*Please show all work and explain steps* You have a portfolio of 2 shares of Bond...
*Please show all work and explain steps*
You have a portfolio of 2 shares of Bond A and 1 share of Bond B
• Bond A: 5-year zero coupon bond, $100 par value.
• Bond B: 10-year bond with annual coupon at 3%, $100 par value redeemable at par.
Both bonds have annual yield at 4%.
Calculate present value of your portfolio.
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*Please show all work and explain steps*
You have a portfolio of 2 shares of Bond...
Please explain/show work, do not use excel (hand written answer), full steps 4. The following table...
Please explain/show work, do not use excel (hand written
answer), full steps
4. The following table gives prices of bonds Bond principal Annual coupon Bond Price 100 100 100 100 Time to maturity years 1.00 2.00 3.00 4.00 0.0 6.2 7.0 8.0 98 95 101 104 a) Calculate zero rates for all maturities b) Calculate forward rates
Your portfolio contains 40% of Bond I, 20% of Bond II, 20% of Bond Ill and...
Your portfolio contains 40% of Bond I, 20% of Bond II, 20% of Bond Ill and 20% of Bond IV. Details of the four bonds are given below: $613.91 10-year zero coupon government bond, par value $1000, current price = II. 10-year zero coupon corporate bond, par value $1000, default premium= 2% III. 5 year 15 % coupon corporate bond, par value $1000, annual coupon payments, default premium 9% and YTM for similar government bond is 6% IV. 5 year...
Please post with mathematical formulas, not an excel sheet 5. You have decided to invest in two bonds. Bond X is an n-ye...
Please post with mathematical formulas, not an excel
sheet
5. You have decided to invest in two bonds. Bond X is an n-year bond with semiannual coupons, while bond Y is zero-coupon bond, which is re- deemable in years. The desired yield rate is the same for both bonds. You also have the following information: Bond X • Par value is 1000. • The ratio of the semi-annual bond rate to the desired semi-annual yield rate, that is is 1.03125....
Please show all work. FINA Inc. considers a project with the following information: Initial Outlay: 1,500...
Please show all work. FINA Inc. considers a project with the following information: Initial Outlay: 1,500 After-tax cash flows: Year 1: -$100 Year 2: $1000 Year 3: $700 FINA’s assets are $500 million, financed through bank loans, bonds, preferred stocks, and common stocks. The amounts are as follows: Bank loans: $ 100 million borrowed at 10% Bonds: $180 million, paying 9% coupon with quarterly payments, and maturity of 5 years. FINA sold its $1,000 par-value bonds for $1,070 and had...
please show all work :) If an investor is expected to receive 650.00 a year every...
please show all work :)
If an investor is expected to receive 650.00 a year every year for the next six years. What is the present value of this annuity using a discount rate of 7.25% 3,074.48 3,064.20 3,059.25 3,062.22 30 A bond with a $10,000 par value has a 6.5% annual coupon rate. It will mature in 6 years, with annual coupon payments. Present annual yields on similar bonds are 7.25% What should the current price bez 9,645.26 9,873.22...
Please show all work, you to avoid using excel Chapter 10 Exercise Problem McGee Computing Service...
Please show all work, you to avoid using excel
Chapter 10 Exercise Problem McGee Computing Service is considering an average-risk project that will cost $9 and is expected to generate annual after-tax cash inflow in the amount of $19,000 for the next 12 years. The firm has 300,000 shares of common stock outstanding at a price of $40 a share, 10,000 shares of preferred stock outstanding at a price of $80 a share, and 2,000 bonds outstanding at a price...
Show Work Please 4. (35 points) A bond with a yield to maturity of 3% and...
Show Work Please
4. (35 points) A bond with a yield to maturity of 3% and a coupon rate of 3% has 3 years re- maining until maturity. Calculate the duration and the modified duration for this bond assuming annual interest payments and a par value of $1,000. Why is the duration of this bond higher than the 3-year 10% coupon bond yielding 10% we looked at in class that had a duration of 2.7 years? If the required market...
Show calculations, and write clearly. Please submit via Blackboard. l. (15 points) i 0- year Treasury...
Show calculations, and write clearly. Please submit via Blackboard. l. (15 points) i 0- year Treasury bonds have a coupon rate of 2.2 % and par value of S1000. The selling price is $ 970. IA. Calculate and explain how much in dollars you will receive in cash on an annual basis. IB. Calculate total dollar income during the 10 years of investing and holding of this bond. 1C. Calculate your final wealth in dollars. 2. (10 points) 10-year Treasury...
Consider the following zero coupon bonds each of which are redeemable at par and have a...
