Suppose that a 15-year bond with a face value of 3000 dollars is redeemable at par and pays semiannual coupons that increase by 1.7 percent per coupon. If the last coupon is for 80 dollars and the yield rate is 8.2 percent convertible semiannually, what is the book value of the bond immediately after the 11th coupon is paid? Answer= dollars.
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?Suppose that a 12-year bond pays semiannual coupons that increase by 4 dollars with each coupon. If the first coupon is for 30 dollars, the yield rate is 7.6 percent convertible semiannually, and the redemption value is 2000 dollars, find the price of the bond. Answer =Suppose that a 16-year bond with a face value of 1000 dollars is redeemable at par and earns interest at 9.2 percent convertible semiannually. If the yield rate is 7.1 percent convertible semiannually, what is the book value immediately before the payment of the 15th coupon? Answer = dollars.
- Suppose that a 11-year bond with a face value of 3000 dollars is redeemable at par and pays semiannual coupons that increase by 1.4 percent per coupon. If the last coupon is for 75 dollars and the yield rate is 7.7 percent convertible semiannually, what is the book value of the bond immediately after the 12th coupon is paid? Answer = dollars.Consider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the rate of return of the bond? What is the yield to maturity of the bond?Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.9%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ (Round to the nearest cent.)
- (b)You purchase the $110 bond today and sell it off next year at $108. What is its one-year rate of return (assume the bond’s coupon rate is 5% and its face value is $100)? If the expected inflation over the course of the year is 2%, what would the ex-ante real rate of return be for the bond on part (b)?Suppose that a 10-year bond pays semiannual coupons that increase by 4 dollars with each coupon. If the first coupon is for 25 dollars, the yield rate is 8.4 percent convertible semiannually, and the redemption value is 2000 dollars, find the price of the bond.Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline
- Consider a bond with a principal of $1,000 that pays a coupon of $100 per year. If the bond matures in one year and the current interest rate is i = 3%, what is the price (present value) of the bond? Round to the nearest cent. Answer:Suppose a bond is priced at $1108, has 18 years remaining until maturity, and has a 8% coupon, paid monthly. What is the amount of the next interest payment (in $ dollars)? $__________.Suppose that a 13-year bond with a face value of 2500 dollars is redeemable at par and pays semiannual coupons that increase by 1.4 percent per coupon. If the last coupon is for 70 dollars and the yield rate is 7.1 percent convertible semiannually, what is the book value of the bond immediately after the 11th coupon is paid?