You find a zero coupon bond with a par Value $10,000 and 13 Zero Coupon Bonds years to maturity. If the yield to maturity on this bond is 4.5 percent, what is the dollar price of the bond? Assume semiannual compounding periods.

Q: You find a zero coupon bond with a par value of $10,000 and 20 years to maturity. The yield to…

A: A zero-coupon bond is a type of bond which does not pay any periodic coupon but provides the option…

Q: You find a zero coupon bond with a par value of $10,000 and 20 years to maturity. The yield to…

A: Semi-annual yield to maturity will be (0.042 / 2) = 0.021. The number of semi-annual periods in 20…

Q: You find a zero coupon bond with a par value of $10,000 and 23 years to maturity. The yield to…

A: Calculation of Price of Bond:The price of bond is $3,593.25.Excel Spreadsheet:

Q: You find a zero coupon bond with a par value of $10,000 and 19 years to maturity.  If the yield to…

A: given data maturity value = $10,000  time period = 19 years yield to maturity = 5.7% semiannual…

Q: 00 par value bond that has an 8% coupon rate, pays a semi-annual coupon, matures 2 years from today,…

A: Macaulay duration is weighted average duration of bond considering the cash flow from bond. It is…

Q: What is the price of a three-years to maturity risky bond that pays 3% annual coupon if the callable…

A: Bond Bond is referred to as the fixed income instrument which is used to represent a loan made by an…

Q: A 10-year bond pays an annual coupon, its YTM is 10%, and it currently trades at a par value. Which…

A: YTM is 10%  The bond is trading at par means the price of the bond is the same as the face value of…

Q: A bond has a coupon rate of 8.1 percent and 5 years until maturity. If the yield to maturity is 11.3…

A: The price of the bond is calculated as present value of cash flows.

Q: A zero-coupon bond with 15 years to maturity and a face value of $1000 is priced at $239.39.  What…

A: We have; Years to maturity (N) as 15 years Face Value(FV ) as $1000 Price of Bond (Present Value )…

Q: The term structure of effective annual yield rates for zero coupon bonds is given as follows: 1- and…

A: The price of the bond will be the present value of coupons and face value at the respective…

Q: Below is a list of prices for zero-coupon bonds of various maturities. Price of $1,000 Par Maturity…

A: Given information: Par value of bond is $1,000 Coupon rate is 5% Maturity is 3 years

Q: Assume that A six-year bond with a yield of 10% (continuously compounded) pays an 8% coupon at the…

A: The bond valuation refers to the determination of the bond price, yield to maturity, bond duration,…

Q: You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to…

A: Par value of bond (F) =$ 10000 Maturity period = 24 Years Yield = 4.2% Compounding = semiannual…

Q: Suppose a 10-year, $1,000 bond with an 8.4% coupon rate and semi-annual coupons is trading for a…

A: Yield to Maturity: The yield to maturity (YTM)  is the expected return till the bond matures. In…

Q: Consider a five-year, default-free bond with annual coupons of 5% and a face value of $1,000 and…

A: Face value (F) = $1000 Annual coupon (C) = 5% of $1000 = $50 n = 5 years Let r = YTM

Q: You find a zero coupon bond with a par value of $20,000 and 16 years to maturity.     If the yield…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: Consider an inverse floating rate coupon bond with 1 year remaining to maturity. On maturity,…

A: Floating rate coupon bond means bond on which coupon rate is changed at regular intervals. Coupon…

Q: Calculate the duration of a zero-coupon bond with five years to maturity, face value of $1000, and…

A: Zero coupon bonds of the company are the debt securities on which no coupon payment is provided.…

Q: A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095.…

A: Bond is one of debt security which is issue by corporates or government for financing. Bonds provide…

Q: A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110.…

A: Bonds Price is the present value of future payments. Future payments includes coupon and face value.

