Question
NEED HELP ASAP, THERE IS A DOCUMENT THAT HAS THESE ANSWERS BUT I CANNOT FIND IT, COULD YOU PLEASE HELP ME? THANKS! 1. Bonus valuation
NEED HELP ASAP, THERE IS A DOCUMENT THAT HAS THESE ANSWERS BUT I CANNOT FIND IT, COULD YOU PLEASE HELP ME?
THANKS!
1. Bonus valuation Indicate the price of a 10-year zero-coupon bond that pays 1,000
dollars to the sale, if the yield at maturity is:
to 5%
b) 10%
e) 15%
2. Valuation of bonds Microhard has issued a bond with the following characteristics:
Value at par: I 000 dollars
Time to expiration: 25 years
Coupon rate: 7%
Half-yearly payments
Calculate the price of this bond if the yield at maturity is:
a) 7%
b) 9% '
e) 5%
3. Yields on bonds Watters Umbrella Corp. issued 12-year bonds two years ago, with
7.8% coupon rate. The bond will make semi-annual payments. If today these bonds are sold at 105%
of value at par, what will the yield be at maturity?
4. Coupon rates Rhiannon Corporation has bonds in the market with 13.5 years to expiration,
yield at maturity of 7.6% and current price of USD 1 175. The bonds effect
semi-annual payments. What should be the coupon rate of these bonds?
5. Valuation of bonds Despite the fact that most of the corporate bonds in the United States
make semi-annual coupon payments, bonds issued elsewhere often have payments
annual coupons. Suppose that a German company issues a bond with a value of 1000
euros, 15 years for the due date and coupon rate of 8.4% payable annually. If the performance
at maturity is 7.6%, what is the current price of the bond?
6. Bond yields A Japanese company has a bond issue in circulation that is sold
to 87% of its value at the rate of 100 000 yen. The voucher has a coupon rate of 5.4% that is
pay annually and expire within. 21 years, what is the yield. at expiration of this bonus?
7. Calculation of the actual rate of return If Treasury certificates currently pay 5% and
the inflation rate is 3.9%, what is the approximate real interest rate? And the exact real rate?
8. Inflation and nominal returns Assume that the real rate is 2.5% and the inflation rate is
of 4.7%. What rate would you expect to see in a certificate. of the Treasury?
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