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(3 points) Calculate the price of the Sleeping Beauty bonds (per $100 par value) if the annual yield (semi-annually compounded) is 6.55%. Hint: It
(3 points) Calculate the price of the Sleeping Beauty bonds (per $100 par value) if the annual yield (semi-annually compounded) is 6.55%. Hint: It is recommended that you use the annuity formula to calculate the value of the coupons and then add back the present value of the par value. Round to the nearest cent (e.g. 99.25). Numeric Answer: Unanswered Submit 1.4 Homework Unanswered (3 points) Calculate the price of the Sleeping Beauty bonds (per $100 par value) if the annual yield (semi-annually compounded) is 8.55%. Hint: It is recommended that you use the annuity formula to calculate the value of the coupons and then add back the present value of the par value. Round to the nearest cent (e.g. 99.25). Question 1 In July 1993, Disney issued a bond with $300,000,000 in face value. The coupon rate was 7.55%, paid semi-annually. The maturity was July 15, 2093. (100 years) The yield at issuance was 7.55%, so the bond was issued at par. Assume a $100 par value throughout. 1.2 Homework Unanswered (4 points) Approximate the convexity (based on semi-annual yields) using the approximation formula. For Delta_y use 0.001 that is in your calculations use semi-annual yields of 3.875% and 3.675%). Round to four digits after the decimal (e.g. 10.1234). Numeric Answer: Unanswered 1.3 Homework Unanswered Submit (3 points) Calculate the price of the Sleeping Beauty bonds (per $100 par value) if the annual yield (semi-annually compounded) is 6.55%. Hint: It is recommended that you use the annuity formula to calculate the value of the coupons and then add back the present value of the par value. Round to the nearest cent (e.g. 99.25). Numeric Answer: [Fullscreen
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