Solve the problem. Find the face value (to the nearest thousand dollars) of the 10-year zero-coupon bond at 3.6% (compounded semiannually) with a price of $17,498. Solve the problem. You have mo...
Gordon Gekko wants to invest 50 thousand dollars into a 10-year CD compounded semiannually with an annual interest rate of 3%. If Gordon leaves the money in the CD for all 10 years, how much money will he have when the CD matures? Round your answer to the nearest cent.
A 9-year zero coupon bond with a $1,000 face value has an interest rate of 3.6% per year. What would be the change in the bonds value if the 9-year interest rate were to rise by 34 basis points. (Remember: your answer should not quote in percent or basis points.)
3 Q067 Zero Coupon Bonds Zero-coupon bonds are sold at a substantial discount from the face value, and the buyer receives the face value of the bond when it matures. The difference between the face value and the price of the bond is the interest earned To determine the purchase amount of a zero-coupon bond. Calculate the present value of the Future value) maturity value. Veronica bought a 15-year zero-coupon bond paying 7% (annual rate) interest (compounded semiannually) for $8.906.96....
Find the interest rate for a $7500 deposit accumulating to $12,042, compounded annually for 8 years. The interest rate is %. (Do not round until the final answer. Then round to two decimal places as needed.) Find the face value of the zero-coupon bond. 17-year bond at 5.4%; price $6000 The face value will be $ (Do not round until the final answer. Then round to the nearest dollar as needed.) Find the face value of the zero-coupon bond. 20-year...
Question 1 What is the price of a zero-coupon 21-year maturity bond per face (par) value of $1,000 if the annual market rates for these bonds are 8%? Question 2 What is the price of a 17-year bond paying 8.8% annual coupons with a face (par) value of $1,000 if the market rates for these bonds are 6.8%? Question 3 What is the price of a 14-year bond paying an annual coupon rate of 9.4%, but paying it semiannually, per...
Chapter 8: What is the value of a 20-year, zero-coupon bond with a face value of $1,000 when the market required rate of return is 11.6 percent, compounded semiannually? Show your work on the spreadsheet. O $104.85 O $323.81 O $1,000.00 O $111.36
What is the price of a 6-year, 7.8 % coupon rate, $ 1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 7.2 %? The price of the bond is $__. (Round to the nearest cent.)
Question 3 Homework. Unanswered A 6-year zero-coupon bond has a face value of $1,000. If its YTM changes from 3.6% to 5.1%, what is the resulting percentage change in its price? Use the price determined from the first yield, 3.6%, as the base in the percentage calculation. Round to the nearest hundredth of a percent. (e.g., 4.32% = 4.32). (Hint: If the price dropped, enter a negative number]. Numeric Answer: Unanswered 2 attempts left Submit Question 4 Homework. Unanswered What...
1. If you buy a semi-annually compounded 5-year corporate coupon bond with a face value of $1000, coupon rate of 4%, and yield to maturity of 6%, then you know that a)the fair price of the bond is less than $1000. b)the coupon amount is $30. c)both a) and b) are correct. d)neither a) nor b) is correct. 2. Assuming 365 days in a year, if the annual interest rate is 10%, what is the present value of a $100...
1. What is the YTM on a 4-year bond that pays $50 semiannually and has a current price of $1,087.52? Assume the face value is $1,000 and that there is exactly six months before the first interest payment. 2. 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%? 3. Find the price of a 15-year zero-coupon bond when the...