A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in 16 years, it should sell for a price of __________ today.
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A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in
16 years, it should sell for a price of __________ today.
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- 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 percentbond 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
- 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% -Q- ramdev A $3,500 bond with a 4% coupon compounded semi-annually is currently priced to yield 8% with 16 years remaining to maturity. What is the yield to maturity six years from now if the bond price rises $225 at that time?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.
- Subject: engineering economics 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, 200 determine the yield at this price.Which of the following has the highest future value? A. $100 saved for 2 years at 10 percent interest B. $130 saved for 2 years at 7 percent interest C. $120 saved for 2 years at 8 percent interest D. $110 saved for 2 years at 9 percent interestHow much would you pay for a 4%, 10-year bond with a par (and redemption) value of $10,000 that pays a dividend semiannually if you wanted to earn an 8% return.
- Determine the future value of $580 in 3 years from today at a steady interest rate of 7.5 percent.What is the present value of $1.21 received at the end of two years if the interest rate is 10% and compounding is annual? a- 1.31 b- 1.21 c- 1.10 d- 1.00 Which of the following is a leading economic indicator? a- average prime interest rate charged by banks b- stock prices, 500 common stocks c- commercial and industrial loans outstanding d- industrial productionSuppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?
