Question
1. What is the price of a bond with the following features? 5 years to maturity, face value of $1000, coupon rate of 2% (annual
1.What is the price of a bond with the following features?5years to maturity, face value of $1000, coupon rate of 2% (annual coupons) and yield to maturity of 1.7% APR.
2.You own a bond with the following features: 7 years to maturity, face value of $1000, coupon rate of 2% (annual coupons) and yield to maturity of 1.5%. Just after you purchase the bond, the yield to maturity rises to 5.4%. What is the capital gain or loss on your bond?
If the answer is a capital gain just enter the number. For example 581.
If the answer is a capital loss enter a negative number. For example -841.
3.You own a bond with the following features:7 years to maturity, face value of $1000, coupon rate of 3% (annual coupons) and yield to maturity of 6%. If you expect the yield to maturity to remain at 6%, what do you expect the price of the bond to be in two years?
4.Smiths company is selling a bond with the following features: 9 years to maturity, face value of $1000, coupon rate of 2% (semiannual coupons) and yield to maturity of 5.7% APR. What is the price of Smiths company bond?
5. Jones and Company sold a bond with the following features: 10 years to maturity, face value of $1000, coupon rate of 7% (semiannual coupon) and current price of $1300. What is the APR for Jones and Companys bonds?
Please show the steps by using financial calculator, thanks!
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