You have a treasury bond that pays $100 one year from today and $1,100 two years from today. You notice that the yield-to-maturity on a one year- zero coupon treasury bond is 1% and the yield-to- maturity on a two year-zero coupon treasury bond is 2%. What should the price of your bond be? 1, 177.44 1, 246.37 1, 156.30 1, 223.46 O O

Q: Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Consider a coupon bond with a face value of $900, one year to maturity, and a coupon rate of 6%…

A: The following formula will be used:

Q: a. What is the duration of a two-year bond that pays an annual coupon of 11.5 percent and has a…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: A bond has a time to maturity of 12 years, a coupon rate of 5% with interest paid quarterly, a…

A: Current price of the bond refers to the net present value of bond that is being computed after…

Q: uppose the yield on a two-year-old Treasury bond is 5 percent and the yield on a one-year…

A: A risk-free bond that is issued by the government, and also has a more than 20 years maturity period…

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: Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for…

A: Par value = $1000 Coupon rate = 8.5% Semi annual coupon amount = 1000*0.085/2 = $42.50 Years to…

Q: Suppose a seven-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading with a…

A: Bond is said to be selling at discount when price of the bond in secondary market falls below the…

Q: Given a bond with face value $100 and with maturity in 4 years, that pays annual coupon of $28 in…

A: Bonds are interest-paying securities that are issued by a corporation or the government to raise…

Q: What would the price be today of a 10-year bond issued 7 years ago with 3 years of maturity left…

A: The price of the bond is the sum of the present value of expected cash flows from the bond at a…

Q: Consider a bond that promises to pay (a coupon) $100 one year from now, (a coupon) $100 two years…

A: given data future value of coupons                      100 1 year from now…

Q: You own a $1,000 par value bond with 20 years to maturity that is paying an annual coupon rate of…

A: Price=Coupon Payment×1-1+YTM-nYTM+Face Value1+YTMn

Q: A bond has a $1,000 par value, 22 years to maturity, and a 7.00% annual coupon and sells for $875.…

A: Yield to Maturity (YTM) = Coupon Payment + (Face Value - Market Value)/Years to Maturity/Face Value…

Q: You have just purchased a 7-year zero-coupon bond with a yield to maturity of 11% and a par value of…

A: FORMULA FOR PRICE OF ZERO COUPON BOND: price=par1+rnwhere,r= yield to maturityn = time to maturity

Q: Suppose a 10​-year, $1,000 bond with a 9% coupon rate and semiannual coupons is trading for a price…

A: a) Computation:

Q: Consider a coupon bond that has a $900 par value anda coupon rate of 6%. The bond is currently…

A: Given information: Par value of bond is $900 Coupon rate is 6%, Bond selling price is $860.15 Number…

Q: What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for…

A: Bond’s yield to maturity is the rate of return expected by an investor who has invested in the bond…

Q: What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 5.90%?…

A: Par value of Bond = 1000 Yield to maturity = 5.90% Bond maturity in years = 7

Q: A bond that matures in 8 years has a par value of 1000 and a annual coupon payment of 70; its market…

A: Using excel PV function to calculate price of the bond.

Q: Suppose a 10​-year,  $1,000 bond with a 10% coupon rate and semiannual coupons is trading for a…

A: The price of bond can be calculated by using this formula Bond price =Coupon[1-1/(1+YTM)n] /YTM +…

Q: A 5-year bond with a face value of $1,000 and a coupon rate of 4% has just been issued at a…

A: The rate of return on bond calculates the percentage return earned on bond due to capital…

Q: Today, you just paid $924.22 to buy a semiannual bond with 6 years to maturity. This bond carries 4%…

A: To determine the yield to maturity, we first need to compute the coupon payment amount, number of…

Q: Consider a bond that pays annually an​ 8% coupon with 20 years to maturity. The percentage change in…

A: Note: It has been assumed that the face value of the bond is $1000 Given Information Coupon Rate =…

Q: Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon…

A: Maximum Price of Bond = Present Value of future cash flows of bond (discounted at required yield)…

Q: You have a treasury bond that pays \$100$100 one year from today and $1,100 two years from today.…

A: The price of the bond can be computed using the YTM and calculating the PV of the cash flow arising…

Q: A 2-year, zero coupon Treasury bond with a maturity value of $1,000 has a price of $873.4387. A…

A: Treasury bonds are the debt securities with the maturity period exceeding 20 years and is issued by…

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 with face value $1,000 has a current yield of 7.1% and a coupon rate of 9.1%. a. If…

A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays…

Q: A five-year P1,000 par value bond pays a 6.50% annual coupon. Given a YTM of 8.0%, what is the price…

A: Yield to maturity(YTM) is the discount rate that returns the bonds market price. The formula to…

Q: What is the yield to maturity on a 10-year, 9%annual coupon, $1,000 par value bond that sellsfor…

A: Given that;Par value is $1000Present value or selling value is $887Time period is 10 years

Q: What is the bond's nominal yield to call?

A: Given, coupon = 8.25% semiannual YTM = 6.5% call Price = 1120 FV = 1000 maturity = 15 years year to…

Q: Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for…

A: Here,

Q: ear U.S. treasury bond that pays a coupon of 10 in one year from now and a coupon and principal of…

A: The given problem can be solved using PV function in excel. PV function computes current price  for…

Q: You find a bond with 27 years until maturity that has a coupon rate of 9.0 percent and a yield to…

A: Bond price:  The yield-to-maturity of a bond and its price are adversely connected. The price of a…

Q: A bond has a 12% coupon rate. The coupon is paid semi-annually and the last coupon was paid 79 days…

A: Information Provided: Coupon rate = 12% The last coupon paid = 79 days Par value = $1000

Q: You are considering a bond with the following characteristics: R100 Par Value 10% Annual Coupon 5…

A: The Price of Bond is calculated with the help of following formula  Price of Bond = Present Value of…

Q: What is the price of a 3 year , 8.2% coupon rate ,$1000 face value bond that pays interest quarterly…

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

Q: Suppose a​ ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: A bond has a coupon rate of 11.6 percent and 4 years until maturity. If the yield to maturity is…

A: Coupon rate = 11.6%  Time period = 4 years  Yield to maturity = 10.5%  Assume Face value of bond =…

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

A: Working note:

Q: bond has a Macaulay duration of 12.00 and is priced to yield 10.0​%. If interest rates go up so that…

A: % Change is price = - Modified Duration *Change in yield = [- 12/(1 + 0.10) ] * 0.5 = (- 12/1.10) *…

Q: Consider a bond with a zero percent coupon rate with 20 years to maturity and a face value of…

A: Given: Face value = $1,000 Years = 20 YTM = 6%

Q: A bond with face value $1,000 has a current yield of 6.9% and a coupon rate of 8.9%. a. If interest…

A: In the given question we need to calculate the bond price and yield to maturity.

Q: Suppose a ten-year, $1,000 bond with an 8.8% coupon rate and semiannual coupons is trading for…

A: Time period = 10 year  Coupon rate = 8.8%  Selling price = $1,034.64

Q: One bond has a coupon rate of 7.4%, another a coupon rate of 9.2%. Both bonds pay interest annually,…

A: Excel Spreadsheet: