6) Using the appropriation method, calculate yield to the maturity of a debenture with a face value of $25,000 has a coupon rate of 12%. The period to maturity is 10 years, and the current market price is $28,000. ○ 9.07 О 10.07 11.07 О 12.07
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- Suppose that $10,000 of a 6-year fixed-principal Treasury note with a coupon rate of 6.5% is purchased by a dealer firm to create zero-coupon Treasury securities. Let’s assume the appropriate annual yield is 8%. What should be the current value of the zero-coupon Treasury security created from the fifth coupon payment?what is the yield to maturity if it has 15 years to mature and 4.75% as coupon paid semiannually and face value of 10000$ with a current trading price of 2246.88$8. On January 28, 2011 a T-bill was issued with a face value of $170000 and a maturity date of July 22, 2011. If it was purchased for $164862.17 on the date it was issued, what yield is the investor realizing?
- A 1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed at par at the end of this period. If it is sold now for 1,390, determine the yield at this price. (I ONLY NEED THE CASH FLOW DIAGRAM PLEASSEEE DREW BELOW I )In a given securities market, an investment at time t=0 of £95 generates a return of £105 at time t=2 years. However, an investment of £95 at time t=2 (which is agreed from the outset) generates a return of £108 at time t=5 years. Given that the 5-year par yield is 5.3%, calculate, to two decimal places, the current price of a 5-year bond of £10,000 nominal paying coupons at a rate of 4.5% per annum and redeemed at 95%.A Treasury bill has a bid yield of 5.44% and an ask yield of 5.29%. The bill matures in 69 days. Assume a face value of $10,000. If you sell it now, how much will you receive?
- A Treasury STRIPS matures in 12 years and has a yield to maturity of 7.00 percent. Assume the par value is $55,000. What is the current price of this STRIPS?A debenture has the following characteristics principal amount shs 1000 term to maturity 20 years coupon rate 16 % interest payments semiannual required : calculate the price of the debenture if the market interest rate is 20% 16% 12% Comment o the above resultsAn investor buys a ($1000 FV) Treasury Strip security with 11 years to maturity at a yield of 5.1%. Two years later the yield to maturity on the strip is 4.0% and the investor decides to sell. What is the compounded annual rate of return on the investment over the investment horizon? For simplicity assume all yields in the question are quoted with annual compounding. Enter your answer as percent to two decimal places, but do not include the % sign.
- A commercial bill with a face value of $100,000 and 270 days to maturity is purchased with a yield to maturity of 4.65 per cent per annum. After the bill has been held for 110 days it is sold at a yield of 4.5 per cent per annum. What rate of return was earned by the original holder of the bill; that is, what is the holding period yield? Show your working.Suppose that the coupon rate for a TIPS is 5%. Suppose further that an investor purchases $10,000 of par value (initial principal) of this issue today. Also, there is deflation for the entire period of investment (you can assume 2% average deflation on annual basis). What is the principal that will be paid by the Department of the Treasury at the maturity date?Suppose you purchase a T-bills that is 125 days from maturity for $9,765. The T-bills has a face value of $10,000.a. Calculate the T-bills’s quoted discount rate. b. Calculate the T-bills’s annualized rate.c. Who are the major issuers of and investors in money market securities?