Answer 6.
YTM =(Face value/current price)^(1/n) -1
here face value is 1000
current price is 1020
6. Verizon has a 10 year bond with a par value of $1000, an annual coupon...
7. A year ago a Mexican family converted 100,000 pesos into USD at a rate of 19.196 MXN per USD. The dollars were invested at an annual rate of 3% with daily compounding (365 days in a year). Today the dollars are converted back to pesos at a rate of 19.658 MXN per USD. How many pesos do they have today? 10 points Did the change in the exchange rates help or hurt the family? Explain. 5 points
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Consider a bond with a coupon rate of 10% and annual coupons. The par value is $1,000, and the bond has 5 years to maturity. The yield to maturity is 9%. What is the value of the bond? (in dollars) 987 1008 1006 918 1087 1020 996 1039 971 956
Bond A is a semi-annual coupon bond that has a face value of $1000, a 10% coupon rate, a five year maturity, and a yield to maturity of 7%. At the maturity date, how much payment should the bond investor expect from the bond? (a) $50 (b) $100 (c) $1035 (d) $1050
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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...
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macy's is planning a store expansion by issuing 10-year zero coupon bond that makes semi-annual coupon payments at a rate of 5.875% with a face value of $1,000. Assuming semi-annual compounding, what will be the price of these bonds, if the appropriate yield to maturity (discount rate) is 14%? PV= ? i/y= ? n=? PMT=? FV=?