Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.3 percent, what is the value of these bonds?
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Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.3 percent, what is the
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- Ten - year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 9.7 percent, what is the value of these bonds?(Round answer to 2 decimal places, e. g. 15.25.)Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 10.3 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond $In May 2000, the U.S. Treasury issued 30-year bonds with a coupon rate of 6.25%, paid semi-annually. A bond with a face value of $1,000 pays $31.25 (1,000 × 0.0625 / 2) every six months for the next 30 years; in May 2030, the bond also repays the principal amount, $1,000. 1. What is the value of the bond if, immediately after issue in May 2000, the 30-year interest rate increases to 7.5%? 2. What is the value of the bond if, immediately after issue in May 2000, the 30-year interest rate decreases to 5.0%? 3. On a graph in Excel, show how the value of the bond changes as the interest rate changes (plot the value as a function of the interest rate). At what interest rate is the value of the bond equal to its face value of $1,000?
- A $1,000 face value bond issued by the Purud Company currently pays total annual interest of $80 per year and has a 13-year life. a-What is the present value, or worth, of this bond if investors are willing to accept a 10 percent annual rate of return on bonds of similar quality if the bond is a Eurobond? b-How would your answer in (a) change if the bond is a U.S. bond? c-How would your answer in (b) change if, one year from now, investors only required a 6 percent annual rate of return on bond investments similar in quality to the Purud bond? d-Suppose the original bond can be purchased for $925. What is the bond's yield to maturity?The U.S. Treasury has issued 10-year zero coupon bonds with a face value of $1,000. Assume that the bond compounds interest semiannually. What will be the current market price of these bonds if the yield to maturity for similar investments in the market is 6.75 percent? $860 O $520 O $604 O $515One-year government bonds yield 6 percent and 2-year government bonds yield 5.5 percent. Assume that the expectations theory holds. What does the market believe the rate on 1-year government bonds will be one year from today?
- A one-year U.S. Treasury bond and a one-year corporation bond both promise to pay $11,934 next year. The corporation bond carries a risk premium of 15 percent over Treasury bond. The price of the Treasury bond today is $11,700. What is the price of the corporation bond? Price of the corporation bond dollars.Suppose a U.S. government bond pays $2,155.40 in 5 years at 6% interest. Calculate the present value of the bond.A U.S. Government T-bond matures in 24 years and has a face value of $100. The bond has a coupon rate of 4% paid semi-annually (the next coupon is due in 6 months). The yield on the bond is 5%. If coupons are re-invested at 2.8332% per annum, then how much interest is earned on re-invested coupons over the life of the bond? Calculate the interest as a percentage of the total cash flows received at maturity by the bondholder. Option: A. 16%, B. 17%, C. 18% & D. 19%
- Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.4 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond 24 eTextbook and MediaA 15-year Treasury bond is issued with face value of $1,000, paying interest of $46 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate? (Enter your answer as a percentage rounded to 1 decimal place.) Coupon rate ?%An MNC issues ten-year bonds denominated in 1,000,000 Mexican pesos at par. The bonds have a coupon rate of 13 percent. If the peso depreciates from $0.06 to $0.05 over the lifetime of the bonds, and if the MNC holds the bonds until maturity, what will the financing cost to the MNC be?