assuming you want to purchase a 5 year bond that has a face value of $10,000 that pays 12% intrest. How muc are you wil...
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assuming you want to purchase a 5 year bond that has a face value of $10,000 that pays 12% intrest. How muc are you wil...
assuming you want to purchase a 5 year bond that had a face value of $10000...
assuming you want to purchase a 5 year bond that had a face value of $10000 that pays 12% intrest. How much are you willing to pay for this bond assuming marker rate is 12% A 5,674 B 1,200 C 10,000 D 29,805
Suppose that you are considering the purchase of a coupon bond with a face value of...
Suppose that you are considering the purchase of a coupon bond with a face value of $1,000 that matures after four years. The coupon payments are 6 percent of the face value per year. a. How much would you be willing to pay for this bond if the market interest rate (that is, the best alternative investment option) is also 6 percent? b. Suppose that you have just purchased the bond, and suddenly the market interest rate falls to 5...
2. (a) A Bond has a face value (PAR) of 10,000. t pays a an 8% yearly rate. You will hold it for S years and then plan to sell it at 1200.You want obtain an investment return of 12%/year. If you...
2. (a) A Bond has a face value (PAR) of 10,000. t pays a an 8% yearly rate. You will hold it for S years and then plan to sell it at 1200.You want obtain an investment return of 12%/year. If your wishes are met what isthe maximum amount you can pay for the bond at t 0. As part of the solution you must give the governing equation and show how you are using each term. quarterly dividend (bond...
Consider a 30-year bond that has a face value of $10,000 and a coupon rate of...
Consider a 30-year bond that has a face value of $10,000 and a coupon rate of 9% with quarterly coupon payments. The yield to maturity (YTM) of the bond is 4%. a. What is the maximum price would you be willing to pay for this bond right now? b. What is the maximum price would you be willing to pay for this bond right after its 14thcoupon payment? c. What is the maximum price would you be willing to pay...
You are considering a 20-year federal government bond with face value $10,000 and a coupon rate...
You are considering a 20-year federal government bond with face value $10,000 and a coupon rate of 4%. If you want the yield to maturity of the bond to be 7%, how much should you pay (in $) to purchase the bond?
You purchase a 30-year bond today with a $10,000 face value that makes annual coupon payments...
You purchase a 30-year bond today with a $10,000 face value that makes annual coupon payments at a 6% coupon rate (a) If the yield to maturity on 30 year bonds at the time of purchase was 5%, how much did you pay for the 30 year bond? (b) After holding the bond for 1 year, you find that the yield to maturity on 29 year bonds is 6%. What s new price of your bond and what has been...
You are considering the purchase of a 20-year bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000. You require a 12% nominal yield to maturity on this investment.
You are considering the purchase of a 20-year bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000. You require a 12% nominal yield to maturity on this investment.If the bond makes annual interest payments, what is the maximum price you should be willing to pay for the bond?If the bond makes semiannual interest payments, what is the maximum price you should be willing to pay for the bond?
You are considering the purchase of a 15-year $1,000 face value bond that would pay an...
You are considering the purchase of a 15-year $1,000 face value bond that would pay an coupon payment of $90 annually. If you required a return of 12%, how much should you be willing to pay for this bond? HINT: you do not need to solve this - remember what you know about bond prices and length of time to maturity.
5. Suppose a two year bond has a coupon of 15%, with a face value of...
5. Suppose a two year bond has a coupon of 15%, with a face value of $121. The current market interest rate is 10% a. What is the present discounted value of $121 if the interest rate stays at 10% for the foreseeable future? (Hint: what is the amount of money you need to put in the bank now to get $121 in two years at an interest rate of 10%) b. What is the price of this bond if...
5(b) A bond with a face value of $500,000 pays quarterly interest of 1.5% per each...
5(b) A bond with a face value of $500,000 pays quarterly interest of 1.5% per each period. be willing to pay for this bond today if the next interest payment is due now and you want earn 8% compounded quarterly on your money? Twenty interest payments remain before the bond matures. How much would you
2. (a) A Bond has a face value (PAR) of 10,000. t pays a an 8% yearly rate. You will hold it for S years and then plan to sell it at 1200.You want obtain an investment return of 12%/year. If your wishes are met what isthe maximum amount you can pay for the bond at t 0. As part of the solution you must give the governing equation and show how you are using each term. quarterly dividend (bond...
You purchase a 30-year bond today with a $10,000 face value that makes annual coupon payments at a 6% coupon rate (a) If the yield to maturity on 30 year bonds at the time of purchase was 5%, how much did you pay for the 30 year bond? (b) After holding the bond for 1 year, you find that the yield to maturity on 29 year bonds is 6%. What s new price of your bond and what has been...
5. Suppose a two year bond has a coupon of 15%, with a face value of $121. The current market interest rate is 10% a. What is the present discounted value of $121 if the interest rate stays at 10% for the foreseeable future? (Hint: what is the amount of money you need to put in the bank now to get $121 in two years at an interest rate of 10%) b. What is the price of this bond if...
5(b) A bond with a face value of $500,000 pays quarterly interest of 1.5% per each period. be willing to pay for this bond today if the next interest payment is due now and you want earn 8% compounded quarterly on your money? Twenty interest payments remain before the bond matures. How much would you
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