Question
Finance Questions Please help: Q1: Suppose a? ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for $1,035.78. a. What is
Finance Questions Please help:
Q1:
Suppose a? ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for $1,035.78.
a. What is the? bond's yield to maturity? (expressed as an APR with semiannual? compounding)?
b. If the? bond's yield to maturity changes to 9.5% ?APR, what will be the? bond's price?
Q2:
Suppose a? five-year, $1,000 bond with annual coupons has a price of $900.69 and a yield to maturity of 5.9%. What is the? bond's coupon? rate?
The bound's coupon rate is ??% (round to the three decimal places)
q3:
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until? maturity, a face value of $1,000?, and a coupon rate of 7.2% ?(annual payments). The yield to maturity on this bond when it was issued was 5.9%. What was the price of this bond when it was? issued? (round to the nearest cent.)
Q4:
A? BBB-rated corporate bond has a yield to maturity of 11.1%. A U.S. treasury security has a yield to maturity of 9.7%. These yields are quoted as APRs with semiannual compounding. Both bonds pay? semi-annual coupons at a rate of 10.4% and have five years to maturity.????
a. The price of the treasury bond as a percentage of face value is ???%. ?(Round to three decimal? places.)
b. What is the price? of the? BBB-rated corporate? bond expressed as a percentage of the face? value is ??%? (Round to three decimal? places.)
c. What is the credit spread on the BBB? bonds?
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