Find the coupon rate of a 10-year $1000 par semiannual coupon bond redeemable at par yielding 8% convertible semiannually, if its price is the same as that of a zero-coupon bond with face value $1000 maturing in 10 years and yielding 4% compounded quarterly.
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- Suppose that a 16-year bond with a face value of 1000 dollars is redeemable at par and earns interest at 9.2 percent convertible semiannually. If the yield rate is 7.1 percent convertible semiannually, what is the book value immediately before the payment of the 15th coupon? Answer = dollars.A $10000 bond with a coupon rate of 8.2% payable semiannually is redeemable after an unspecified number of years at $13500. The bond is bought to yield 10% convertible semiannually. If the present value of the redemption value is $3986.59 at this yield rate, find the purchase price.Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.8%, with semiannual payments.
- Find the value of a bond maturing in 11 years, with a $1,000 par value and a coupon interest rate of 11% (5.5% paid semiannually) if the required return on similar-risk bonds is 15% annual interest (7.5% paid semiannually). The present value of the bond is ?A 10 year bond pays interest of $28.20 semiannually, has a face value if $1000, and is selling for $810.01. What are its annual coupon rate and yield to maturity?What is the yield to maturity (expressed as APR with semi-annual compounding) for a three-year bond with a coupon rate of 10%, and coupons are paid semiannually? The face value of the bond is $1000, and the current trading price is $900.
- Compute the price of a 5.9 percent coupon bond with 15 years left to maturity and a market interest rate of 7.0 percent. (Assume interest payments are semiannual.)Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timelineConsider a 10-year bond with current price of $98.4 and a duration of 9.1 years. Suppose the yield on the bond is 9.6% per year with continuous compounding. What is the predicted change in the price (in dollars) of the bond if the yield increases by 0.4%? (required precision: 0.01 +/- 0.01)
- Calculate the value of a ¢5,000-par-value bond paying quarterly interest at an annual coupon interest rate of 10% and having 10 years until maturity if the required return on similar-risk bonds is currently a16% annual rate paidYou can enter into a forward contract for a bond with a maturity in one year months that pays a coupon payment of $25 every six months. The bond has a forward price of $930. The current zero coupon rate for 6 months is 4% annually and the zero coupon risk free rate for one year is 5% annually (assume continuous compounding). The current price of the bond is $943. Use the equilibrium forward price equation (F=Sert) adjusted for both coupon payments to see if an arbitrage opportunity exists. If arbitrage is possible, explain the arbitrage opportunity that exists and show how the profit can be earned – make sure to explain every step in detail in realizing the profit and establishing the arbitrage. If arbitrage is not possible, show how you know it is not possible. ANSWER IN TYPING OTHER WISE DOWNVOTE YOUConsider a $100 face value 10-year bond with 8% semiannual coupons, and redemption value$120. The yield rate convertible semiannually is 6%, and the first coupon is paid on July 1st, 2018. Findthe price on November 15th, 2021.