You invest in a 5-Year T-Note with a face value of $4,488 and a coupon rate...
You have purchased a $1,000,000 million Face or Par Value 5-year T-note. This 5-year T-note pays a 2.5% coupon (paid semi-annually) and has a current market price equal to 94.50% of Face or Par value ($945,000). Why would the price of this 5-year T-note decline? What is the current Yield to Maturity (YTM) of this 5-year T-note?
The 10-year Coupon Bond has a face value of $1,000, the annual coupon rate is 5 percent (out of its face value), the yield to maturity is 10 percent. (2.a) show me the cash flows of this coupon bond, you can use words or a timeline graph you created. (2.b) compute the price (present value) of this bond (2.c) suppose the yield to maturity increases to 20 percent after one year, computes the new price. (remember that as time passed...
You buy a 20-year bond with a coupon rate of 7.6% that has a yield to maturity of 9.7%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 10.7%. What is your return over the 6 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Rate of return
You buy a 20-year bond with a coupon rate of 7.6% that has a yield to maturity of 9.7%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 10.7%. What is your return over the 6 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Rate of return = %
Suppose the Treasury department issues a 10 year T-Note. The T-Note has a face value equal to $1,000.00 and a coupon 2) rate equal to 3.5%. a) Caleulate the annual coupon payment b) Calculate the total amount of interest the government will have to pay over the life of the T-Note.
You have purchased a bond with 6 year maturity, 6% coupon rate, $1000 face value, and semi-annual payments for $975.48. Two years later, when the YTM=7.2%, you sell the bond. What was your average annual realized yield on the bond, if you were able to reinvest coupons at 6.5%? [Provide your answer in percent rounded to two decimals, omitting the % sign.]
You have purchased a bond with 23 year maturity, 2% coupon rate, $1000 face value, and semi-annual payments for $834.72 Two years later, when the YTM=2.5%, you sell the bond. What was your average annual realized yield on the bond, if you were able to reinvest coupons at 3%? [Provide your answer in percent rounded to two decimals, omitting the % sign.]
1-(a) Consider a bond with a $1,000 face value and a 10 percent coupon rate with semiannual payments matures in 15 years. Determine the value of the bond to a friend of yours with a required rate of return of 13% (2 points) 1-(b) A zero coupon bond with a risk similar to part (a), is $1,000 and matures in 15 years. Your friend asks you which bond she should invest in, the zero coupon selling for $120. The bond...
A 2-year zero coupon bond with a $1,000 face value has an interest rate of 3.5% per year. What would be the change in the bonds value if the 2-year interest rate were to rise by 35 basis points. (Remember: your answer needs to have a negative sign if the number is negative and should not quote in percent or basis points.)
2. You own a 20-year, $1000 face value bond paying 8% coupon annually. What should be the market price of the bond so that its Yield to Maturity is exactly 10%? You also own a 30-year, $1000 face value bond paying 9% coupon annually. If your required rate of return is 9%, what should be the value of the bond?