Calculate the value of a bond that matures in 19 years and has a $1,000 par value. The annual coupon interest rate is 16 percent and the market's required yield to maturity on a comparable-risk bond is 14 percent. Question content area bottom Part 1 The value of the bond is $enter your response here.
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- Describe and differentiate between a bonds (a) current yield and (b) yield to maturity. Why are these yield measures important to the bond investor? Find the yield to maturity of a 20-year, 9 percent, 1,000 par value bond trading at a price of 850. Whats the current yield on this bond?Data table ↑ The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100face value of a two-year, zero-coupon, risk-free bond? The price per $100 face value of the two-year, zero-coupon, risk-free bond is $ (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) YTM 1 4.98% 2 5.48% 3 5.78% Print Done 4 5 5.96% 6.09% (Round to the nearest cent.) - XConsider a bond with a current value of $928.01. It is a 10-year, $1,000 bond, coupons paid semi-annually, and has a 7% coupon rate. a. The bond's yield to maturity (YTM) is: b. What will be its value (per $1,000 of face) if its YTM changes to 10%? Question content area bottom Part 1 a. The YTM is enter your response here%. (Round to two decimal places.) b. Value (per $1,000 of face): $enter your response here. (Round to the nearest cent.)
- K 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 {2. Consider a bond with a 7.5% annual coupon rate and a face value of $1,000. Calculate the bond price and duration & show your work. Years to Maturity Interest rate Bond Price Duration 4 6. 6. 9. What relationship do you observe between yield to maturity and the current market value? What is the relationship between YTM and duration?The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100 face value of a two-year, zero-coupon, risk-free bond? The price per $100 face value of the two-year, zero-coupon, risk-free bond is $ Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) 1 2 YTM 4.99% 5.53% Print 3 5.72% Done (Round to the nearest cent.) 4 5.92% 5 6.07% X
- Intro You purchase the following bond. The bond makes interest payments on April 10 and Oct. 10 of every year: 1 Purchase date 8/19/2021 2 Maturity date 10/10/2037 3 First call date 4/10/2029 4 Coupon rate 2.8% 5 Price 83.7 6 Face value 100 7 Payment frequency 8 Day count basis 30/360 9 Call price 134.18 What is the bond's yield to maturity using Excel's YIELD function? What is the bond's yield to call using Excel's YIELD function?Data table 不 The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? a. Compute the yield to maturity for each bond. The yield on the 1-year bond is ☐ %. (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) Price (per $100 face value) 1 $95.42 2 3 4 5 $90.99 $86.47 $81.58 $76.46 Print DoneThe following bonds are offered for your investment portfolio. Compute for the YTM and Value of the bond. Write you final answers to the table provided below. Bond Bond Value Coupon Rate Interest Due Maturity Period Required Rate of Return Offered Price K P10,000 15% Annually 12 yrs. 13% 98-1/2 A 25,000 8% Annually 15 yrs. 9% 102-3/4 P 20,000 10% Semi-Annual 8 yrs. 12% 105 O 15,000 13% Semi-Annual 6 yrs. 16% 96-1/4 I 10,000 13% Quarterly 5 yrs. 12% 103-1/2 Based on the above Bonds for investment, compute for the following: Bond Yield to Maturity Value of Each Bond Decision: Accept or Reject K A P O I Note: For bond K and P used the exact YTM, while for A, O and I compute the Approximate YTM.
- Find the current yield (as a %) of a bond whose coupon rate is listed as 6.875 and currently selling at a premium of 106.875. Round to the nearest tenth percent. % Need Help? Read It Watch It Master ItSuppose you are reviewing a sheet for a bond portfolio and see the following information. These bonds have a par value of 100 and make semiannual coupon payments. Bond Annual coupon rate Number of years Annual yield to maturity A B с 6% 8% 10% 2 3 5 5% 10% 8% What is the bond portfolio's yield to maturity based on the IRR calculation?Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 2 Price (%) 48 80.57 97.19 134.92 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Bond Coupon YTM (%) 2 4 6.00 % 7.42% 8 7.01 %