A Company has liabilities that require payments of 2000 six months from now and 3000 one...
A company must pay liabilities of 3000 and 5000 at the end of years 2 and 4, respectively. The only investments available to the company are thre following two zero - coupons bonds : 1) maturity 2 years, effective annual yield 5.5%, par 1000. 2) maturity 4 years, effective annual yield 6.8%, par 100. Find the cost of exactly matching those liabilities.
A 5.5%, 5-year bond with semi-annual coupon payments and a face value of $1,000 has a market price of $1,032.19. Assume that the next coupon payment is exactly six months away. a) What is the yield-to-maturity of the bond? b) What is the effective annual rate implied by this price?
The market price of a semi-annual pay bond is $989.69. It has 24.00 years to maturity and a yield to maturity of 7.10%. What is the coupon rate? The market price of a semi-annual pay bond is $975.36. It has 14.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity? The market price of a semi-annual pay bond is $963.19. It has 14.00 years to maturity and a coupon rate...
PROBLEM 11 A/ Your company currently has $ 1000 par, 5.25 % coupon bonds with 10 years to maturity and a price of $ 1078. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal places.) B/ Suppose that General Motors Acceptance Corporation...
You buy a 6% semi-annual coupon-bond for $1122.47 with a one-year maturity. Six months later six-month rates are 5% (actually 2.5% return over a six-month period). Diagram the cash flows and calculate the actual realized return with coupon reinvested.
yield to maturity ofAS1000bond with aG96 obupon rate, semiannualaupoits andfwoven to maturity is 7.6% APR, compo price be? unded semia 48 06 the spot rates for six months, ears are 1%, 1.1%, and 13%, all quoted as semiannually in 1% 11. Assume the current Treasu e pounded APRs. What is the price of a$1000 par 4% coupon bon maturing in eer he one year, and ly years (the next coupon is exactly six months from sowi trading for $1034.74. l...
A company has bonds on the market making semi-annual payments, with 14 years to maturity, a par value of $1000, and selling for $1,382.01. At this price, the bonds yield 7.5%. What is the coupon rate?
ABC Company is issuing a new bond with a par value of $1000 and a coupon rate of 6%. The time to maturity is 28 years and the Yield to Maturity is 5.2%. If coupon payments are semi-annual, what is today's price of this bond
u discount HU Ulu Pion 3. A company has bonds on the market making annual payments, with six years to maturity, a coupon rate of 5 percent, and a par value of $1,000. What is the current bond price if the yield to maturity is 8 percent? 4 You
A 10 year bond was issued three years ago. It has a FaceValue of $1000 and makes coupon payments of $23 every six months. If the current yield to maturity is 4.6% p.a. compounding semi-annually, will this bond sell at a premium, discount or at par today?