From the following information compute the zero-rate for 1.5-years. Face value $100 $100 $100 Coupon semi-annually Current price Years to maturity 0.5 1.0 $94 $89 $94.84 $4 1.5 (A) 11.50% (B) 12.38% (C) 11.65% (D) 6.11%

Q: Yield to maturities on zero coupon T-bill soro Year YTm -3.100 3.30o 3. 3.226 5- 3.100 3.02. whof is…

A: using the PV function in excel

Q: - The "price value of a basis point" (PVBP) measure changes by one basis point (one one-hundredth of…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: A $3600, 6.9% bond with semi-annual coupons redeemable at par in 5 years was purchased at 100.1.…

A: Par value (F) = $3600 Coupon rate = 6.9% Annual coupon amount (C) = 3600*0.069 = $248.40 Years to…

Q: Calculate the current yield and the yield to maturity

A: Excel Spreadsheet:

Q: Find the price for a 7.5% coupon (paid on a semi-annual basis); $1,000 par value bond under the…

A: Face value= $1000 Coupon rate= 7.5%, semi annual= 3.75% Coupon payment= 1000 x 3.75%= $37.5   Bond…

Q: Coupon Years to Yield to Coupon Frequency Par Value Rate Maturity Maturity Price $5,000.00 ? 10 9%…

A: Coupon rate can be calculated by dividing PMT with face value. First we have to calculate PMT value…

Q: Years to Yield to Par Value Coupon Rate Maturity Maturity Price $1,000.00 9% 15 ? $790.00 $1,000.00…

A: Bonds are issued by corporates and the government to raise finance. The Yield to Maturity(YTM) of…

Q: Face value Coupon semi-annually 0. Current price Years to maturity $100 $94 0.5 $100 0. $89 1.0 $100…

A: Zero rate is interest rate which makes the price of a pure discount bond Equal to PV of its face…

Q: Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is…

A:

Q: On 1 july 2018 BMw ltd issues $2 million in 10 year debentures that pay interest each six months at…

A: 1)

Q: Calculate, using effective annual rate of 5%, the convexity of the following assets. (i) 11-year…

A: Meaning of Bond Convexity Convexity is a measure of the curvature, or the degree of the curve, in…

Q: Calculate the price of the 30-year, 8% coupon bond for a market interest rate of 3% per half-year.…

A: Price of bond =Present value of coupon payment +Present value of par value

Q: Assume ten-year bond issued three years ago that is callable at 103 five years after issuance.  The…

A: Total Duration of Bond is 10 years Callable price is 103 Current price is 95 Coupon rate is 6%…

Q: what is the price of this debt by general floating equation (long cut formula)?

A: Bond or debenture valuation refers to a method which is used to compute the current value or present…

Q: Find the macaulay and modified duration of 20 year, $1,000 par value of bond 10% coupon, priced to…

A: The question is based on the concept for calculation of Macaulay and modified duration of the bond.…

Q: r1=0.07, r2=0.065, r3=0.06, r4=0.05, r5=0.475, r6=0.04 Find current price P(t-0) with F=5000 with…

A: We can find the annual Y rate by taking the average of all 6-year rates. We can apply the formula to…

Q: On 1 July 2018 BMW Ltd issues $2 million in 10-year debentures that pay interest each six months at…

A: Issue price of the debenture is sum of present value of all interest payments and face value of the…

Q: Piermont Clothing's current bond price is $1,060. The coupon rate 7%, coupons are paid semi-…

A: Using excel RATE function

Q: Calculate the YTM                          II.          Calculate YTC

A: Yield To Maturity: It is the expected rate of return on the bond given the bond is held till…

Q: 5. years. At a purchase price of 870, the yield rate is i The coupon rate is i-0.02. Calculate i A…

A: Calculate the annual coupon amount (PMT) by multiplying the face value of the bond which is 1,000…

Q: McDonald's Corporation's $1000.00 par value zero-coupon note matures in six years. What is the yield…

A: Zero-coupon bond are type debt instruments which are floated at discount but redeemed at par. The…

Q: What is the discount yield, bond equivalent yield, and effective annual return on a $3 million…

