Consider a bond that has a current value of 107.62, a coupon of 8% (paid semi-annually), and 2 years to maturity. If the spot rate curve is the following:
Maturity | Spot rate |
0.5 | 0.6% |
1.0 | 1.4% |
1.5 | 2.7% |
2.0 | 4% |
the arbitrage-free value of the bond is _____________.
Consider a bond that has a current value of 107.62, a coupon of 8% (paid semi-annually),...
Consider a bond that has a current value of 107.62, a coupon of 8% (paid semi-annually), and 2 years to maturity. If the spot rate curve is the following: Maturity Spot rate 0.5 0.6% 1.0 1.4% 1.5 2.7% 2.0 4% the arbitrage-free value of the bond is _____________.
Consider a bond that has a current value of 107.62, a coupon of 8% (paid semi-annually), and 2 years to maturity. If the investor can reinvest the coupons at 8.5%, the horizon yield is _____________.
The duration of a par-value bond with a coupon rate of 8% (paid semi-annually) and a remaining time to maturity of 5 years is closest to a. 5 years b. 4.6 years c. 4.2 years d. 4.0 years e. 3.7 years
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 <...
A $1,000 bond has a coupon rate of 9% that is paid semi-annually, and has 5 years until it matures. The current yield to maturity is 7% a. What is the price of the bond? ___________ b. What is the amount of the annual interest paid to the bondholder? ___________ c. Is this a discount bond or a premium bond? ______________________
(4 points) Consider a 2-year mortgage loan that is paid back semi-annually. The semi-annually compounded mortgage rate is 5%. The principal is $1000. a) (1 point) Calculate the semi-annual coupon. b) (3 points) How much of the coupon is interest payment and how much is principal repayment in 0.5 year, in 1 year, in 1.5 years, and in 2 years? Also calculate the (post- coupon) notional value of the outstanding principle for these four dates. (4 points) Consider a 2-year...
A fixed coupon bond has a coupon rate of 4% paid semi-annually with a maturity date of 8/15/20. The bond uses a 30/360 day counting convention and is trading at a yield today (12/10/19) of 3%. Calculate the following for today: The Dirty Price of the Bond
Suppose a bond matures in 4 years with a coupon rate of 6% paid semi-annually and a yield-to-maturity of 10%, has a duration of 3.02. Using modified duration, what is the percentage change in price of the bond if the interest rate (ie, yield) decreases by 0.5%? A.-1.44% B.-0.50% OC. 0.50% CD. 1 .44%
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
A fixed coupon bond has a coupon rate of 4% paid semi-annually with a maturity date of 8/15/20. The bond uses a 30/360 day counting convention and is trading at a yield today (12/10/19) of 3%. Calculate the following for today: The Dirty Price of the Bond Answer this: The Accrued Interest of the Bond