Which of the following instruments pays the holder of the instrument a fixed interest payment every year until maturity, and then at maturity pays the holder the face value (principle) of the instrument? O A. simple loan OB. coupon bond O C. fixed-payment loan OD. discount bond Suppose that a bond has one year to maturity. The yield to maturity on the bond if it was bought for $1120.00 and has a $1100 face value with a coupon rate of 9% is 87%. (Round your response to the nearest whole number) Consider a coupon bond with a face value of $1500, one year to maturity, and a coupon rate of 5%. Given a yield to maturity of 4%, the price the bond will sell for is $. (Round your response to the nearest two decimal place)

Which of the following instruments pays the holder of the instrument a fixed interest payment every year until maturity, and then at maturity pays the holder the face value (principle) of the instrument? O A. simple loan OB. coupon bond O C. fixed-payment loan OD. discount bond Suppose that a bond has one year to maturity. The yield to maturity on the bond if it was bought for $1120.00 and has a $1100 face value with a coupon rate of 9% is 87%. (Round your response to the nearest whole number) Consider a coupon bond with a face value of $1500, one year to maturity, and a coupon rate of 5%. Given a yield to maturity of 4%, the price the bond will sell for is $. (Round your response to the nearest two decimal place)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3PA

See similar textbooks

Similar questions

K A twenty year bond with a $1000 face value was issued with a yield to maturity of 4.5% and pays coupons semiannually. After ten years, the yield to maturity is still 4.5% and the clean price of the bond is $960.09. After three more months go by, what would you expect the dirty price to be? OA. $1,000.09 OB. $970.09 OC. $980.09 O D. Cannot be determined from information given.
Consider a coupon bond that has a $1.000 par value and a coupon rate of 9%. The bond is currently selling for $1,150 and has 9 years to maturity. What is the bond's yield to maturity?
Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond’s “coupon rate”? b. What is the bond’s “current yield”? c. What is the bond’s (nominal) “yield to maturity”? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your “holding period rate of return”? Please answer all part otherwise Dounvote
Assume a bond with a remaining maturity of 3 yearsa. If the face value is $10,000 and coupon payments are $500 per year. What would the price of this bond be if the yield to maturity is 6%?b. Given your answer in (a), is the coupon rate greater, equal, or less than the yield to maturity? Why?
A 12 percent semiannual coupon bond matures in 9 years. The bond has a face value of $1,000 and a current yield (CY) of 11.62 percent. What is the bond’s yield to maturity (YTM)? how would I calculate in a BA II PLUS FINANCIAL CALCULATOR. 4
Ex: Consider a discount bond that has a 1000 TL face value. Current price of the bond is 900 TL and the bond has two years to maturity. What is the yield to maturity for this bond?
16. A U.S. corporate bond has a 10% coupon, payable semiannually. It is priced at par. What is its maturity?
The dollar amount of the yearly coupon payment expressed as a percentage of the face value of the bond is called the bond's : Select one: a. coupon rate b. face value rate 34 C. payment rate. d. maturity rate
Suppose a 10-year, $1,000 bond with a(n) 11% coupon rate and semiannual coupons is trading for a price of $970.75. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be?
Problem 3 An investor bought a discount bond with face value of $1,000 at the price of $870. The bond matures in three years. What is the rate of return? Problem 6 You lend $1,000 today. The borrower promises to return $1,500 in 8 years from now. What is the yield to maturity of this loan?
bond valuation An investor has two nonds in her portfolio, bond C and bond Z. each bond maturres in 4 years has a face value of 1000, and has a yield to maturity of 9.6% bond C pays a 10% annual coupon, while bond Z is a zeo coupon bond . b- assuming that the yield to maturity of each bond remains at9.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity year 4,3,2,1,0 b- plot the time path of price for each bond
8. Consider a 10 year 6.50% annual coupon bond whose duration is 7.50 years when required rate of return (yield to maturity) is 6.50%. Prove that this bond is immunized if you hold it for 7.50 years.