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What's the current yield of a 3.8 percent coupon corporate bond quoted at a
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- which of the following bonds should you buy when interests rates are expected to go up? a) 5 year , 15% coupon b) 5 year 5% coupon c) 25 year 15% coupon d) 25 year 5% couponCalculate the present value of a $1,300 discount bondwith seven years to maturity if the yield to maturity is 8%.Define the term effective interest rate, commonly known as annual effective yield, or annual percentage yield (APY)?
- What causes the yield on a discount bond to exceed the coupon rate on a bond?Suppose Ford Motor Company issues bonds with a face value of $500 and an annual coupon payment of $20 What is the interest rate Ford is paying on the borrowed funds? The interest rate is percentHow much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 5%? You would pay $. (Round your response to the nearest penny.) Part 2 If competing yields are expected to change to 8%, what is the current yield on this same bond assuming that you paid $4,000? The current yield is %.(Round your response to the nearest integer.) Part 3 If you sell this bond in exactly one year, having paid $4,000, and received exactly one coupon payment, what is your total return if competing yields are 8%? Your total return is %.
- How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 5%? You would pay $. Part 2 If competing yields are expected to change to 8%, what is the current yield on this same bond assuming that you paid $4,000? The current yield is %.(Round your response to the nearest integer.) Part 3 If you sell this bond in exactly one year, having paid $4,000, and received exactly one coupon payment, what is your total return if competing yields are 8%? Your total return is %.Consider a fixed-payment security that pays $500 at the end of every year for ten years. If the rate of discount is 7 percent, find the present value of the bond? Show your work..The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then falls by $200, what will be the interest rate yield to a new buyer of the bond? Multiple Choice 10 percent 15 percent 9.4 percent 12.5 percent 18.8 percent
- A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8%. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places. What is the yield to maturity if the bond is selling for $900? What is the yield to maturity if the bond is selling for $1,000? What is the yield to maturity if the bond is selling for $1,100?Assume a 10-year, $1,000 par value bond with a 10 percent annual coupon if its required rate of return is 10 percent what is the value of the bond? What would happen to the bonds' value if inflation fell, by 3 %? Would we now have a premium or a discount bond?What's the taxable equivalent yield on a municipal bond with a yield to maturity of 3.5 percent for an investor in the 33 percent marginal tax bracket? (Round your answer to 2 decimal places.)
