Suppose I offered you the following Bond. The bond pays out $200 per year for ten...
Suppose I offered you the following Bond. The bond pays out $200 per year for ten years, then pays the principal payment $5000 at the end of the contract period. If I offered, you this bond for $3,156.63. What is the rate of return on this bond?
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Suppose I offered you the following Bond. The bond pays out $200
per year for ten...
6. Suppose that you purchase a 2 year coupon bond at the time it is issued...
6. Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond's "coupon rate"? b. What is the bond's "current yield"? C. What is the bond's (nominal) "yield to maturity"? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your "holding period...
11-16 I need help quick 9. You are offered an annuity that will pay $24,000 per...
11-16 I need help quick
9. You are offered an annuity that will pay $24,000 per year for 11 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today? AnnPay - 24,000 DR = 13 S 134PMT -24,00 world tried It Yrs 86-59 CK NO 1 FV-O Current value of annuity in 136,486.59 10. If you deposit $16,000 per year for 12...
You have just purchased a newly issued municipal bond for $1,000. The bond pays $50 to...
You have just purchased a newly issued municipal bond for $1,000. The bond pays $50 to its holder at the end of the the first, second, and third years and pays $1,050 upon its maturity at the end of the following year. a. What are the principal amount, the term, the coupon rate, and the coupon payment for your bond? Instructions: Enter your responses as whole numbers. Principal amount: $ Term: years Coupon rate: % Coupon payment: $ ...
Suppose you purchase a ten-year bond with 6 percent annual coupons. You hold the bond for four years, and sell it immedi...
Suppose you purchase a ten-year bond with 6 percent annual coupons. You hold the bond for four years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 4.5% when you purchased and 7% when you sold the bond. What is your annual rate of return on the bond in each of the following situations: a) All coupons were immediately spent when received. b) All coupons were reinvested in a bank account, which pays...
1. (a) You are offered an annuity that pays $200 at the end of each month, starting at the end of the current month and...
1. (a) You are offered an annuity that pays $200 at the end of each month, starting at the end of the current month and lasting for four years. The annual interest rate is 3.2% compounded monthly. What is the present value of this annuity? (b) Suppose you need the payments from question 1a to occur at the start of each month. What is the new present value? (c) A third annuity has the same payment schedule and interest rate...
suppose you have a standard coupon bond with a principal value of 50000 that matures in...
suppose you have a standard coupon bond with a principal value of 50000 that matures in three years. the coupon rate is 4% and the coupon is paid annually with the first payment due in 12 months from today? ("Standard" refers to a non-callable bond contract.) a) If the YTM is 3%, what is the price of the bond today? b) Suppose the price moves to $48,638.38. What is the new YTM? c) Now suppose the original bond from part...
Functions . (a) You are offered an annuity that pays $200 at the end of eachh month, starting at the end of the...
Functions . (a) You are offered an annuity that pays $200 at the end of eachh month, starting at the end of the current month and lasting for four years. The annual interest rate is 3.2% compounded monthly. What is the present value of this annuity? (b) Suppose you need the payments from question la to occur at the start of each month. What is the new present value? (c) A third annuity has the same payment schedule and interest...
If a ten-year bond pays a coupon of $50 annually and will repay principal of $1,000...
If a ten-year bond pays a coupon of $50 annually and will repay principal of $1,000 upon maturity and: a. It trades at 'par', i. What is the price of the bond? ii. What is the coupon yield? iii. What is the yield-to-maturity (YTM)? b. It trades at a price of $900 i. What is the coupon yield? ii. What is the yield-to-maturity (YTM) [Use your 5 keys to solve]? C. It trades at a price of $1081.11 i. What...
Suppose you can save $200 per year at the end of each year for 15 years...
Suppose you can save $200 per year at the end of each year for 15 years and earn 5.49% interest per year. However, you cannot start saving for six years, so the first payment occurs in the six year. What is the present value of this annuity? On excel.
please show your work Bonds 12.14 A bond has face amount of $1000, matures in seven years, and pays $80 interest...
please show your work
Bonds 12.14 A bond has face amount of $1000, matures in seven years, and pays $80 interest every year. To yield 6%, the price of the bond is nearest: (A) S1000 (B) $1110 (C) $1450 (D) $1560 Inflation 12.15 Ferox Engineering Company intends to sign a contract obligating it to provide bridge inspection services for five years. In return, Ferox will receive $5000 initially and $10,000 at the end of each of the five years of...
6. Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond's "coupon rate"? b. What is the bond's "current yield"? C. What is the bond's (nominal) "yield to maturity"? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your "holding period...
11-16 I need help quick
9. You are offered an annuity that will pay $24,000 per year for 11 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today? AnnPay - 24,000 DR = 13 S 134PMT -24,00 world tried It Yrs 86-59 CK NO 1 FV-O Current value of annuity in 136,486.59 10. If you deposit $16,000 per year for 12...
Functions . (a) You are offered an annuity that pays $200 at the end of eachh month, starting at the end of the current month and lasting for four years. The annual interest rate is 3.2% compounded monthly. What is the present value of this annuity? (b) Suppose you need the payments from question la to occur at the start of each month. What is the new present value? (c) A third annuity has the same payment schedule and interest...
If a ten-year bond pays a coupon of $50 annually and will repay principal of $1,000 upon maturity and: a. It trades at 'par', i. What is the price of the bond? ii. What is the coupon yield? iii. What is the yield-to-maturity (YTM)? b. It trades at a price of $900 i. What is the coupon yield? ii. What is the yield-to-maturity (YTM) [Use your 5 keys to solve]? C. It trades at a price of $1081.11 i. What...
please show your work
Bonds 12.14 A bond has face amount of $1000, matures in seven years, and pays $80 interest every year. To yield 6%, the price of the bond is nearest: (A) S1000 (B) $1110 (C) $1450 (D) $1560 Inflation 12.15 Ferox Engineering Company intends to sign a contract obligating it to provide bridge inspection services for five years. In return, Ferox will receive $5000 initially and $10,000 at the end of each of the five years of...
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