Which of the following is the name of the semiannual payment of $20 that you receive on a bond you own? a. Face Value b. Discount c. Yield d. Call Premium e. Coupon
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H5.
Which of the following is the name of the semiannual payment of $20 that you receive on a bond you own?
a. Face Value
b. Discount
c. Yield
d. Call Premium
e. Coupon
Explain with details and also explain wrong options
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- You are given the following prices and cash flows associated with bonds. CF stands for cash flow. Bond Price Today CF Year 1 CF Year 2 CF Year 3 A 105.185 10 10 110 B 90.371 100 0 0 C 91.784 5 105 0 D X 15 15 115 What is the current price of Bond D as per the no-arbitrage principle? In other words, what is the value of X?What relationship between the required return (ytm) and the coupon interest will cause a bond to: a) Be priced at a discount¿ FALL2022 b) Be priced at a premium? c) Be priced at its par value?From page 9-2 of the VLN, what is the first thing you want to identify when approaching a bond problem? Group of answer choices A. Annual bond or semiannual bond B. Whether the market rate is different from the stated rate. C. The cash flows provided by the bond. D. The company's debt to equity ratio.
- The following is a T-bond quote (par value $1,000) from the WSJ (8/31/2018). Use the information in the quote to answer the question. Maturity Coupon Bid Asked Chg Asked Yield 8/31/2,034 11.68 104:15 104:20 -14 ??? How much is the premium or discount of this bond? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16). Use a negative sign to represent a discount.)Give typing answer with explanation and conclusion Consider a coupon bond with coupon payment=4.25, M=100, and n=2. Suppose ?1 = 4% and ?2 = 4.24%. Consider a forward contract for the delivery of the coupon bond in one period from today. Calculate the forward price using the following two approaches: 1) use the forward rate to price the forward contract; 2) use the cost of carry approach: spot-forward parity adjusted for the coupons.If a P1,000 bond sells for P1,125, which of the following statements are correct? I. The market rate of interest is greater than the coupon rate on the bond. II. The coupon rate on the bond is greater than the market rate of interest. III. The coupon rate and the market rate are equal. IV. The bond sells at a premium. V. The bond sells at a discount. a. I and IV b. I and V c. II and IV d. II and V
- Consider the following zero coupon bonds:Bond Yrs to Mat. Yield to Maturitya 1 0.0433b 2 0.046c 3 0.0495d 4 0.0511e 5 0.0531f 6 0.0555What is the forward rate for year5 Group of answer choices 0.0630 0.0593 0.0648 0.0611 0.0668 Please answer fast i give you upvote.The following information about bonds A, B, C, and D are given. Assume that bond prices admit noarbitrage opportunities. What is the convexity of Bond D?Cash Flow at the end ofBond Price Year 1 Year 2 Year 3A 91 100 0 0B 86 0 100 0C 78 0 0 100D ? 5 5 105What are the cash flows you receive from a $1,000 coupon bond with a 6% coupon rate and: a) semiannual coupon payments; b) annual coupon payments; Calculate the price of the bond if its yield to maturity is 3%. Calculate the price of the bond if its yield to maturity increases to 5%. Compare your answers and explain why the prices are different. Is the bond trade at discount, par, or premium in each case?
- If you have a coupon bond, its face value is $1,000 and the coupon rate is 4%. Complete the following table, then calculate the rate of return for the bond. If you know that it was purchased at the nominal value, comment on the results. due date return at maturity the price 2 0.02 3 0.04 5 0.06 Present Value Annuity value % n value % n 0.961 0.02 2 1.97 0.02 2 0.925 0.04 2 1.89 0.04 2 0.889 0.04 3 2.78 0.04 3 0.906 0.02 5 4.71 0.02 5 0.747 0.06 5 4.21 0.06 5Suppose you are an analyst with the following data: rRF = 5.5%, rM - rRF=6%, b = 0.8,D1 = $1.00, P0 = $25.00, g = 6%, and rd = firm’s bond yield = 6.5%. What is this firm’scost of equity using the CAPM, DCF, and bond-yield-plus-risk-premium approaches?Use the midrange of the judgmental risk premium for the bond-yield-plus-risk-premiumapproach.Calculate the accurate interest in dollars, and the total proceeds in dollars of the Bond sale. Round your answer to the nearest cent? ( for accured I got $2.49 it’s wrong ) (For total I got 1,027.35 it’s wrong ) If you can’t see the coupon rate it’s 10.525%