A: Calculation of the discount yield is as follows:                   Hence, the discount yield is…

Q: Years to Yield to Par Value Coupon Rate Maturity Maturity Price $1,000.00 8% 20 5% $1,000.00 9% 15…

A: Let the par value be denoted by F. Let coupon payment be denoted by C. Yield to maturity = r Years…

Q: Compute the price of a 5-year 6.4% coupon with par value if 100$ that pays interest annually…

A: Bond valuation (BV) refers to a method or technique which is used to compute the current value or…

Q: with a 476 Coupon rate for $4,730. JpəA uə1 e pəseuɔund asní sn alculate the yield rate that he will…

A: Price of bond is present value of par value +Present value of coupon payment.

Q: Suppose a 19-year, 11% coupon bond selling for $1,233.64 is first callable in 6 years at $1,055.…

A: The given problem can be solved using RATE function in excel. RATE function computes yield to…

Q: On 1 July 2018 BMW Ltd issues $2 million in 10-year debentures that pay interest each six months at…

A: Concept Debenture is a form of loan or debt raised by company through issuance of debentures.…

Q: Assuming semiannual compundingwith 15 years to maturity paying 1,000.00 at maturity for YTM of 7%,…

A: Bonds are the financial debt instruments which are issued by the financial institution to raise…

Q: Spot rate, forward rate, and yield to maturity One year 6% coupon bond priced at par. Two year 5%…

A: Solution- Three different coupon bond price at par this means their par rates are given. It is to be…

Q: Consider a 4% coupon, 10-year Treasury note whose full price 103.3521 and is yielding 3.62%. The…

A: The answers to the given question is provided in the order below

Q: What is the value of a 15-year, $1000 par value, 1.5% coupon bond with annual payment if the…

A: Bond valuation is a way to determine the theoretical fair value (or par value) of a particular bond.…

Q: Using a two-year semiannual 8% coupon bond, 1000 par, with a 5% YTM. For this question find all…

A: Modified Duration = Duration / (1+(ytm/no. of coupons per year))

Q: Calculate the modified duration for a 8 year, 7.86% coupon bond with a yield to maturity of 7.49%.…

A: Modified duration establishes a relationship between change in the interest rate and market price of…

Q: What is the annual coupaon rate rounded to 2 decimal places id ABC Inc. recently issued a 20-year…

A: Coupon = ? Time Period = 20 years × 2= 40 Semi Annual Periods Interest Rate = 9%÷2 = 4.5% per…

Q: Assume the first-year, second-year, third-yea and fourth-year hazard rates are 1.5%, 2%, 2.5%, and…

A: Solution- $100×60%=6060×3%=$12

Q: A zero-coupon bond has a par value of $1,000, costs $588.11 today, and matures in 16 years. Assume…

A: In the above question we need to find out the yield to maturity on a zero coupon bond. Other details…

Q: Consider an investor who purchases a Treasury inflation-indexed note with an original principal…

A: Treasury inflation-index note guarantees return more than the inflation index and consumer price…

Q: A 30,000, 6% bond with coupons payable quarterly is redeemable at par at the end of 8 years. The…

A: Face value = 30,000 Coupon rate = 6% Quarterly coupon amount = 30,000*0.06/4 = 450 Years to maturity…

Q: Kas a $1,000 par value, 12 years to maturity, and an 8% annual coupon and sells for $980. ed What is…

A: (a) Given:  Face value =$1000 Present value =$980 Time =12 years Coupon rate =8% So, coupon payment…

Q: What is the Macaulay duration of a bond with a coupon of 5.8 percent, eleven years to maturity, and…

A: The weighted average term to maturity of a bond's cash flows is known as the Macaulay duration. The…

Q: Use the following information to answer.  Coupon Payments are annual unless otherwise indicated!…

A: Bonds are the financial debt instruments which are issued by the financial institutions to raise…

Q: P1,000 face-value bond with coupon rate of 8% paying interest semi-annual arket price of P1,050.…

A: Interest on bond will be calculated on face value. Interest amount =face value*interest rate…

Q: An-year annual coupons bond with coupon rate r per year. The yield rate is 0.10. Calculate the…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.