A 8 year $18000 par-valued bond pays monthly coupons. If the yield rate is y(12) = 10% and the purchase price is $11475.75, what is the coupon rate c(12)?
Answer is 3.40%
we need to Find PMT using PMT funtion
RATE 10%/12 | 0.83% |
NPER 8*12 | 96 |
PV | -11475.8 |
FV | 18000 |
PMT(.83%,96,-11475.8,18000) | Rs. 51.00 |
So Coupon Payment rate =(51*12)/18000 | 3.40% |
A 8 year $18000 par-valued bond pays monthly coupons. If the yield rate is y(12) =...
(1 point) A 10 year $11 000 par-valued bond pays monthly coupons. If the yield rate is y 12-9% and the purchase price is $7381.84, what is the coupon rate c12? Answer: (1 point) Two bonds, each with a face value of $13000, are redeemable at par in t-years and priced to yield y4-8%. Bond 1 of P? has a coupon rate c4-11.8% and sells for $15628.24. Bond 2 has coupon rate c-5% and sells for S R What is...
(1 point) A 9 year $11000 par-valued bond pays semi-annual coupons. If the yield rate is y2 = 10% and the purchase price is $7656.78, what is the coupon rate cz?
(1 point) A 7 year $16000 par-valued bond pays semi-annual coupons. If the yield rate is y2 is $11882.17, what is the coupon rate c2? 10% and the purchase price Answer:
(1 point) A 6 year $13000 par-valued bond pays quarterly coupons. If the yield rate is y4-6% and the purchase price is $11763.12, what is the coupon rate c4? Answer: 2.0499981*2
4) Suppose a three-year, $100 par value bond with a 8% coupon rate and semiannual coupons is trading with a yield to maturity of 10%. a) What is the current price of this bond? Is it trading at a discount, at par, or at a premium? b) What will be the price of the bond, if yield to maturity decreases to 6%?
A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons of $21. (a) Suppose the yield for this bond is 4% per year compounded semiannually. What is the price of the bond? (b) Is the bond selling above or below par value? Why?
A twelve year 5,000 par valued floating rate bond with annual coupons has a price P such that the investor’s APY is 8%. The annual coupon rate for the n-th year is given by the function .07+.0035*n (please no excel formulas) a. Find the price P b. Find the amount of Principal P6 in the sixth coupon payment c. Find the interest I5 in the fifth coupon payment d. Find the amount of the discount or premium for this bond.
Donald purchases a 15-year bond that pays semi-annual coupons at 5% annual coupon rate. He pays 2,345 for the bond, which can be called at its par value X on any coupon date starting at the end of year 10. The price guarantees that Donald will receive a yield of at least 4% convertible semi-annually. Joe purchases a 15 year bond identical to Donald's, except it is not callable. Assuming the same yield, what is the price of Joe's bond.
Consider a 2-year $4000 bond that's redeemable at par and pays semi-annual coupons at a rate of c2) 8%. 70. (a) Suppose that the yield rate is 4% compounded annually. Determine: The purchase price of the bond. P = $ %3D The bond's duration to 3 decimals. D: years %3| Note: Use the purchase price to the closest cent in your duration calculation. (b) Suppose that the yield rate is 4% compounded semi-annually. Determine: The purchase price of the bond....
Consider a 8-year, $1,000 par, 4% bond that pays semi-annual coupons. What is the price of this bond if interest rate is 5%?