Timothy has an oppurtunity to buy a $1,000 par value municipal bond with a coupn rate...
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Timothy has an oppurtunity to buy a $1,000 par value municipal bond
with a coupn rate...
Please show your work Return on Bonds. Timothy has an opportunity to buy a $2,000 par...
Please show your work
Return on Bonds. Timothy has an opportunity to buy a $2,000 par value corporate bond with a coupon rate of 6% and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 8%, what should he pay for the bond? If Timothy requires a return of 8%, the amount he should pay for the bond is $ . (Round to the nearest cent.)
17. (8 points) Jose purchased a euro bond, which has a par value of $1,000 yield...
17. (8 points) Jose purchased a euro bond, which has a par value of $1,000 yield to maturity of 2.80% with five years until maturity. The e years Jose sold the bond at a price of $1010. If he was able to ond at a price of S1010. If he was able to invest the annual coupon at a return of 2.50%, what is his total realized retum over the two years? wch has a par value of S1,000, a...
Question 5. Bond pricing (1 points) A municipal bond with a par value of $1,000 and...
Question 5. Bond pricing (1 points) A municipal bond with a par value of $1,000 and a maturity of 10 years has a coupon rate of 5% paid annually and the required rate of return for investors is only 4%. a) Calculate the bond value. b) Does the bond sell at par, premium, or discount? Explain why.
You buy a bond with a $1,000 par value today for a price of $900. The...
You buy a bond with a $1,000 par value today for a price of $900. The bond has five years to maturity and makes annual coupon payments of $80 per year. You hold the bond to maturity, but you do not reinvest any of your coupons. What was your realized compound return over the holding period?
A 10-year Treasury bond with par value of $1,000 has a 6% p.a. coupon rate and...
A 10-year Treasury bond with par value of $1,000 has a 6% p.a. coupon rate and pays interest every six months. The bond is four years old and has just made its eighth payment. The market now requires a 7% p.a. return on the bond. What is the expected price of the bond? a. $965.63 b. $981.63 c. $809.34 d. $951.68 e. $1,000.00
Question 18 1 pts Consider a $1,000 par value bond which pays an annual coupon rate...
Question 18 1 pts Consider a $1,000 par value bond which pays an annual coupon rate of 7% and has 8 years to maturity. Interest is paid semi-annually. If the required rate of return is 8% (annually), what is this bond's price? $942.50 $911.52 $941.74 $1,064.81 None of the above. Question 19
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in...
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
Calculate the current price of a $1,000 par value bond that has a coupon rate of...
Calculate the current price of a $1,000 par value bond that has a coupon rate of 7 percent, pays coupon interest annually, has 24 years remaining to maturity, and has a current yield to maturity (discount rate) of 11 percent. (Round your answer to 2 decimal places and record without dollar sign or commas).
Question #8 (20 Points): If you buy municipal bond (tax free) that cost $1,000 and will...
Question #8 (20 Points): If you buy municipal bond (tax free) that cost $1,000 and will pay a 4.5% coupon for the next 20 years (so the maturity date is in 20 years). At maturity the bond returns the original $1,000. If there is a 2% annual inflation, what real rate of return will you receive?
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures...
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a 584.52 discount from par value. The approximate yield to maturity on this bond is A6% B. 7% C. 8% D. 9% For a discount bond, its coupon rate is_than its yield to maturity and its price is expected to ___over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A...
Please show your work
Return on Bonds. Timothy has an opportunity to buy a $2,000 par value corporate bond with a coupon rate of 6% and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 8%, what should he pay for the bond? If Timothy requires a return of 8%, the amount he should pay for the bond is $ . (Round to the nearest cent.)
17. (8 points) Jose purchased a euro bond, which has a par value of $1,000 yield to maturity of 2.80% with five years until maturity. The e years Jose sold the bond at a price of $1010. If he was able to ond at a price of S1010. If he was able to invest the annual coupon at a return of 2.50%, what is his total realized retum over the two years? wch has a par value of S1,000, a...
Question 5. Bond pricing (1 points) A municipal bond with a par value of $1,000 and a maturity of 10 years has a coupon rate of 5% paid annually and the required rate of return for investors is only 4%. a) Calculate the bond value. b) Does the bond sell at par, premium, or discount? Explain why.
Question 18 1 pts Consider a $1,000 par value bond which pays an annual coupon rate of 7% and has 8 years to maturity. Interest is paid semi-annually. If the required rate of return is 8% (annually), what is this bond's price? $942.50 $911.52 $941.74 $1,064.81 None of the above. Question 19
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
Question #8 (20 Points): If you buy municipal bond (tax free) that cost $1,000 and will pay a 4.5% coupon for the next 20 years (so the maturity date is in 20 years). At maturity the bond returns the original $1,000. If there is a 2% annual inflation, what real rate of return will you receive?
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a 584.52 discount from par value. The approximate yield to maturity on this bond is A6% B. 7% C. 8% D. 9% For a discount bond, its coupon rate is_than its yield to maturity and its price is expected to ___over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A...
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