The prices of the three US Treasury zero-coupon bonds that mature in 6, 12 and 18 months are: Time to Maturity 6 months 12 months 18 months Price $1,043.15 $1,112.12 $1,000 $999 $997.53 $991 What is the price of the 18-month, 2.75% US Treasury coupon bond that pays semi- annual coupons if the face values of all bonds are $1,000?
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- Suppose you purchase a 8-year AAA-rated Swiss bond for par that is paying an annual coupon of 8 percent and has a face value of 1500 Swiss francs (SF). The spot rate is US $0.66667 for SF1. At the end of the year, the bond is downgraded to AA and the yield increases to 10 percent. In addition, the SF depreciates to U.S. $0.74074 for SF1. 8. What is the loss or gain to a Swiss Investor who holds this bond for a year? b. What is the loss or gain to a U.S. investor who holds this bond for a year? (For all requirements, input the amount as a positive value. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g.. 32.16)) a b Loss Gain Answer is complete but not entirely correct. to Swiss investor to US investor (974) % 0:29The nominal annual interest rate on 6-month USD Treasury Bill is 4.50%. The spot rate of the Euro is $3.8643, and the 6-month forward rate of the Euro is $3.8880. If interest rate parity holds, what is the nominal annual interest rate on a risk and default free 6-month Euro bonds? a. 12.35% b. 3.25% c. 10.20% d. 2.20%The nominal annual interest rate on 6-month USD Treasury Bill is 4.50%. The spot rate of the Euro is $3.8643, and the 6-month forward rate of the Euro is $3.8880. If interest rate parity holds, what is the nominal annual interest rate on a risk and default free 6-month Euro bonds?Immersive Reader A. 12.35% B. 3.25% C. 10.20% D. 2.20%
- The nominal annual interest rate on 6-month USD Treasury Bill is 4.50%. The spot rate of the Euro is $3.8643, and the 6-month forward rate of the Euro is $3.8880. If interest rate parity holds, what is the nominal annual interest rate on a risk and default free 6-month Euro bonds?The Republic of the Philippines issued P1o00,000 T-Bill that can be bought for 98. This T-Bill will mature 90 days. Compute for the bond equivalent yieldThe Omani Company has two bond issues outstanding. Both bonds pay OMR (1000) annual interest plus OMR (10000) face value at maturity. Bond L has a maturity of 20 years, sell after three years issued, and Bond S has a maturity of 1 year. What will be the value of each of these bonds when the going rate of market interest is 12%? what can you conclude from the results of the above questions regarding the bond risks?
- Suppose you purchase a 5-year AAA-rated Swiss bond for par that is paying an annual coupon of 5 percent and has a face value of 2,100 Swiss francs (SF). The spot rate is U.S. $0.66667 for SF1. At the end of the year, the bond is downgraded to AA and the yield increases to 7 percent. In addition, the SF depreciates to U.S. $0.74074 for SF1. a. What is the loss or gain to a Swiss investor who holds this bond for a year? b. What is the loss or gain to a U.S. investor who holds this bond for a year? (For all requirements, input the amount as a positive value. Do not round intermediate calculations, Round your answers to 2 decimal places. (e.g., 32.16)) b. to Swiss investor to U.S. investor % %A five-year, 9.0 percent Euroyen bond sells at par. A comparable risk five-year, 10.5 percent yen per dollar dual currency bond pays $ 843.33 at maturity. It sells for ¥110,000. What is the implied ¥ per $ exchange rate at maturity? Hint: The dual-currency bond pays 10.5 percent interest on a notional value of ¥100,000, whereas the par value of the bond is not necessarily equivalent to ¥100,000.Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $859,794.00 $541,670.22 $1,031,752.80 $730,824.90 Based on your calculations and understanding of semiannual coupon bonds, complete the following statements: • Assuming that interest rates remain constant, the T-note’s price is expected to increase or decrease? • The T-note described is selling at a discount, premium or par? .
- If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells today for $85, what is the interest rate on the bond? 0 15% 17.6% 1.18% It depends on what the Federal Reserve sets as its target rate for the Federal Funds Rate.Even though most corporate bonds in the United States make coupon payments semiannually, bonds Issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 12 years to maturity, and a coupon rate of 6 percent paid annually. If the yield to maturity is 9 percent, what is the current price of the bond? Multiple Cholce $745.92 €824.44 €1,255.52 €785.18 €1,030.00What is the implicit (dollar) interest for the first year of an American Century bond currently valued at $512.96? Note: This American Century bond pays no coupons but will pay $1,000 when it matures in 19 years. a. $5.35 b. $18.34 c. $9.73 d. $10.70 e. $9.17