27282925885323323242535116171819202145PriceYTMSemi-annFace valuMaturityPrice4-$99.004.00%3.57%E3. What is the semi-annual coupon rate on the following government bonds?10010Price $700.00Maturity 9.094045Sheet1MaturityPriceAnalysis of fixed in....xlsx AType here to search2-$99.67YTMSemi-annFace valuMaturityPrice4.30%4.53%100105MaturityPricePrice $880.00Maturity 3.25933320$137.39YTMSemi-annFace valuMaturityPrice4. How many years are the following zero coupon bonds, if they all yield 4% and have a face value of $1000Et5%5.00%10025100Price $900.00Maturity 2.686348JMYTMSemi-annFace valuMaturityPriceK6%5.96%1003097Price$952.16Maturity 1.254190LM

GIven The YTM 4% Face value 100

3. What is the semi-annual coupon rate on the following government bonds? YTM Semi-ann Face valu Maturity Price 4.00% 3.57% 100 10 95 YTM Semi-ann Face valu Maturity Price 4.30% 4.53% 100 15 105 YTM Semi-ann Face valu Maturity Price 5% 5.00% 100 25 100 YTM Semi-ann Face valu Maturity Price 6% 5.96% 100 30 97 4. How many years are the following zero coupon bonds, if they all yield 4% and have a face value of $1000 $700.00 Price Maturity 9.094045 Price $880.00 Maturity 3.259333 Price $900.00 Maturity 2.686348 Price $952.16

3. What is the semi-annual coupon rate on the following government bonds? YTM Semi-ann Face valu Maturity Price 4.00% 3.57% 100 10 95 YTM Semi-ann Face valu Maturity Price 4.30% 4.53% 100 15 105 YTM Semi-ann Face valu Maturity Price 5% 5.00% 100 25 100 YTM Semi-ann Face valu Maturity Price 6% 5.96% 100 30 97 4. How many years are the following zero coupon bonds, if they all yield 4% and have a face value of $1000 $700.00 Price Maturity 9.094045 Price $880.00 Maturity 3.259333 Price $900.00 Maturity 2.686348 Price $952.16

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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Y8 Here are data on $1,000 par value bonds issued by Caterpillar and Intel. Assume you are thinking about buying these bonds. CaterpillarIntelCoupon5%4%Years to Maturity810Required Return4%5% Answer the following questions: a) Assuming interest is paid annually, calculate the values of each of the bonds b) How would these values change if the coupon was paid semiannually ( c) Assume that the bonds with the coupon that is paid annually (point a) are selling for the following amounts: · Caterpillar $1,050 · Intel $980 What are the expected rates of return (YTM) for each bond? d) How would change the price of each bond if the required rate of return (current 4% for Caterpillar and 5% for the Intel and with annual coupon) increased by 2% What will you deduce about the relationship between market interest rate and bond prices? .
Problem5: OnJanuary1,2021,BLITZENCompanyissued10%bondsdatedJanuary1,2021withafaceamountof ₱8,000,000.ThebondsmatureonDecember31,2026.Forbondsofsimilarriskandmaturity,the marketyieldis14%.Interestispaidsemi-annuallyonJune30andDecember31.(Useatmost,4decimal placesforPVfactors) Preparethejournalentriesfor2021 Computeorprovidetheanswersforthefollowing: DeterminethepriceofthebondsonJanuary1,2021. Howmuchistheinterestexpensefortheyearended,December31,2021? Howmuchistheinterestexpensefortheyearended,December31,2022? WhatisthecarryingamountofthebondsonDecember31,2022?
a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating?b. What is the credit spread on AAA-rated corporate bonds?c. What is the credit spread on B-rated corporate bonds?d. How does the credit spread change with the bond rating? Why? Security Yield Treasury 3.120AAA corporate 3.874BBB corporate 4.521B corporate 5.328
The prices of 1, 2, 3, 4, and 5-year zero coupon government bonds are 0.9542, 0.9036, 0.8516, 0.7881 and 0.7161,respectively (per $1 face value). What is the par coupon on a 4- year coupon bond selling at par? Question 13 options:4.7998% 5.1889% 5.4772% 6.0586% 6.7377%.
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