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. Current yield is 6.2% today on a bond that is just issued with 4 years to maturity, 6.5% coupon rate and S1,000 face...
2. You just bought a newly issued bond which has a face value of S1,000 and pays its coupon once annually. Its coup...
2. You just bought a newly issued bond which has a face value of S1,000 and pays its coupon once annually. Its coupon rate is 5%, maturity is 20 years and the yield to maturity for the bond is currently 8%. a. Do you expect the bond price to change in the future when the yield stays at 8%? Why or why not? Explain. (No calculation is necessary.) (2 marks) b. Calculate what the bond price would be in one...
ouphi& Shour ur wort. Coupon rate 6% Face value $1,000 Maturity 10 years Yield to maturity-6.5%...
ouphi& Shour ur wort. Coupon rate 6% Face value $1,000 Maturity 10 years Yield to maturity-6.5% a) Assuming this bond pays interest semi-annually, and there is exactly six months until the next coupon payment, find its current price and current yield. b) Assume this bond matures in 9 years and 9 months, find the price and the amount of Saccrued interest. (Assume semi-annual coupons.) c) Assume this bond is callable in eight years at $1,060. Find the bond's yield to...
Consider a coupon bond with two years left to maturity. It has a face value of...
Consider a coupon bond with two years left to maturity. It has a face value of $1000 and a coupon rate of 6%. Assume that all investors believe that the first coupon, to be received one year from today, will be paid but that there is only a 60% probability that the second coupon and the principal will be paid two years from today. There is a 40% chance that the investor will receive only $700 at the end of...
A $5,000 bond with a coupon rate of 6.5% paid semiannually has eight years to maturity and a yield to maturity of 7.8% ....
A $5,000 bond with a coupon rate of 6.5% paid semiannually has eight years to maturity and a yield to maturity of 7.8% . If interest rates rise and the yield to maturity increases to 8.1% , what will happen to the price of the bond? a. fall by $82.87 b. rise by $82.87 c. fall by $99.44 d. The price of the bond will not change
You own a S1,000 face value, zero-coupon bond that has 5 years of remaining maturity. You plan on selling the bond in o...
You own a S1,000 face value, zero-coupon bond that has 5 years of remaining maturity. You plan on selling the bond in one year and believe that the required yield next year will have the following probability distribution: Probability 0.1 Required Yield 5.50% 5.75% 0.1 0.6 6.00% 625°/o 0.1 0.1 6.50% a. What is your expected price when you sell the bond? b. What is the standard deviation?
You own a S1,000 face value, zero-coupon bond that has 5 years...
6. A company issued a 25-year bond two years ago at a coupon rate of 5.3...
6. A company issued a 25-year bond two years ago at a coupon rate of 5.3 percent. The bond makes semiannual coupon payments. If the bond currently sells for 105 percent of its par value of $1,000, what is the YTM? 7. Bond X makes semiannual payments. The bond pays a coupon rate of 7 percent, has a YTM of 6.2 percent, and has 13 years to maturity. Bond Y makes semiannual payments. This bond pays a coupon rate of...
An investor buys a bond with the following characteristics: Maturity - 10 years Coupon - 4.5%,...
An investor buys a bond with the following characteristics: Maturity - 10 years Coupon - 4.5%, paid once per year Nominal Value - £100 The yield to maturity at the time of purchase is 8.50%. The investor sells the bond immediately after the sixth coupon payment, when the yield to maturity rises to 9.50%. a.What is the investor’s realised annual rate of return after the sale of the bond, assuming that the investor can reinvest received coupons at the yield...
A semi-annual coupon bond has a 6 percent coupon rate, a $1,000 face value, a current...
A semi-annual coupon bond has a 6 percent coupon rate, a $1,000 face value, a current value of $1,036.09, and 3 years until the first call date. What is the call price if the yield to call is 6.5 percent? A STRIPS has a yield to maturity of 6.2 percent, a par value of $25,000, and a time to maturity of 10 years. What is the price
A bond with 16 years until maturity has a coupon rate of 6.2 percent and a...
A bond with 16 years until maturity has a coupon rate of 6.2 percent and a yield to maturity of 6.7 percent. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price
An investor buys a bond with the following characteristics: Maturity - 10 years Coupon - 4.5%,...
An investor buys a bond with the following characteristics: Maturity - 10 years Coupon - 4.5%, paid once per year Nominal Value - £100 The yield to maturity at the time of purchase is 8.50%. The investor sells the bond immediately after the sixth coupon payment, when the yield to maturity rises to 9.50%. a.What is the Macaulay duration of the above bond, at the original time of purchase
2. You just bought a newly issued bond which has a face value of S1,000 and pays its coupon once annually. Its coupon rate is 5%, maturity is 20 years and the yield to maturity for the bond is currently 8%. a. Do you expect the bond price to change in the future when the yield stays at 8%? Why or why not? Explain. (No calculation is necessary.) (2 marks) b. Calculate what the bond price would be in one...
ouphi& Shour ur wort. Coupon rate 6% Face value $1,000 Maturity 10 years Yield to maturity-6.5% a) Assuming this bond pays interest semi-annually, and there is exactly six months until the next coupon payment, find its current price and current yield. b) Assume this bond matures in 9 years and 9 months, find the price and the amount of Saccrued interest. (Assume semi-annual coupons.) c) Assume this bond is callable in eight years at $1,060. Find the bond's yield to...
You own a S1,000 face value, zero-coupon bond that has 5 years of remaining maturity. You plan on selling the bond in one year and believe that the required yield next year will have the following probability distribution: Probability 0.1 Required Yield 5.50% 5.75% 0.1 0.6 6.00% 625°/o 0.1 0.1 6.50% a. What is your expected price when you sell the bond? b. What is the standard deviation?
You own a S1,000 face value, zero-coupon bond that has 5 years...
6. A company issued a 25-year bond two years ago at a coupon rate of 5.3 percent. The bond makes semiannual coupon payments. If the bond currently sells for 105 percent of its par value of $1,000, what is the YTM? 7. Bond X makes semiannual payments. The bond pays a coupon rate of 7 percent, has a YTM of 6.2 percent, and has 13 years to maturity. Bond Y makes semiannual payments. This bond pays a coupon rate of...
A bond with 16 years until maturity has a coupon rate of 6.2 percent and a yield to maturity of 6.7 percent. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price
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