Bond Value Coupon rate Interest Due Maturity Require Rate of Return Offered Price 10,000 8% Semi-Annual 10 yrs 10% 98 3/4 Required: Calculate the Exact and Approximate YTM.
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Bond Value |
Coupon rate |
Interest Due |
Maturity |
Require |
Offered Price |
10,000 |
8% |
Semi-Annual |
10 yrs |
10% |
98 3/4 |
Required: Calculate the Exact and Approximate YTM.
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- Bond Value Coupon rate Interest Due Maturity Require Rate of Return Offered Price 20,000 11% Every 3 months 5yrs 12% 88 1/4 Required: Calculate the Exact and Approximate YTM.Bond QuoteDEERE, Inc.Current Price: $98.00Face Value: $100.00Annual Coupon Rate: 3%Coupons Per Year: 2Issue Price $99.77Issue Date: Jan 1, 2017Maturity Date: Jan 1, 2024Next Coupon Date: June 30, 2022Coupon Payments Remaining: 4Please fill in the following information to determine the current Yield to Maturity. The rate and YTM canbe estimated to two decimal places (i.e. 1.23%). Fill In N I PV FV PMT Yield to MaturityBalance Sheet (dollars in thousands) and Duration (in years) Duration AmountT-bills. 0.5 $ 90T-notes 0.9 55T-bonds 4.393 176Loans 7 2,724Deposits. 1 2,092Fed. funds 0.01 238Equity 715What is the average duration of all the assets? What is the average duration of all the liabilities? What is the FI’s leverage-adjusted duration gap? What is the FI’s interest rate risk exposure? If the entire yield curve shifted upward 0.5 percent (i.e., ΔR/(1 + R) = 0.0050), what is the impact on the FI’s market value of equity? If the entire yield curve shifted downward 0.25 percent (i.e., ΔR/(1 + R) = −0.0025), what is the impact on the FI’s market value of equity?
- The excel version is available as an attachment to this assignment for additional analysis. Years Face Coupon Market Security Rating Maturity Value Rate Price Treasury 1 $ 1,000 0.00% $ 966.66 Treasury 3 $ 1,000 2.00% $ 939.06 Treasury 5 $ 1,000 4.40% $ 932.42 Treasury 10 $ 1,000 7.20% $ 1,007.12 Treasury 20 $ 1,000 6.60% $ 908.25 Corp A A 5 $ 1,000 8.10% $ 1,000.00 Corp What is the Yield To Maturity of Corporation A’s bond issue?Q: ram stimate the standard deviation of a bond's returns if it had the following annual returns over the past 3 years: -15.00%, 2.00%, and 20.00% ?Abend las a duration of 6.222 and the current yield-to inaturity i5.39%if the cument bonds peice is51,150.17what is predicted to be the bond new price if interest rates suddenly iomp upwards by 0.57e? State your anwer as a dollar amount with two decimal places
- (PLEASE READ THIS DIRECTION)Rules for Bond Valuation Problem Solving:a. For the "PV FACTOR in computing the PV of the coupon and PV for the maturity value/ principal use until 8-9th decimal place" before multiplying the coupon payment or future value.Example: ___x 2.123456789 or 22.12345678b. For "COMPOUNDED RATES" include all decimals in the rate (do not round off).Example semi-annual: 13%/2 =0.065c. For the "VALUE OF THE BOND/ PRICE OF THE BOND" round off your answers and final answers into whole numbers.Example: 824.59= 825 3. Assume that Greenwich and Pizza Hut have similar P100,000 par value bond issues outstanding. The bonds are equally risky. Pizza Hut bond has an annual coupon rate of 8 percent and matures 20 years from today, the nominal annual rate of return is 12%. Greenwich's bond has a coupon rate of 8 percent, with interest paid semiannually, matures in 20 years, and nominal required rate of return 12 percent on a semi-annual basis. What is the DIFFERENCE in current…(PLEASE READ THIS DIRECTION)Rules for Bond Valuation Problem Solving:a. For the "PV FACTOR in computing the PV of the coupon and PV for the maturity value/ principal use until 8-9th decimal place" before multiplying the coupon payment or future value.Example: ___x 2.123456789 or 22.12345678b. For "COMPOUNDED RATES" include all decimals in the rate (do not round off).Example semi-annual: 13%/2 =0.065c. For the "VALUE OF THE BOND/ PRICE OF THE BOND" round off your answers and final answers into whole numbers.Example: 824.59= 825 1. A bond issued by Delta Corporation matures in 12 years. It has a 12.5 percent annual coupon rate and a face value of P10,000. The bond has a discount rate to maturity of 9.5 percent. What is the price of Omega's bond today?(PLEASE READ THIS DIRECTION)Rules for Bond Valuation Problem Solving:a. For the "PV FACTOR in computing the PV of the coupon and PV for the maturity value/ principal use until 8-9th decimal place" before multiplying the coupon payment or future value.Example: ___x 2.123456789 or 22.12345678b. For "COMPOUNDED RATES" include all decimals in the rate (do not round off).Example semi-annual: 13%/2 =0.065c. For the "VALUE OF THE BOND/ PRICE OF THE BOND" round off your answers and final answers into whole numbers.Example: 824.59= 8251. Charlie Corporation is a chemical company. The company issued an outstanding bond with a P100,000 par value at 15-year maturity date. The coupon rate is 8%, and interest is paid quarterly. The required nominal interest rate on this borrowings has now increased to 16 percent . What is the current market value of the bond?
- (PLEASE READ THIS DIRECTION)Rules for Bond Valuation Problem Solving:a. For the "PV FACTOR in computing the PV of the coupon and PV for the maturity value/ principal use until 8-9th decimal place" before multiplying the coupon payment or future value.Example: ___x 2.123456789 or 22.12345678b. For "COMPOUNDED RATES" include all decimals in the rate (do not round off).Example semi-annual: 13%/2 =0.065c. For the "VALUE OF THE BOND/ PRICE OF THE BOND" round off your answers and final answers into whole numbers.Example: 824.59= 825 2. Your sister has been offered a 5-year bond with a P1,000 par value and a 7 percent coupon rate. This bond's interest is paid semi-annually. If your sister is to earn a nominal rate of return of 9 percent, compounded semi-annually, how much should she pay for the bond?Firm A’s bond coupon rate = 10.20%, a yield to maturity = 10.55%, market price = $850. The annual interest payment =? A) $121.0. B) $102. C) $102.75. D) $106.90.A fixed rate bond with notional 1 pays annual coupons of c at times T1,T2,...,Tn whereTi+1 =Ti+1andnotional1attimeTn. a) Write down the bond price Bc^(FXD)(t) at time t ≤ T in terms of ZCBs.