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- Par Value Coupon Rate Years to Maturity Yield to Maturity Price 5,000.00 11%108% 1,000.005%305% 1,000.0012%510% 1,000.009%59% Bond prices. Price the bonds from the following table with semiannual coupon payments. Find the price for the bond in the following tableAssume that the financial anagement corporation'shas 1000 par value bond had a 5.70% coupon, matures on May 15,2020, has a current price quote of 97.708 and has yield to maturity (YTM) of 6.034%. Answer the following question:1. What was the dollar price of bond?2. What is the bond's current yield?3. Is the bond selling at par, at discount or at a premium?4. Compare the bond's current yield calculated in part B to its YTM and explain why its differ. using excelPar Value Coupon Rate Years to Maturity Yield to Maturity Price 1,000.00 8%106% 1,000.006%108% 5,000.009%207% 5,000.0012%305% Bond prices. Price the bonds from the following table with annual coupon payments: Find the price for the bond in the following table
- Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round your answers to the nearest cent.) Company CouponRate MarketPrice TimeSince LastInterest AccruedInterest Commissionper Bond BondsSold TotalProceeds Company 3 6.55% 91.50 21 days $ $9.00 10 $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…What is the yield to maturity on a 10-year, 9%annual coupon, $1,000 par value bond that sellsfor $887.00? That sells for $1,134.20? What does the fact that a bond sells at a discount orat a premium tell you about the relationshipbetween rdand the bond’s coupon rate?
- The 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 response here%. (Round to three decimal places.)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 $1,000? 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.1.Calculate the yields to maturity for the following bonds. The prices are stated per 100 of par value. Bond Coupon Payment Per Period Nurber of Periods to Maturity Price A 3.5 4 103.75 B 2.25 6 96.50 C 0 60 22.34
- Assume that the financial anagement corporation's has 1000 par value bond had a 5.70% coupon, matures on May 15,2020, has a current price quote of 97.708 and has yield to maturity (YTM) of 6.034%. Answer the following question: 1. What was the dollar price of bond? 2. What is the bond's current yield? 3. Is the bond selling at par, at discount or at a premium?The bond certificate with a par value P1,000,000 and a bond rate of 10 % was sold for P1,064, 176.58 . Calculate the yield that the investor obtained from his investment .A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 7 years at $1,063.91, and currently sell at a price of $1,119.63. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: YTC: % -Select- v % What return should investors expect to earn on these bonds? I. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. II. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. III. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC.