bond 2 has coupon rate c-5% and sells for S R What is...
a. Springfield Nuclear Energy Inc. bonds are currently trading at $1,775.16. The bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 25 years. What is the yield to maturity of the bonds? b. Consider an annual coupon bond with a face value of $100,12 years to maturity, and a price of $76. The coupon rate on the bond is 6%. If you can reinvest coupons at a rate of...
a. Springfield Nuclear Energy Inc. bonds are currently trading at $1,775.16. The bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 25 years. What is the yield to maturity of the bonds? b. Consider an annual coupon bond with a face value of $100,12 years to maturity, and a price of $76. The coupon rate on the bond is 6%. If you can reinvest coupons at a rate of...
Question 1 Hope bonds have a coupon rate of 7% and mature in 7 years. Assuming semi-annual coupons with face value of $100. What is the value of this bond? Similar bonds yield 6% a. The value of this bond is $105.65 b. The value of this bond is $106.58. C. The value of this bond is $94.5-4 d. The value of this bond is $39.54.
1)A Ford Motor Co. coupon bond has a coupon rate of 7%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 40 years from tomorrow. The yield on the bond issue is 6.15%. At what price should this bond trade today, assuming a face value of $1,000? The price of the bond today should be $ 2) If the nominal rate of interest is 13.07% and the real rate of interest is 7.09 % what...