Bond prices. Price the bonds from the folloing table with quarterly coupon payments: Hint: Make sure to round all intermediate calculations to at least seve decimal places O Data Table (Click on the following icon in order to copy its contents into a spreadsheet) Years to Yield to Coupon Rate Maturity Par Value Maturity Price $5,000 00 $1,000 .00 $1,000.00 $5,000.00 11% 10 11% 7% 5% 6% 6% 10% 10 12%
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- Use the following information about a hypothetical government security dealer named M.P. Jorgan. Market yields are in parenthesis, and amounts are in millions. All securities are selling at par equal to book value. (4 points) Assets Liabilities and Equity Cash $10 Overnight repos $250 1-month T-bills (7.05%) 85 Subordinated debt 3-month T-bills (7.25%) 100 7-year fixed rate (8.55%) 140 2-year T-notes (7.50%) 90 8-year T-notes (8.96%) 100 5-year munis (floating rate) (8.20% reset every 6 months) 50 Equity 45 Total assets $435 Total liabilities &…Bato Co is currently estimating the value of its securities given the following information: Government securities currently trade at 4.5% Credit spread for Bato Co is estimated as follows based on its maturity 3 year maturity - 3.5% 4 year maturity - 5.0% 5 year maturity - 6.0% Based on current estimates the Beta of Bato is estimated at 0.75 Market risk premium for equity instruments is estimated at 6.5% The following summarizes the instruments currently issued by Bato: Bond Graphite - Php500,000 face value bond with a 5-year tenor carrying 8.0% coupon issued two years ago Bond Quartz - Php750,000 face value bond with a 4-year tenor carrying 8.0% coupon issued just today Bond Marble - Php1,000,000 face value bond with a 5-year tenor carrying a 12.0% coupon issued last year 10,000 common shares - Bato just declared a dividend of Php2.50 per share and is expected to grow by 20% over the next five years before slowing down to 5% beginning year 6 23. How much is the value of Bond…If the following quotes are on September 15, 2012, what was the coupon rate for the JD.VR bonds with $1,000 face values and semiannual payments? Company (Ticker) Coupon Maturity Last Price Last Yield $ Vol. (000s) Jim Doe (JD.VR) ? Sep 15, 2040 123.55 8.8 7,059 (Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
- 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? .Homework MBC LO6 M7-23. to the $400,000 maturity Applying Time Value of Money Concepts Complete the missing information in the table below. Assume that all bonds pay interest semiannually. Firm 1... Firm 2... Firm 3... Firm 4... Firm 5... Annual Yield Years to Maturity Coupon Rate 8.00% 15 3.00% 6.50% 0.80% 10 ? 12 20 Concents 7.00% 0.00% 5.00% 3.50% 2.00% Face Value $ 300,000 ? $ 500,000 $1,000,000 $ 500,000 Issue Proceeds ? $ 556,853 $ 468,416 $1,147,822 ? honds Ozona MineralV5 2. Go to the CANSIM database and download monthly data, from January 1976 to January 2021, on the three-month T-bill rate (series V122531) and the interest rate on long-term Canada bonds (Government of Canada benchmark bond yields, long term )(series V122544). (Note these are daily rates – convert it into monthly rates) a) Construct a yield curve by creating a line graph for January 2021 and for the same month in 2020, across all the maturities. (on excel) b) How do the yield curves compare? What does the changing slope say about potential changes in economic conditions?
- P9-16 (similar to) Question Help (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 13 years until maturity. You can purchase the bond for $1,105. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 7 percent? a. The yield to maturity on the Saleemi bonds is nothing%. (Round to two decimal places.)Nikita Enterprises has bonds on the market making annual payments, with eleven years to maturity, a par value of $ 1,000, and selling for $982. At this price, the bonds yield 7.6 percent. What must the coupon rate be on the bonds? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g 32.16.)On Thursday, July 22, 2010, you bought (traded) the FG, Inc. 6.75% corporate bonds for $101.25. The coupon payments are paid on May 31 and November 30. Using the 360-day accrual basis, calculate the invoice price of the bonds. Please use T+3 to calculate the settlement day. Group of answer choices 1023.00 1022.25 1024.10 1023.19
- You have estimated spot rates as follows: r1 = 6.80%, r2 = 7.20%, r3 = 7.50%, r4 = 7.70%, r5 = 7.80%. a. What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.) b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of : (i) 6.8%, two-year bond; (ii) 6.8%, five-year bond; and (iii) 11.8%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.)he following table summarizes yields to maturity on several 1-year, zero-coupon securities: (Click on the following icon in order to copy its contents into a spreadsheet.) Security Yield Treasury 2.860% AAA corporate 3.287% BBB corporate 3.585% B corporate 4.224% a. What is the price (expressed as a percentage of the face value) of a 1-year, zero-coupon corporate bond with a AAA-rating and a face value of ? 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? Note: Assume annual compounding. Question content area bottom Part 1 a. What is the price (expressed as a percentage of the face value) of a 1-year, zero-coupon corporate bond with a AAA-rating and a face value of ? The price, expressed as a percentage of the face value, is enter your…Nikita Enterprises has bonds on the market making annual payments, with ten years to maturity, a par value of $1,000, and selling for $956. At this price, the bonds yield 6.3 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)