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- What is the percentage change in price for a zero coupon bond if the yield changes from 6.5% to 5.5%? The bond has a face value of$1,000 and it matures in 10 years. Use the price determined from the first yield, 6.5%, as the base in the percentage calculationA zero-coupon bond6 is a popular variation on the bond theme for some investors. What should be the price of an eight-year zero-coupon bond with a face value of $ 1.000 if similiar, nonzero-coupon bonds are yielding 6% annual interest?If a one year discount bond that pays $1000 at maturity, is held for the entire year ,and the purchase price is $950 ,then the interest rate is... %
- A coupon bond has two years to maturity, a face value of $1000 and a coupon rate of 2%. The yield to maturity is 3%. After one year, the yield to maturity falls to 2%. Find the rate of capital gain for the first year.Consider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the rate of return of the bond? 10% 0% -10% 20%The current interest rate on a 10-year coupon bond (with face value = $1,000 and annual coupon rate = 3.25%) is 1.31%. The buyer of this bond will receive $ _________ (keep one digit after the decimal point) payment from the bond issuer every year before maturity while holding the bond.
- A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 1. 6% - 2. 8% - 3. 10% -Question 2 Consider a bond with par value of $1,000 paying a coupon rate of 10% per year semi annually when the market interest rate is only 4% per half-year. The bond has 1 year until maturity. Find the bond’s price today and 6 months from now after the next coupon is paid. ...A four-year bond has an 6 percent coupon rate and a face value of $1,000 . If the bond's current price is $817.75 , calculate the yield to maturity of the bond (assuming annual interest payments). A) 8 percent B) 10 percent C) 12 percent D) 6 percent
- Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 9% coupon rate ($45 interest payment every six months), and semiannual interest payments. Five years after the bonds were purchased, the going rate of interest on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (five years after the purchase)?(a) P = $890(b) p = $1,223(c) P = $1,090(d) p = $1,128Consider a bond with a face value of $2,136 that pays a coupon of $100 for 10 years. Suppose the bond is purchased at $400, and can be resold next year for $450. What is the rate of return of the bond? a. 1.125% b. 1.375% c. 25% d. 37.5%Consider a 30-year US corporate bond paying 4.5% coupon. The bond is currently priced at $958. Find its yield to maturity. Express your answers as a percentage Please give correct answer sir
