B. If the price of this bond decreased to $7,436.18, calculate the new yield. The interest rate (and the payment) stays the same. Use the space below, show the work and circle your answer. C. Describe the change in the price and the yield. What economic problem do investors expect to happen? Use the lines below for your answer. Price业Yield- facession
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A. Calculate the Yield on a $10,000 government bond that matures in 2 years, pays 3% interest 7, and has a current market price of $8,256.28. Use the space below, show the work and circle your a...
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...
A $1,000 bond has a 7.5 percent coupon and matures after nine years. If current interest...
A $1,000 bond has a 7.5 percent coupon and matures after nine
years. If current interest rates are 9 percent, what should be the
price of the bond? Assume that the bond pays interest annually. Use
Appendix B and Appendix D to answer the question. Round your answer
to the nearest dollar.
$
If after five years interest rates are still 9 percent, what
should be the price of the bond? Use Appendix B and Appendix D to
answer the...
Calculate the price of a zero-coupon bond that matures in 24 years if the market interest...
Calculate the price of a zero-coupon bond that matures in 24 years if the market interest rate is 4.9 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero-coupon bond price
Show all work: A 7-year, 8% coupon bond pays interest semi-annually. The bond has a face...
Show all work: A 7-year, 8% coupon bond pays interest semi-annually. The bond has a face value of $1,000. What is the price of this bond if the yield to maturity is 4.0%?
please answer both and show work! Calculate the current price of a $5,000 par value bond...
please answer both and show work!
Calculate the current price of a $5,000 par value bond that has a coupon rate of 20 percent, pays coupon interest quarterly (i.e. 4 times per year), has 22 years remaining to maturity, and has a current yield to maturity (discount rate) of 8 percent. (Round your answer to 2 decimal places and record without dollar sign or commas). Calculate the current price of a $1,000 par value bond that has a coupon rate...
Problem 7-11 Zero-Coupon Bond Price (LG7-4) Calculate the price of a zero-coupon bond that matures in...
Problem 7-11 Zero-Coupon Bond Price (LG7-4) Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 3.8 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero-coupon bond price At the beginning of the month, you owned $6,000 of News Corp. $5,000 of First Data, and $8,500 of Whirlpool. The monthly returns for News Corp. First Data, and Whirlpool were 8.24 percent, -2.59...
Bond and Stock Evaluation. Solve each problem and show your work! 1. A bond with a...
Bond and Stock Evaluation. Solve each problem and show your work!
1. A bond with a coupon rate of 7.30% has a price that today equals $868.92. The $1,000 face value bond pays coupon every 6 months, 30 coupons remain, anda coupon was paid yesterday. Suppose you buy this bond at today's price and hold it so that you receive 20 coupons. You sell the bond upon receiving that last coupon. Find the selling price if the bond's YTM remains...
A 2-year $1000 face value bond pays an annual coupon of 6% and has a ytm of 4%. What is this bond's price? What is this bond's duration? Answer this question the long way, e.g., calculate the...
A 2-year $1000 face value bond pays an annual coupon of 6% and has a ytm of 4%. What is this bond's price? What is this bond's duration? Answer this question the long way, e.g., calculate the bond price as the present value of future cash flows. Use the related expression for duration from the lectures. Do not use the complex formulas for bond price and duration. You must show your work – the numbers in the formulas – to...
2. Bond prices and interest rates Aa Aa The remarkable thing about the events described in the ar...
2. Bond prices and interest rates Aa Aa The remarkable thing about the events described in the article is that the yield on the 3-month T-bill was briefly negative. To see how this could happen, you need an understanding of the relationship between bond prices and bond yields A 3-month T-bill with a maturity value of $1,000 is just a piece of paper that entitles the holder to $1,000 in three months. For example, if you were to buy a...
44. Calculate the issue price of a $1,000,000, 10%, 10-year bond that pays interest semiannually, assuming the market rate is 8%. Use the time value factors below to help you complete your answer...
44. Calculate the issue price of a $1,000,000, 10%, 10-year bond that pays interest semiannually, assuming the market rate is 8%. Use the time value factors below to help you complete your answer (you may have a small rounding error): Periods Rate 4gi S2S 825 10% Present Value of $1 0.67556 0.61391 0.46319 0.38554 0.45639 0.37689 0.21455 0.14864 10 20 8.11090 7.72173 6.71008 6.14457 3.59033 12.46221 9.81815 8.51356 Present Value of Annuity 10 20 a. $1,137,862 b. $1,135,907 c. $1,000,000...
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...
A $1,000 bond has a 7.5 percent coupon and matures after nine
years. If current interest rates are 9 percent, what should be the
price of the bond? Assume that the bond pays interest annually. Use
Appendix B and Appendix D to answer the question. Round your answer
to the nearest dollar.
$
If after five years interest rates are still 9 percent, what
should be the price of the bond? Use Appendix B and Appendix D to
answer the...
Calculate the price of a zero-coupon bond that matures in 24 years if the market interest rate is 4.9 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero-coupon bond price
please answer both and show work!
Calculate the current price of a $5,000 par value bond that has a coupon rate of 20 percent, pays coupon interest quarterly (i.e. 4 times per year), has 22 years remaining to maturity, and has a current yield to maturity (discount rate) of 8 percent. (Round your answer to 2 decimal places and record without dollar sign or commas). Calculate the current price of a $1,000 par value bond that has a coupon rate...
Problem 7-11 Zero-Coupon Bond Price (LG7-4) Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 3.8 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero-coupon bond price At the beginning of the month, you owned $6,000 of News Corp. $5,000 of First Data, and $8,500 of Whirlpool. The monthly returns for News Corp. First Data, and Whirlpool were 8.24 percent, -2.59...
Bond and Stock Evaluation. Solve each problem and show your work!
1. A bond with a coupon rate of 7.30% has a price that today equals $868.92. The $1,000 face value bond pays coupon every 6 months, 30 coupons remain, anda coupon was paid yesterday. Suppose you buy this bond at today's price and hold it so that you receive 20 coupons. You sell the bond upon receiving that last coupon. Find the selling price if the bond's YTM remains...
2. Bond prices and interest rates Aa Aa The remarkable thing about the events described in the article is that the yield on the 3-month T-bill was briefly negative. To see how this could happen, you need an understanding of the relationship between bond prices and bond yields A 3-month T-bill with a maturity value of $1,000 is just a piece of paper that entitles the holder to $1,000 in three months. For example, if you were to buy a...
44. Calculate the issue price of a $1,000,000, 10%, 10-year bond that pays interest semiannually, assuming the market rate is 8%. Use the time value factors below to help you complete your answer (you may have a small rounding error): Periods Rate 4gi S2S 825 10% Present Value of $1 0.67556 0.61391 0.46319 0.38554 0.45639 0.37689 0.21455 0.14864 10 20 8.11090 7.72173 6.71008 6.14457 3.59033 12.46221 9.81815 8.51356 Present Value of Annuity 10 20 a. $1,137,862 b. $1,135,907 c. $1,000,000...
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