Consider the following zero coupon bonds each of which are redeemable at par and have a yield rate of 3.5 % compounded continuously. Bond Face Value (in dollars) 4000 10000 5000 1000 Maturity (in years) 10 15 25 30 (a) Determine the purchase price of each bond: Bond Price (in dollars to closest cent) NOTE: Do not include the $ sign. (b) Determine the present value of the portfolio of bonds. NOTE: Do not include the $ sign. (b) Determine...
2. A bond matures in 7 years, has a par value of $1,000, and an annual...
2. A bond matures in 7 years, has a par value of $1,000, and an annual coupon payment of $70. Investors require a return of 8.5%. Calculate the price of the bond. [8 points] 3. A bond is priced at $1,280, has a par value of $1,000, 15 years to maturity, and a $135 annual coupon. The bond is callable in 5 years at $1,050. Calculate the yield to call. [8 points] 4. If 10-year Treasury bonds yield 6.2%, 10-year...
Please explain/show work, do not use excel (hand written
answer), full steps
4. The following table gives prices of bonds Bond principal Annual coupon Bond Price 100 100 100 100 Time to maturity years 1.00 2.00 3.00 4.00 0.0 6.2 7.0 8.0 98 95 101 104 a) Calculate zero rates for all maturities b) Calculate forward rates
Your portfolio contains 40% of Bond I, 20% of Bond II, 20% of Bond Ill and 20% of Bond IV. Details of the four bonds are given below: $613.91 10-year zero coupon government bond, par value $1000, current price = II. 10-year zero coupon corporate bond, par value $1000, default premium= 2% III. 5 year 15 % coupon corporate bond, par value $1000, annual coupon payments, default premium 9% and YTM for similar government bond is 6% IV. 5 year...
Please post with mathematical formulas, not an excel
sheet
5. You have decided to invest in two bonds. Bond X is an n-year bond with semiannual coupons, while bond Y is zero-coupon bond, which is re- deemable in years. The desired yield rate is the same for both bonds. You also have the following information: Bond X • Par value is 1000. • The ratio of the semi-annual bond rate to the desired semi-annual yield rate, that is is 1.03125....
please show all work :)
If an investor is expected to receive 650.00 a year every year for the next six years. What is the present value of this annuity using a discount rate of 7.25% 3,074.48 3,064.20 3,059.25 3,062.22 30 A bond with a $10,000 par value has a 6.5% annual coupon rate. It will mature in 6 years, with annual coupon payments. Present annual yields on similar bonds are 7.25% What should the current price bez 9,645.26 9,873.22...
Please show all work, you to avoid using excel
Chapter 10 Exercise Problem McGee Computing Service is considering an average-risk project that will cost $9 and is expected to generate annual after-tax cash inflow in the amount of $19,000 for the next 12 years. The firm has 300,000 shares of common stock outstanding at a price of $40 a share, 10,000 shares of preferred stock outstanding at a price of $80 a share, and 2,000 bonds outstanding at a price...
Show Work Please
4. (35 points) A bond with a yield to maturity of 3% and a coupon rate of 3% has 3 years re- maining until maturity. Calculate the duration and the modified duration for this bond assuming annual interest payments and a par value of $1,000. Why is the duration of this bond higher than the 3-year 10% coupon bond yielding 10% we looked at in class that had a duration of 2.7 years? If the required market...
Show calculations, and write clearly. Please submit via Blackboard. l. (15 points) i 0- year Treasury bonds have a coupon rate of 2.2 % and par value of S1000. The selling price is $ 970. IA. Calculate and explain how much in dollars you will receive in cash on an annual basis. IB. Calculate total dollar income during the 10 years of investing and holding of this bond. 1C. Calculate your final wealth in dollars. 2. (10 points) 10-year Treasury...
Consider the following zero coupon bonds each of which are redeemable at par and have a yield rate of 3.5 % compounded continuously. Bond Face Value (in dollars) 4000 10000 5000 1000 Maturity (in years) 10 15 25 30 (a) Determine the purchase price of each bond: Bond Price (in dollars to closest cent) NOTE: Do not include the $ sign. (b) Determine the present value of the portfolio of bonds. NOTE: Do not include the $ sign. (b) Determine...
2. A bond matures in 7 years, has a par value of $1,000, and an annual coupon payment of $70. Investors require a return of 8.5%. Calculate the price of the bond. [8 points] 3. A bond is priced at $1,280, has a par value of $1,000, 15 years to maturity, and a $135 annual coupon. The bond is callable in 5 years at $1,050. Calculate the yield to call. [8 points] 4. If 10-year Treasury bonds yield 6.2%, 10-year...
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