Use the bond term's below to answer the question
Maturity 8 years
Coupon Rate 5%
Face value $1,000
Annual Coupons
YTM 6%
Assuming the YTM remains constant throughout the bond's life, what
is the bond's current yield between periods 4 and 5 ?
5.08% |
5.18% |
5.33% |
4.93% |
You plan on going to law school for 3 years starting in 4
years.
The cost of tuition for the first year will be $40,000
The cost of tuition for the second year will be $41,600
The cost of tuition for the third year will be $43,264
How much would you have to invest today in an account that earns
3.00% APR compounded annually) to exactly pay for your tuition?
$104,521 |
$101,477 |
$110,887 |
$107,256 |
$107,657 |
Use the bond term's below to answer the question
Maturity 6 years
Coupon Rate 3%
Face value $1,000
Annual Coupons
When you buy the bond the interest rate is 5%
Right after you buy the bond, the interest rate changes from 5.00%
to 4.50% and remains there.
What is the price effect in year 5 ?
$4.27 |
$4.91 |
$5.16 |
$3.88 |
$4.69 |
Use the bond term's below to answer the question Maturity 8 years Coupon Rate 5% Face...
Use the bond term's below to answer the question Maturity 7 years Coupon Rate 4% Face value $1,000 Annual Coupons YTM 5% Assuming the YTM remains constant throughout the bond's life, what is the bond's current yield between periods 2 and 3 ? 4.18% 4.10% 4.31% 3.98%
Use the bond term's below to answer the question Maturity 12 years Coupon Rate 5% Face value $1,000 Annual Coupons Market Interest Rate 7% Assuming the YTM remains constant throughout the bond's life, what is percentage capital gains/loss between periods 3 and 4 ? A. 1.20% B. 1.29% C. 1.31% D. 1.25%
Please help. Use the bond term's below to answer the question Maturity 6 years Coupon Rate 3% Face value $1,000 Annual Coupons When you buy the bond the interest rate is 4% Right after you buy the bond, the interest rate changes from 4.00% to 2.75% and remains there. What is the price effect in year 5 ?
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 <...
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and two years to maturity is 8.9% APR, compounded semiannually. What is its price? The price of the bond is $ . (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $901.23 and a yield to maturity of 5.9%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
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?
1. Assume you buy a bond with the following features Bond maturity = 6 Coupon Rate = 5.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 5.00% Immediately after you buy the bond the interest rate changes to 5.50% What is the "price risk" effect in year 4 ? Group of answer choices -$9.23 -$8.95 $8.95 -$9.51 $9.51 $9.23 2. Assume you buy a bond with the following features Bond maturity =...
An 8% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 8.2296%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places. Bond's price: $ YTM:
Question 5 Homework. Unanswered A bond with a $1,000 face value has a 6% annual coupon rate. The bond matures in 19 years. The current YTM on the bond is 4.5%. If this bonds' YTM were to increase to 5.9%, what would be the resulting price change in dollar terms? Round to the nearest cent. [Hint: 1) If the price drops, the change is a negative number. 2) Calculate the precise impact of a yield change on the bond's price...
Consider an annual coupon bond with a face value of $100, 5 years to maturity, and a price of $79. The coupon rate on the bond is 6%. If you can reinvest coupons at a rate of 1% per annum, then how much money do you have if you hold the bond to maturity? Total proceeds from holding the bond to maturity are $_____