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I have 14 questions attached. Simple investment questions 1. A Treasury STRIPS is quoted at 76.116 and has 9 years until maturity. What is the

I have 14 questions attached. Simple investment questionsimage text in transcribed

1. A Treasury STRIPS is quoted at 76.116 and has 9 years until maturity. What is the yield to maturity? YTM= 2. What is the yield to maturity on a Treasury STRIPS with 8 years to maturity and a quoted price of 58.779? YTM= 3. A Treasury bill with 88 days to maturity is quoted at 99.540. What is the bank discount yield, the bond equivalent yield, and the effective annual return? Discount yield = Bond Equivalent Yield= Effective Annual Return= 4. The treasurer of a large corporation wants to invest $22 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 6.11 percent; that is, the EAR for this investment is 6.11 percent. However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has already bought. If the term of the instrument is 78 days, what are the bond-equivalent and discount yields on this investment?(Round your answer to 3 decimal places. Omit the "%" sign in your response.) Bond equivalent yield = Discount yield = 5. A Treasury bill that settles on July 17, 2010, pays $100,000 on August 21, 2010. Assuming a discount rate of 4.80 percent, what is the price and bond equivalent yield? Use Excel to answer this question. (Round your Price to 2 decimal places and Yield to 3 decimal places. Omit the "$" & "%" signs in your response.) Price = Bond Equivalent yield = 6. Rolling Company bonds have a coupon rate of 9.80 percent, 17 years to maturity, and a current price of $1,276. What is the YTM? The current yield? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) YTM = Current yield = 7. A bond has a coupon rate of 9.8 percent and 11 years until maturity. If the yield to maturity is 8.2 percent, what is the price of the bond? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price of Bond = 8. A bond with 21 years until maturity has a coupon rate of 7.6 percent and a yield to maturity of 9.3 percent. What is the price of the bond? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price of Bond = 9. A bond sells for $892.10 and has a coupon rate of 7.80 percent. If the bond has 18 years until maturity, what is the yield to maturity of the bond? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Yield to Maturity = 10. May Industries has a bond outstanding that sells for $786. The bond has a coupon rate of 7.00 percent and 19 years until maturity. What is the yield to maturity of the bond? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Yield to Maturity = 11. Atlantis Fisheries issues zero coupon bonds on the market at a price of $484 per bond. Each bond has a face value of $1,000 payable at maturity in 11 years. What is the yield to maturity for these bonds?(Round your answer to 2 decimal places. Omit the "%" sign in your response.) Yield to Maturity = 12. Ghost Rider Corporation has bonds on the market with 13 years to maturity, a YTM of 6.1 percent, and a current price of $959. What must the coupon rate be on the company's bonds? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Coupon Rate = 13. Great Wall Pizzeria issued 4-year bonds one year ago at a coupon rate of 5.6 percent. If the YTM on these bonds is 7.8 percent, what is the current bond price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price = 14. Both bond A and bond B have 8.2 percent coupons and are priced at par value. Bond A has 6 years to maturity, while bond B has 18 years to maturity. a) Assume if interest rates suddenly rise by 1 percent, what is the percentage change in price of bond A and bond B? (Round your answer to 2 decimal places. Negative answers should be indicated by a minus sign. Omit the "%" sign in your response.) Bond A Bond B % % b) Assume if interest rates suddenly fall by 1 percent instead, what would the percentage change in price of bond A and bond B? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Bond A Bond B % %

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