Below is a list of prices for $1,000-par zero-coupon Treasury securities of various maturities. An 11% coupon $100 par bond pays an semi-annual coupon and will mature in 1.5 years. What should be the YTM on the bond? Assume semi-annual interest compounding for this question. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321. Maturity (periods) 1 2 3 Price of $1,000 par bond 943.4 873.52 780

Below is a list of prices for $1,000-par zero-coupon Treasury securities of various maturities. An 11% coupon $100 par bond pays an semi-annual coupon and will mature in 1.5 years. What should be the YTM on the bond? Assume semi-annual interest compounding for this question. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321. Maturity (periods) 1 2 3 Price of $1,000 par bond 943.4 873.52 780

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

See similar textbooks

Similar questions

Consider the market rates for the maturities 1, 2, and 3 years respectively in the table below. What is the price of a 3-year bond with annual payments, coupon rate equal to 9.50% and face value equal to $68,000. Answer with two decimal digits accuracy. Example: 74929.05 t 1 2 3 R(0,t) 1.95 2.90 4.40 Blank Excel Worksheet Your Answer: Answer
Consider a bond with a current value of $928.01. It is a 10-year, $1,000 bond, coupons paid semi-annually, and has a 7% coupon rate. a. The bond's yield to maturity (YTM) is: b. What will be its value (per $1,000 of face) if its YTM changes to 10%? Question content area bottom Part 1 a. The YTM is enter your response here%. (Round to two decimal places.) b. Value (per $1,000 of face): $enter your response here. (Round to the nearest cent.)
Consider a bond with maturity 2 year, 100 face value, coupon 3.60%, and yield 7.20%. Compute a dollar duration numerically using a dy =0.001%, Report you result with two digits decimal accuracy and the correct sign. Example:-185.95 Blank Excel Worksheet Your Answer: Answer
Question 12 Below is a list of prices for $1,000-par zero-coupon Treasury securities of various maturities. A 8 % coupon $100 par bond pays a semi-annual coupon and will mature in 1.5 years. What should be the YTM on the bond? Assume semi-annual interest compounding for this question. Enter your answer in decimal form, rounded to 4 decimals. Thus, if your answer is 0.12345678, just enter 0.1235 Maturity (periods) 1 2 3 Price of $1,000 par bond 952.2 855 760.5
Consider a bond that pays annually an 8% coupon with 20 years to maturity. The percentage change in the price of the bond if its yield to maturity increases from 5% to 7% is closest to? Set your decimal places to 4 in your financial calculator. a 19.50% b 24.22% c -24.22% d -19.50%
Consider a bond that has a price of $1046.76, a coupon rate of 8.8%, a yield to maturity of 8.1%, a face value of $1000, and 10 years to maturity. What is the current yield? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below. Enter your answer to 2 DECIMAL PLACES. Number %
Suppose a five- year, $ 1 comma 000$1,000 bond with annual coupons has a price of $ 904.31$ 904.31 and a yield to maturity of 6.1 %6.1% . What is the bond's coupon rate? Question content area bottom Part 1 The bond's coupon rate is enter your response here % . (Round to three decimal places.)
Give typing answer with explanation and conclusion A Treasury bond that matures in 10 years has a yield of 7%. A 10-year corporate bond has a yield of 10%. Assume that the liquidity premium on the corporate bond is 0.8%. What is the default risk premium on the corporate bond? Round your answer to one decimal place.
Suppose that you purchase a bond from a company that promises to pay $52.66 in coupon payments for the next 6 years, with a maturity bonus of $152.05 What is the total amount of money that this bond will pay out over its Motime? Round your answer to two (2) decimal places if necessary and do not include a dollar sign Plz do fast
Find the yield to maturity (YTM) for a 10-year, 5% annual coupon rate, $1,000 par value bond if the bond sells for $918 currently? We assume that interest is paid on this bond annually. 6.12% 6.91% 7.33% 7.86% Using the information from Question 38, calculate the bond’s current yield. 5.00% 5.45% 6.50% 8.21% Using the information from Question 38 and 39, calculate the bond’s capital gain yield. -0.35% 0.35% 0.67% -0.67%
Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Bond B According to the expectations hypothesis, what is the market's expectation of the yield curve one year from now? Specifically, what are the expected values of next year's yields on bonds with maturities of (a) one year? (b) two years? (c) three years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) с D YTM(%) 5.1% Years to Maturity 1 2 3 6.1 6.6 7.1 YTM (%) % % %
Question 2 : Consider a bond with: - 3-year (remaining) maturity - Par value of 1000 - 5% coupon, paid annually. If the bonds are currently trading at a price of 950, what is their yield-to-maturity? If the yield-to-maturity required by the investors increases by 1% what is the new price of the bond? Compute the duration of the bond Use the bond duration computed in c) to estimate its change in price following a 1% change in the yield-to-maturity and compare the actual change computed in b).