Present Value of Bond
Consider a 30-year maturity bond with an 8% coupon with a $1,000 face value. Suppose the yield curve is a flat 8% for all maturities. What is the present value of this bond?
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pls help 4. Consider a bond of face value $1,000 with an annual coupon of 8.0%...
pls help
4. Consider a bond of face value $1,000 with an annual coupon of 8.0% and 10 years to maturity and a present price of $877.11. Assume the yield curve is flat at 10%. a. Calculate the duration and convexity for this bond. b. Suppose your portfolio consists of this bond only and you want to immunize your interest risks. And suppose you can only buy or sell 1 zero-coupon bond. What should be the maturity of this zero-coupon...
1) Consider a 10-year bond trading at $1150 today. The bond has a face value of...
1) Consider a 10-year bond trading at $1150 today. The bond has a face value of $1,000, and has a coupon rate of 8%. Coupons are paid semiannually, and the next coupon payment is exactly 6 months from now. What is the bond's yield to maturity? 2)A coupon-paying bond is trading below par. How does the bond's YTM compare to its coupon rate? a. Need more info b. YTM = Coupon Rate c. YTM > Coupon Rate d. YTM <...
Saved Problem 3-6 Bond prices and yields A 23-year U.S. Treasury bond with a face value...
Saved Problem 3-6 Bond prices and yields A 23-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity is 5.0% (a six-month discount rate of 5.0/2 = 2.5%). 25 a. What is the present value of the bond? b. If the yield to maturity changes to 1%, what will be the present value? c. If the yield to maturity changes to 8%, what...
A 28-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25%...
A 28-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity is 5.0% (a six-month discount rate of 5.0/2 = 2.5%). (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. What is the present value of the bond? Present value $ b. If the yield to maturity changes to 1%, what will be the present value? Present value $...
A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5%...
A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5% (2.75% of face value every six months). The reported yield to maturity is 5.2% (a six-month discount rate of 5.2/2 = 2.6%). (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. What is the present value of the bond? Present value $ b. If the yield to maturity changes to 1%, what will be the present value? Present value $...
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual...
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?
thank you. INTT 204 ASSIGNMENT Q1) What is the price of an annual coupon bond with...
thank you.
INTT 204 ASSIGNMENT Q1) What is the price of an annual coupon bond with a coupon rate of 10%, $1,000 face value, and 50 years to maturity, if its yield to maturity is 12%? ($833.91) I Q2) Company X is expected to pay an end-of-year dividend of $10 a share. After the dividend its stock is expected to sell at $110. If the market capitalization rate is 10%, what is the current stock price? (Ans. $109.09) Q3) Consider...
Consider the following annual coupon bond with a face value of $1,000, a price of $922.69,...
Consider the following annual coupon bond with a face value of $1,000, a price of $922.69, a coupon rate of 5.9% and a maturity of 30 years. Right after you purchase the bond, market interest rates change to 12% and remain constant. What would be your realized yield to maturity if you sold the bond after 8 years?
12- You are interested in purchasing a 30-year, semi-annual bond with a current market price of...
12- You are interested in purchasing a 30-year, semi-annual bond with a current market price of $1015.75. If the yield to maturity is 6.85% and the face value is $1,000, what must the coupon rate be on the bond? (6.97%) 13- Suppose a 7.75% coupon bond with 15 years to maturity and a face value of $1,000 presently has a yield to maturity of 7.25%. Assuming annual interest payments, what is the price of the bond? ($1,044.83)
Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for...
Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for $1,100. (Assume that the bond has just been issued.) 20 Basic Input Data: Years to maturity: Periods per year: Periods to maturity: Coupon rate: Par value: Periodic payment: Current price 8% $1,000 $1,100 c. What would be the price of a zero coupon bond if the face value of the bond is $1,000 in 3 years and if the yield to maturity of similary...
pls help
4. Consider a bond of face value $1,000 with an annual coupon of 8.0% and 10 years to maturity and a present price of $877.11. Assume the yield curve is flat at 10%. a. Calculate the duration and convexity for this bond. b. Suppose your portfolio consists of this bond only and you want to immunize your interest risks. And suppose you can only buy or sell 1 zero-coupon bond. What should be the maturity of this zero-coupon...
Saved Problem 3-6 Bond prices and yields A 23-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity is 5.0% (a six-month discount rate of 5.0/2 = 2.5%). 25 a. What is the present value of the bond? b. If the yield to maturity changes to 1%, what will be the present value? c. If the yield to maturity changes to 8%, what...
thank you.
INTT 204 ASSIGNMENT Q1) What is the price of an annual coupon bond with a coupon rate of 10%, $1,000 face value, and 50 years to maturity, if its yield to maturity is 12%? ($833.91) I Q2) Company X is expected to pay an end-of-year dividend of $10 a share. After the dividend its stock is expected to sell at $110. If the market capitalization rate is 10%, what is the current stock price? (Ans. $109.09) Q3) Consider...
Consider the following annual coupon bond with a face value of $1,000, a price of $922.69, a coupon rate of 5.9% and a maturity of 30 years. Right after you purchase the bond, market interest rates change to 12% and remain constant. What would be your realized yield to maturity if you sold the bond after 8 years?
12- You are interested in purchasing a 30-year, semi-annual bond with a current market price of $1015.75. If the yield to maturity is 6.85% and the face value is $1,000, what must the coupon rate be on the bond? (6.97%) 13- Suppose a 7.75% coupon bond with 15 years to maturity and a face value of $1,000 presently has a yield to maturity of 7.25%. Assuming annual interest payments, what is the price of the bond? ($1,044.83)
Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for $1,100. (Assume that the bond has just been issued.) 20 Basic Input Data: Years to maturity: Periods per year: Periods to maturity: Coupon rate: Par value: Periodic payment: Current price 8% $1,000 $1,100 c. What would be the price of a zero coupon bond if the face value of the bond is $1,000 in 3 years and if the yield to maturity of similary...
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