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- Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity. The bonds have a face value of 1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?A three-year bond with $1,000 face value and 10% coupon rate is sold for $1,000 today. If one year later the market interest rate increases to 15%, then this bond will have a market price of _______ next year.A $1,000 par value bond with an annual 14% coupon rate will mature in 20 years. Coupon payments are made semiannually. What is the market price if the required annual market rate is 7%?
- A 10-year, 12% semiannual coupon bond currently sells for $1,100. If the yield to maturity in the next 6 years equal its current yield, what will the price be 6 years from now?A $1,000 face (par) value bond is paying an annual $50 coupon and maturing in 3 years. If the discount rate is 7%, what is the bond's value today?The KLM bond has a 8% coupon rate (with interest paid semi-annually), a maturity value of P1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price? **coupon rate (semi-annual payment)
- A bond pays a coupon of $35 semi-annually. The bond matures in 9 years and you will receive $1,000 at that time. If the required return is 9%, how much should you be willing to pay for the bond today? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. AnswerWhat is the Macaulay duration in years of a 3% coupon bond with 2 years to maturity and a face value of $100? Assume the bond is trading at a yield of 7%, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to 2 decimal places.Consider a level coupon bond that pays $500 every six months (beginning in the next period) for 3 years, plus an additional $1,000 in 3 years. Assume a constant annual interest rate of 10%. What is the price of the bond today?
- Bond C has a $1,000 face value and provides an 8% annual coupon for 30 years. The appropriate discount rate is 10%. What is the value of the coupon bond?Suppose the coupon rate is 10% issue at par $1000 and for 15 years. Let say the market interest rate increase to 15% during the life of the bond. a) What is the interest payment for this bond annually b) What is the interest payment on semi-annually c) How much should the investors pay for this bondi.e. the valueA ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis
