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What is the value to you of a 5-year $1,000 face -
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?What price would you pay for a 10-year, AA bond with a Face Value of $1,000 and a coupon rate of 7.10%?suppose you bought a 5- year-zero coupon Treasury bond for $800 per $1000 face value.What is the yield to maturity ( annual compounding ) on the bond?
- What's the value to you of a $1,000 face-value bond with an 11% annual coupon rate and 11years to maturity when your required rate of return is 12 percent?What is the yield to maturity on a bond that has a price of $1,700 and a coupon rate of 12% annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at premium, at par, or at discount? How can you tell? (Using financial calculator)What's the value to you of a $1,000 face-value bond with an 7% semi-annual coupon rate and 9 years to maturity when your required rate of return is 11 percent?
- What is the duration of the following bond: $1,000 par value, 6% annual coupon, 4 years to maturity, and yield to maturity of 6.5%? You will need your answer for the next question.suppose that you have purchased a 3- year zero-coupon bond with face value of $1000 and a price $850. if you hold the bond to maturity, what is your annual return?Consider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the rate of return of the bond? What is the yield to maturity of the bond?
- Consider a bond with a face value of $5,000 that pays a coupon of $200 for 5 years. Suppose the bond is purchased at $5,000, and can be resold next year for $4,800. What is the rate of return and the yield to maturity of the bond? rate of return = 4%, yield to maturity = 0% rate of return = 0%, yield to maturity = 4% rate of return = 8%, yield to maturity = - 4% rate of return = 4%, yield to maturity = 4%Suppose you bought a five-year zero-coupon Treasury bond for $800 per $1000 face value. What is the yield to maturity (annual compounding) on the bond?What is the price of a 23-year bond with 10.2% semi-annual coupons and a yield to maturity of 14.52%? Your Answer: