A corporate bond is a 1% coupon bond with semi-annual coupon payments that matures in 22 years. If the YTM for this bond is 3.5% , the value of the bond is closest to:
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5. A corporate bond is a
1%
coupon bond with semi-annual coupon payments that matures in 22 years. If the YTM for this bond is
3.5%
, the
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- A corporate bond with annual coupons has a face value of $1,000, 4 years to maturity and a coupon rate of 8%. The market interest rate for similar bonds is 0.095. What is the bond's duration?1. Consider that a bond has a par value of 70,000 and pays an 8% coupon rate at the end of each year with 6 years remaining until maturity. Assume that the prevailing annualized yield on other bonds with similar characteristics is 9%. What is the price of the bond using method 1A bond that matures in 18 years has a par value of $1,000, anannual coupon of 10%, and a market interest rate of 7%. What is itsprice? ($1,301.77)
- A corporate bond with annual coupons has a face value of $1,000, 4 years to maturity and a coupon rate of 8%. The market interest rate for similar bonds is 0.095. What is the price of the bond (in $)?A)calculate the value of a bond that matures in 12 years and has a 1000 par value . the annual rate is 8% and the markets required yield to marurity on a comparable risk bond is 12% b) what will be the value of the bond be if the payments are semi annual? c) explain the four relationships of a corporate bond.A corporate bond has a face value of $1 000, a coupon rate of interest of 10.5% per annum, payable semi-annually, and 20 years remaining to maturity. The market interest rate for bonds of similar risk and maturity is currently 8.5% per annum.Required:i. What is the coupon payment of the bond? ii. What is the present value of the bond? iii. If the coupon payment is payable annual (based on the same information), what is the value of the bond?
- 7) The 10-year Treasury bond has a YTM = 4.726%. The price is $9,484.38 and the face value is $10,000 and payments are semi-annual. What is the coupon on the bond? (provide answer as x.xxx%)4. A 5-year bond (denote this as Bond A) with semiannual coupons has a face value of $1,000 and a coupon rate of 6%. The bond is redeemable at 125% of the face value at maturity, and is currently selling for $1,015. Assume the next coupon is due six months from now. (a) Using linear interpolation with end points being 9% and 10%, approximate the bond's effective annual yield. (b) Another 5-year bond (denote this as Bond B) pays annual coupons and has the same face value, coupon rate, redemption value and yield as Bond A. Which bond has a larger duration? Explain your answer.2. A 4 year Treasury Bond with a face value of $1,000 and an annual coupon rate of 6.50% had a yield to maturity of 3.15%. This bond makes 2 (semiannual) coupon payments per year and thus has 8 periods until maturity. What is price of this bond based on the Effective Annual Rate (EAR) convention? What is price of this bond based on the Annual Percentage Rate (APR) convention? On the same date, the following exchanges rates were observed: $1.00 = ¥9.5350, $1.00 - €0.4206, and $1 = IDR 52.75, Under both the EAR and APR conventions, what is the price of the bond in Chinese Yuan (¥), European Euros (€), and in Indian Rupees (IDR)?
- Bond A and Bond B are 6% coupon bonds, and have a 7% YTM, and pays annually. Bond A is 1 year from maturity and Bond B is 3 years from maturity. Calculate the duration of Bond A.A bond pays annual interest. Its coupon rate is 8%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity is currently 6%.The duration of this bond is _______ years. Group of answer choices A. 3.36 B. 3.23 C. 3.08 D. 3.5919.) A bond with a face value of $6000 and a 4.2% coupon has a 5-year maturity. Find the annual interest paid to the bondholder. (whole number)