Roadside Markets has a 7.0 percent coupon bond outstanding that matures in 20 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 6.0 percent? $993.77 $1,059.83 $1,171.57 $1,000.98 $1,115.57
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- The adjacent table presents annuity factors for various discount rates and payment periods up to 10 years. The present value of $80,000 per year for 10 years at a discount rate of 4 percent is $A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 8%, and sells for $1,100. What is the yield to maturity if interest is paid once a year? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places. What is the yield to maturity if interest is paid semiannually? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.What is the market price of a zero-coupon bond (that is, a bond that will not pay any coupon payments) that will mature in 20 years and has the face value of $1,000? Assume the yield to maturity is 6.2%, and that it will compound semiannually. Group of answer choices $372.53 $350.24 $300.27 $294.89
- 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 interestWhich of the following $1,000 face-value securities has the highest yield to maturity? A) a 5 percent coupon bond with a price of $600 B) a 5 percent coupon bond with a price of $800 C) a 5.25 percent coupon bond with a price of $1,200 D) a 5 percent coupon bond with a price of $120Henry has a five-year 1,000,000 bond with coupons at 6% convertible semi-annually. Fiona buys a 10-year bond with face amount X and coupons at 6% convertible semi-annually. Both bonds are redeemable at par. Henry and Fiona both buy their bonds to yield 4% compounded semi-annually and immediately sell them to an investor who will yield 2% compounded semi-annually. Fiona earns the same amount of profit as Henry. Calculate X.
- Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has coupon rate 4% per annum, and has dirty price $96.42. The second bond matures in twelve months, has coupon rate 11% per annum, and has dirty price $97.79. What is the twelve month spot rate with semi-annual compounding? 13.49% 13.08% 13.94% 13.44%You invest $200 in a savings account paying an annual interest rate of 2 percent. How much will your investment be worth at the end of five year, assuming all interest earned remains in the account? Multiple Choice 400.00 $220.82 $202.00 $243.33A 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% -
- Suppose a bank grants a loan to one customer for a term of five years. The customer promises the bank an annual interest payment of 10 percent. The face (par) value of the loan is $1,000 which is also the current market value as the loan’s current YTM is 10 percent. What is the loan’s duration?Find the limiting value of Macaulay duration as maturity is increased to infinity of an 8% coupon bond that is trading at a yield of 8% and pays coupons every 6 months. Please round your numerical answer to the nearest integer.Please expalin the right answer A 10-year, annual payment corporate coupon bond has an expected return of 11 percent and a required return of 10 percent. The bond's market price is: A) greater than its present value. B) less than par. C) less than its expected rate or return. D) less than its present value. E) $1,000.00.