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Need help as soon as possible with my finance home work. 1, Cyberdyne Systems is issuing a series of zero coupon bonds to raise $500M
Need help as soon as possible with my finance home work.
1, Cyberdyne Systems is issuing a series of zero coupon bonds to raise $500M to fund research and development at its Skynet division. Each bond will have a face value of $1,000 and will mature in 6 years. The yield on the bond is 1.5%. What is the fair price for one of Cyberdyne's zero coupon bonds? The fair price for one of Cyberdyne's zero coupon bonds is $ .(Round to the nearest cent.) 2. Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 22 years, for $212.75. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bond's life?The implicit interest in the first year of the bond's life is $ 3. . (Round to the nearest cent.) What is the percentage change in price for a zero coupon bond if the yield changes from 7% to 5%? The bond has a face value of $1,000 and it matures in 18 years. Use the price determined from the first yield, 7%, as the base in the percentage calculation.The percentage change in the bond price if the yield changes from 7% to 5% is 4. %. (Round to two decimal places.) Beam Inc. bonds are trading today for a price of $,265.12. The bond currently has 22 years until maturity and has a yield to maturity of 2.43%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond? The coupon rate of the bond is %. (Round to one decimal place.) 5. With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.7% and will mature on this day 32 years from now. The yield on the bond issue is currently 6%. At what price should this bond trade today, assuming a face value of $1,000 and annual coupons? The price of the bond today should be $ 6. . (Round to the nearest cent.) What is the price of a 6-year, 8.4% coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 7%?The price of the bond is $ 7. . (Round to the nearest cent.) If the nominal rate of interest is 14.01% and the real rate of interest is 7.49%, what is the expected rate of inflation? The expected rate of inflation is %. (Round to two decimal places.) 8. Consider a $1,000 face value zero coupon bond which matures in 15 years. What is the fair price for the bond if the yield is 5%? A. $386.45 B. $481.02 C. $536.39 D. $465.32 E. $520.68Step by Step Solution
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