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 $_____
Consider an annual coupon bond with a face value of $100, 5 years to maturity, and...
Consider an annual coupon bond with a face value of $100, 12 years to maturity, and a price of $93. The coupon rate on the bond is 9%. If you can reinvest coupons at a rate of 4% per annum, then how much money do you have if you hold the bond to maturity? The total proceeds from holding the bond to maturity are $ nothing. (Round to the nearest cent.)
Consider an annual coupon bond with a face value of $100, 15 years to maturity, and a price of $94. The coupon rate on the bond is 2%. If you can reinvest coupons at a rate of 5% per annum, then how much money do you have if you hold the bond to maturity? The total proceeds from holding the bond to maturity are $nothing. (Round to the nearest cent.)
Consider an annual coupon bond with a face value of $100,5 years to maturity, and a price of $87. The coupon rate on the bond is 3%. If you can reinvest coupons at a rate of 1.5% per annum, then how much money do you have if you hold the bond to maturity? The total proceeds from holding the bond to maturity are $ (Round to the nearest cent.)
Consider an annual coupon bond with a face value of $100100, 44 years to maturity, and a price of $8585. The coupon rate on the bond is 66%. If you can reinvest coupons at a rate of 22% per annum, then how much money do you have if you hold the bond to maturity?
a. Springfield Nuclear Energy Inc. bonds are currently trading at $1,775.16. The bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 25 years. What is the yield to maturity of the bonds? b. Consider an annual coupon bond with a face value of $100,12 years to maturity, and a price of $76. The coupon rate on the bond is 6%. If you can reinvest coupons at a rate of...
a. Springfield Nuclear Energy Inc. bonds are currently trading at $1,775.16. The bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 25 years. What is the yield to maturity of the bonds? b. Consider an annual coupon bond with a face value of $100,12 years to maturity, and a price of $76. The coupon rate on the bond is 6%. If you can reinvest coupons at a rate of...
Consider a bond with market value $92.37 (face value = $100) and a coupon of $5.059 dollars paid every six months (Semi-annually - December and June). The time to maturity is 10 semiannual periods. Assume today is January 1st, 2015. Therefore, the face value of the bond will be repaid on December 2019. Upload your spreadsheet on the course website (you might want to use the spreadsheet “11 Bond Yield and Duration Example” that we analyzed in class as a...
Consider a 3-year risk-free bond, which pays annual coupons. The coupon rate is 3.5% and the face value is 500. The bond is issued at time t=0, pays coupons at time t=1,2,3 and face value at time t=3. You purchase the bond at time t=0. While holding the bond, you do not reinvest the coupon payments. You resell the bond in one year, after getting the first coupon payment. The yield to maturity when you sell is 3.6%. What is...
Consider a 3-year risk-free bond, which pays annual coupons. The coupon rate is 3.5% and the face value is 500. The bond is issued at time t=0, pays coupons at time t=1,2,3 and face value at time t=3. You purchase the bond at time t=0. While holding the bond, you do not reinvest the coupon payments. What is the future value, at time t=2, of the coupon payments you received if you held the bond from t=0 to maturity? What...
Calculate the bond price for maturity 4 years with face (nominal) value 100, annual coupons 5, and continous compounding with interest a) 8% and b) 5%. What do you notice?