Q: A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.9%, and…

A: Face value of bond is $1,000 Time period is 10 years Coupon rate is 7.9% Coupon frequency is annual…

Q: What is the yield to maturity of a nine​-year, $10,000 bond with a 5.2​% coupon rate and…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

Q: What is the semi-annual coupon bond's nominal yield to maturity, if the years to maturity is…

A: Given: Years to maturity = 15 years Coupon rate = 10% Par value = $1000

Q: Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently…

A: Solution:- Bond’s Yield to Maturity (YTM) means the rate of return the bond is providing to the…

Q: Assume a $1,000 face value bond has a coupon rate of 9.5% paid semiannually and has an eight-year…

A: Excel Spreadsheet: Excel Workings:

Q: What is the market value of a zero coupon bond with 5 years to maturity? The bond was originally…

A: Zero-coupon bonds are those bonds that are issued at a price less than their face value and redeemed…

Q: You find a zero coupon bond with a par value of $10,000 and 15 years to maturity. The yield to…

A: A zero-coupon bond is a bond that does not pay any interest during the life of the bond. The…

Q: You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. The yield to…

A: A type of bond that does not provide periodic coupon payment to its holder during its holding period…

Q: hat is the current yield for a bond that has a coupon rate of 4.5% paid annually, a par value of…

A: Current yield for a bond is a metric that helps bond holders to determine the return on investment…

Q: What is the duration of a five-year, $1,000 Treasury bond with a 10 percent semiannual coupon…

A: Here, Face Value of Bond is $1,000 Coupon Rate is 10% Coupon Compounding is Semi annual Maturity…

Q: Consider a zero coupon bond that promises to pay $100 each year for the next three years. Suppose we…

A: The price of a zero-coupon bond:  The price of the annuity is the total present value of the cash…

Q: A bond has a yield to maturity of 7 percent. The bond matures in 10 years, has a face value of…

A: Coupon payments are the interest payments received by bondholders from the date a bond is issued…

Q: Assuming annual coupon payment, a 3-year 8% coupon bond has a yield to maturity 9 percent. What is…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. What…

A: Par Value is $1,000 Time to Maturity is 8 years Coupon rate is 7%  Coupon mode is annually Selling…

Q: You are looking at a 18-year zero-coupon bond that has a yield to maturity of 5.0%. What is the…

A:

Q: The current market price of a 10-year zero- coupon bond is $1,234.567. The face value of the bond is…

A: A zero coupon bond is a bond which is issued at deep discount and redeemed at face value. There is…

Q: Consider a​ five-year, default-free bond with annual coupons of 3% and a face value of $1,000 and…

A: The yield to maturity (YTM) is the rate earned by the bondholder in the life of the bond assuming…

Q: What is the current yield on the bond?

A: The yield can be calculated in MS – Excel using the Yield function The Semi-annual Yield is -0.50%

Q: You find a zero coupon bond with a par value of $10,000 and 21 years to maturity. The yield to…

A: Given: par value = $10,000 Years =21 YTM = 4.3%

Q: A bond with a face value of $1,000 has 16 years until maturity, has a coupon rate of 7.8%, and sells…

A: face value = $1000 n= 16 years coupon rate = 7.8% price =$1071

Q: What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is…

A: Yield to maturity is the rate at which the present value of cash flows from the bond, equals the…

Q: Consider two zero coupon bonds in which you receive $100 at the maturity date, one maturing in three…

A: Current price of the bond is the present value of the future payments. Future payments included…

Q: bond

A: Introduction: Yield to maturity can be defined as a return which is expected to be earned on a bond…

Q: Consider the following $1,000 par value zero-coupon bonds. Bond Years until maturity Yield to…

A: Expectations hypothesis. The yields on long-term bonds are geometric averages of present and…

Q: You buy a bond for $955 that has a coupon rate of 6.00% and a maturity of 10-years. A year later,…

A: Bond are type of debt security which carry fixed rate of interest, issued by government or…

Q: expected yield to maturity

A: Face value= $1000 rate of coupon=8% (8% of 1000=80) By the formula YTM= C+F-P÷nF+P÷2×100…

Q: Find the duration of a 3-year bond with annual coupon payments of $80 and a par value of $1,000.…

A: A bond is a debt security that pays regular periodic coupon payments to its holder and the bond…

Q: Assume the following yield to maturities: one year YTM 6%, two year YTM 7%, and three year YTM is…

A: Answer  The price of a zero coupon bond can be calculated as: Price = M / (1 + r)n M= $1000  r= 5%…