Problem 4 - Regal Health Plans issued a ten-year, 12 percent annual coupon bond. The bond now sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060. b. What is the bond's yield to call?
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Problem 4 - Regal Health Plans issued a ten-year, 12 percent annual coupon bond. The bond now sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060. b. What is the bond's yield to call?
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- Problem 3 - Tidewater Home Health Care, Inc. has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 10 percent with interest paid annually, and a par value of $1,000. The current market price of the bond is $1,251.22. a. What is the bond's yield to maturity? b. Now, assume that the bond has semiannual coupon payments. What is its yield to maturity in this situation?Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $930 and the market's required yield to maturity on a comparable-risk bond is 14 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds?The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%.
- Problem 3. Larga Industries has outstanding $1,000 par value bond with an 8% coupon interest rate. The bond has 12 years remaining to its maturity date. a. If the interest is paid annually, find the value of the bond when the required return is (1) 7%, (2) 8%, (3) 10%. Indicate for each case in part whether the bond is selling at a discount, at a premium, or at its par value. c. Using the 10% required return, find the bond's value when interest is paid semi-annually. b.You are given the following information about a bond: Face value $1,000 Coupon rate 5% annual Redemption Value $1,200 Tenor 4 years This bond is purchased to yield an annual effective rate of 3%. (i) Calculate the Macaulay Duration of the bond. (ii) Calculate the Modified Duration of the bond. (iii) Calculate the Convexity of the bond. (iv) Calculate the forward price for the bond for a contract with expiration in 2 years, immediately after a coupon payment.Fingen's 18-year, $1,000 par value bonds pay 13 percent interest annually. The market price of the bonds is $1,140 and the market's required yield to maturity on a comparable-risk bond is 10 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? enter your response here%
- Question 4: Adani ltd. issued a bond having the maturity of five years with a face value of Rs. 800 and agreed coupon rate 10%. Assume the interest rate (yield to maturity) is 8%. The coupon payment is made half-yearly.1. Calculate the price of the bond.2. Calculate the duration of the bond.3. Calculate the modified duration of the bond.4. If the interest rate goes to 8.20 %, what is the new price of the bond?5. If the interest rate goes down by 0.30%, what is the new price of the bond? Excel Required !!Question 1. Duration and Banking Consider a 5-year bond with annual coupon payments. The bond has a face value (prin- cipal) of $100 and sells for $95. Its coupon rate is 3%. (The coupon rate is the ratio between the coupon value and the face value). The face value is paid at the maturity year in addition to the last coupon payment. 1. Calculate the bond's yield to maturity (YTM) and duration using its YTM. 2. Suppose the bond's YTM changes in the same way as a 5-year T-bill interest rate. Use the bond's modified duration to evaluate the relative change in the 5-year bond's value if the interest rate on 5-year T-bills falls by one basis point, that is, by 0.0001. This part was extracted from the balance sheet of the First Bank of Australia: Assets (Billion AUD) Bond 80 Liabilities (Billion AUD) Fixed-rate liabilities 60 where "Bond" here refers to the bond we specified above and the fixed-rate liabilities (banks future payment obligations) have an average duration of 4 years and YTM of…Fingen's 16-year, $1 comma 000 par value bonds pay 14 percent interest annually. The market price of the bonds is $1 comma 070 and the market's required yield to maturity on a comparable-risk bond is 11 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? enter your response here%
- sebe 5. Compute the yield to maturity of a discount bond selling for $15,000.00 with a face value of $18,000,00 in one year. SHOW YOUR WORK TO RECEIVE CREDITA $6,000 bond that carries a 4.00% coupon rate payable semi-annually is purchased 7 years before maturity when the yield rate was 4.50% compounded semi-annually. a. Calculate the purchase price of the bond. $ Round to the nearest cent b. What is the amount of discount or premium on the bond? (click to select) amount isQuestion 2: If Jackson’s food’s bond has 6 years remaining to maturity. Interest is paid annually, bond has a par value of $1000 and the coupon interest rate is 8%, and the market interest rate of 9%. Calculate the bond’s price? If Jackson’s food’s bonds have 20 years remaining to maturity. Interest is paid annually, the bonds have a $ 1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. Calculate the yield to maturity? Differentiate between the discount bond and the premium bond