Question
1. An annual coupon bond has a face value of $1,000 and a coupon rate of 4.8%. Time to maturity is 21 years and the
1. An annual coupon bond has a face value of $1,000 and a coupon rate of 4.8%. Time to maturity is 21 years and the current yield to maturity is 5.6%. What percentage of this bond's value comes from its face value payment at maturity? Answer in percent, rounded to one decimal place (e.g., 54.67% --> 54.7)
2. A semi-annual coupon bond has a face value of $1,000 and a coupon rate of 4.3%. Time to maturity is 24 years and the current yield to maturity is 7.6%. How much is this bond worth? Round to the nearest cent.
3. A Japanese government bond with a $1,000 face value has a 1.64% annual coupon rate. The bond matures in 8 years. The current YTM on the bond is -0.7% (negative!). What is this bond worth? Round to the nearest cent.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started