9. Years to maturity. How long is it to maturity.38 for the following bonds, 37? a. How long is it to maturity 38 for the following bond? (Round to the nearest whole number.) Par Value $5,000.00 Par Value $5,000.00 Par Value $1,000.00 Coupon Rate 10% years b. How long is it to maturity 30 for the following bond? (Round to the nearest whole number.) Par Value Coupon Rate 5% $5,000.00 Coupon Rate 9% Years to Maturity years c. How long is it to maturity. 40 for the following bond? (Round to the nearest whole number.) Coupon Rate Years to Maturity 8% Years to Maturity Yield to Maturity 5% Years to Maturity Yield to Maturity 12% years d. How long is it to maturity.41 for the following bond? (Round to the nearest whole number.) years Price $8,523.49 Yield to Maturity 11% Price $2,967.07 Yield to Maturity 10% Price $825.19 Price $4,053.54 Coupon Frequency annual Coupon Frequency monthly Coupon Frequency quarterly Coupon Frequency semiannual

9. Years to maturity. How long is it to maturity.38 for the following bonds, 37? a. How long is it to maturity 38 for the following bond? (Round to the nearest whole number.) Par Value $5,000.00 Par Value $5,000.00 Par Value $1,000.00 Coupon Rate 10% years b. How long is it to maturity 30 for the following bond? (Round to the nearest whole number.) Par Value Coupon Rate 5% $5,000.00 Coupon Rate 9% Years to Maturity years c. How long is it to maturity. 40 for the following bond? (Round to the nearest whole number.) Coupon Rate Years to Maturity 8% Years to Maturity Yield to Maturity 5% Years to Maturity Yield to Maturity 12% years d. How long is it to maturity.41 for the following bond? (Round to the nearest whole number.) years Price $8,523.49 Yield to Maturity 11% Price $2,967.07 Yield to Maturity 10% Price $825.19 Price $4,053.54 Coupon Frequency annual Coupon Frequency monthly Coupon Frequency quarterly Coupon Frequency semiannual

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A bond with 18 years to maturity has an annual interest payment of $35. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places. CY:______% YTM:_____%
K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 0 2 Cash Flows $19.12 $19.12 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? a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) 39 $19.12
Assume that a bond will make payments every six months as shown on the following timeline: 0 2 21 Period Cash Flow $57.50 $57.50 a. What is the maturity of the bond (in years)? b. What is the coupon rate (in percent)? c. What is the face value? a. What is the maturity of the bond (in years)? The maturity of the bond is 11 years. (Round to the nearest integer.) b. What is the coupon rate (in percent)? The coupon rate is 10.87 %. (Round to two decimal places.) $57.50 22 $1,057.50
K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 2 Cash Flows 1 $20.34 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? $20.34 a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) b. What is the coupon rate (as a percentage)? The coupon rate is%. (Round to two decimal places.) c. What is the face value? The face value is $ (Round to the nearest dollar.) 19 $20.34 20 $20.34 + $1,000
d of each of the following bonds, if interest (coupon) is paid quarterly? g bond if interest (coupon) is paid auarterv? (Round to two decimal places) - X Years to i Data Table tate Maturity 10 (Click on the following icon in order to copy its contents into a spreadsheet.) wing bond if interest (coupon) is Years to Maturity Yiekd to Maturity Price Maturly 10 Par Value Coupon ale n Rate $3,740.00 6% 8% 5% 7% $5,000.00 3% 20 $5,000,00 $1,000.00 $5.000.00 20 30 25 55,000.00 $800.00 $4.900 00 lowing bond if interest (coupon) is Years to Matuity on Rate Print Done 5% 30
Years to Yield to Par Value Coupon Rate Maturity Maturity Price $1,000.00 9% 15 $790.00 $1,000.00 7% 25 ? $600.00 $5,000.00 8% 25 $4,500.00 $1,000.00 5% 20 $780.00
Consider the following figure which shows the relationship between a three-year bond's price (vertical axis) and the passage of time (measured in years - horizontal axis). $106.000 $104.000 $102.000 $100.000 $98.000 $96.000 $94.000 594.846 0.00 S96.688 598.567 0.50 Bond Price as Time Passes $100.4 1 $102.433 $96.433 1.00 $98.307 $100.217 1.50 $102.13 58148 2.00 Which of the following statements are consistent with the figure above? $104.148 $100.055 $106.000 $101.99 250 $103.980 This pattern of prices is consistent with a bond whose yield to maturity is below the band's coupon rate. This bond pays a coupon of $8. This bond pays coupons on an annual basis. None of the other statements are correct. 100
Question Help ▼ Assume that a bond will make payments every six months as shown on the following timeline (using six- month periods): Period 1 39 Cash Flows 20.72 $20.72 $20.72 $20 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? a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) b. What is the coupon rate (as a percentage)? The coupon rate is %. (Round to two decimal places.) c. What is the face value? The face value is $ (Round to the nearest dollar.) Enter your answer in each of the answer boxes.
You have the following information regarding an annual bond. What is the modified duration of this bond? Payment $40 YTM 6.5% Maturity (in years) 19 Par value $1,000
Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 percent, the future value of the bond (the amount the bond pays in one year) is? a. P1,560.00 b. P1,540.00 c. P1,440.00 d. 1,442.31
Vhat is the yield of each of the following bonds, E, if interest (coupon) is paid quarterly? of the following bond if interest (coupon) is paid quarterly? (Round to two decimal places.) Years to Maturity 6 Data Table Coupon Rate 6% 10 d of the following bond if interest (coupon) is (Click on the following icon o in order to copy its contents into a spreadsheet) Yedrsta Maturity 10 20 Yield to Maturity Years to Maturty Per Valud $5,000.00 $5,000.00 $1.000.00 $5,000.00 (Coupon ata 6% 8% Prico S3,740.00 $5,000.00 S800.00 $4.900.00 Coupon Rate 8% 20 5% 7% 30 25 Print Done
Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds: • Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 face value. Bond B has an 8% annual coupon, matures in 12 years, and has a $1,000 face value. • Bond C has a 12% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 10%.

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