Question 5 A Treasury bond is quoted at a price of 103.949. What is the market price of this bond (in S) if the face value is $5,000 ? not round any intermediate calculations. Round your final answer to 2 decimal places and enter it in the box belot
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Question 5 A Treasury bond is quoted at a price of 103.949. What is the market price of this bond (in S) if the face value is $5,000 ? not round any intermediate calculations. Round your final answer to 2 decimal places and enter it in the box belot
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- Preview ●●● E View Edit File V Go Tools 6. Problem 5-12 (Bond Yields and Rates of Return) Window Help Screen Shot 2023-03-06 at 8.44.56 PM H Problem Walk-Through a. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % 2 b. What is the bond's current yield? Do not round intermediate calculations. Round your answer to two decimal places. % eBook Bond Yields and Rates of Return A 25-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $950. (Assume that the bond has just been issued.) d. What is the band's yield to call? Do not round intermediate calculations. Round your answer to two decimal places. % HARD c. What is the bond's capital gain or loss yield? Capital loss yield, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. % $ Save & Continue Continue without saving Q 0…Question 1 You find a bond quote online listing a bond's price as "100.0". The bond's current price is $ Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is 12.3456, 12.3456%, or $12.3456, you should enter 12.35).a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it be if there were only 9 or 8 years to maturity? Use the worksheet to compute the bond issue prices and enter them in the spaces provided. Bond issue price (9 years to maturity) __________________ Bond issue price (8 years to maturity) __________________ b. Compare these prices to the bond-carrying values found in the effective interest amortization schedule you originally printed out in requirement 3. Explain the similarity. c. Click the Chart sheet tab. The chart presented shows the price behavior of this bond based on years to maturity. Explain what effect years to maturity has on bond prices. Check your explanation by trying 8% as the effective rate (cell E10) and clicking the Chart sheet tab again. Also try 9%. When the assignment is complete, close the file without saving it again. Worksheet. Modify the BONDS3 worksheet to accommodate bonds with up to 20-year maturity. Use your new model to determine the issue price and amortization schedules of a 2,000,000, 18-year, 10% bond issued to yield 9%. Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as BONDST. Hint: Expand both amortization schedules to 20 years. Expand the scratch pad to 20 years. Modify FORMULA1 in cell F17 to include the new ranges. Chart. Using the BONDS3 file, prepare a line chart that plots annual interest expense over the 10-year life of this bond under both the straight-line and effective interest methods. No Chart Data Table is needed. Put A23 to A32 in the Label format and then select A23 to A32, D23 to D32, and B40 to B49 as a collection. Enter all appropriate titles, legends, formats, and so forth. Enter your name somewhere on the chart. Save the file again as BONDS3. Print the chart.
- Acme Chemical, Inc. is a major manufacturer of chemical products for the agricultural ndustry, including pesticides, herbicides and other compounds. Due to a number of law suits elated to toxic wastes, Acme Chemical has recently experienced a market re-evaluation of its common stock. The firm also has a bond issue outstanding with 10 years to maturity and an annual coupon rate of 5 percent, with interest paid semi annually. The required nominal market annual interest rate on this bond has now risen to 10 percent due to the high risk level associated vith this firm. The bonds have a par or face value of $1,000. 1. Label each of the variables that you would use to determine the value of this bond in the market today: N (time periods until maturity) PMT (periodic interest payment) I per (periodic market interest rate) EV (future value to be received when the bond matures) = 2. Based on the variables that you have identified in Question #1, what is the market value. today (the present…3:54 You are considering the purchase of a Pure Discount Bond with a Face Value of $10,000, which matures in 78 days. In the markets this bond is selling for $9,927.78. If you purchase the bond at this price what is the Yield-to-Maturity (YTM) on the investment? (The answer is a percent, round your answer to two decimal places, e.g. 4.75) Numeric ResponseK Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 0 2 5 Period $19.53 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Cash Flows View an example Get more help. ★ a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) A 6 1 MacBook Pro & 7 $19.53 * 8 9 C 59 $19.53 60 $19.53+$1,000 Clear all BUB 0 {
- 1 ences The bonds of Generic Labs Inc. have a conversion premium of $60. Their conversion price is $25. The common stock price is $21.00. What is the price of the convertible bond? (Do not round intermediate calculations and round your answer to 2 decimal places.) Mc Graw Hill Convertible bond price Prev 2 of 10 MacBook Air Next >Listen Assume that there is a bond that pays $20.00 at the and of year 2, and $105.00 at the end of year 7. It sells at a total =$(20.00+105.00). The Macauley duration of the bond is? Answer with two digits decimal accuracy. Blank Excel Worksheet Your Answer39 tion Bonds with a face value of $670,000 and a quoted price of 97 have a selling price of (Round your answer to the nearest whole number - zero decimal places). Your Answer: Answer
- Question 5: A Treasury Bill quotation appeared in WSJ on January 28, 2022 (Prices are for January 27, 2022) Calculate the following and show the main calculator keys in your solution. 1/26/2023 0.735 0.725 +0.095 0.741 a. Days to maturity (Keep in mind one day adjustment) b. Asked and Bid Price c. Bond Equivalent Yield (BEY) d. Effective Yieldestion list Question 7 K Refer to the bond listing table below to determine the daily high of the KFT.GX bond? Click the icon to view the bond listing from the table below. The daily high of the bond is % (Type an integer or a decimal.) Bond Listing from Wall Street Journal Online 1 2 3 4 5 6 7 8 9 Issuer Name CITIGROUP Symbol CHRY Coupon Maturity Rating Moody's/S&P/ Fitch Low 8.500% GENERAL GEHMX 5.500% May 2019 Jan 2020 A3/A/A+ Aa2/AA+/- - High 119.268 116.615 117.733 0.448 105.307 102.374 103.097 -0.028 Last Change ELECTRIC CAPITAL KRAFT FOODS KFT.GX 5.375% BANK OF BAC ICB 7.625% AMERICA ANHEUSER- BUD ID 5.375% BUSCH COMCAST CORP CMCD.GC 5.150% Mar 2020 Baa1/BBB+/BBB+ GOLDMAN GS.IAR 5.375% Mar 2020 A1/A/A+ Feb 2020 Baa2/BBB-/BBB- Jun 2019 A2/A/A+ Jan 2020 Baa2/BBB+/- - 106.081 101.999 103.411 0.687 113.172 111.839 112.847 0.283 104.693 104.061 104.526 -0.466 104.832 100.923 101.225 0.441 -0.592 99.750 95.636 96.642 SACHS GP BANK OF BAC IOP 4.500% Apr 2019 A2/A/A+ 101.750 99.288…Question 3: Answer the following Twa questions: I. You would like to purchase a Treasury bill that has a $10,000 face value and is 68 days from maturity. The current price of the Treasury bill is $9,875. C (CLO-3) 2. a) What are the differences among T-bills, T-Note, and T-bonds? Answer: