Question
Answer all plz 1.Bond A pays annual coupons, pays its next coupon in 1 year, matures in 18 years, and has a face value of
Answer all plz
1.Bond A pays annual coupons, pays its next coupon in 1 year, matures in 18 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 17 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 6.86 percent and is priced at 1,037.56 dollars. Bond B has a coupon rate of 7.94 percent. What is the price of bond B?
2.Castor owns one bond A and one bond B. The total value of these two bonds is 1,886.52 dollars. Bond A pays semi-annual coupons, matures in 14 years, has a face value of 1,000 dollars, and pays its next coupon in 6 months. Bond B pays annual coupons, matures in 13 years, has a face value of 1,000 dollars, has a yield-to-maturity of 11.62 percent, and pays its next coupon in one year. Both bonds have a coupon rate of 10.84 percent. What is the yield-to-maturity for bond A? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
3.Arjen owns investment A and 1 bond B. The total value of his holdings is 2,251 dollars. Investment A is expected to pay annual cash flows to Arjen of 212.8 dollars per year with the first annual cash flow expected later today and the last annual cash flow expected in 3 years from today. Investment A has an expected return of 11.17 percent. Bond B pays semi-annual coupons, matures in 19 years, has a face value of $1000, has a coupon rate of 9.32 percent, and pays its next coupon in 6 months. What is the yield-to-maturity for bond B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
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