Question
Q1) A $1,000 par value bond that pays interest annually just paid $56 in interest. What is the coupon rate? (1 point) Q2) A 09.20%
Q1) A $1,000 par value bond that pays interest annually just paid $56 in interest. What is the coupon rate? (1 point)
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Q2) A 09.20% coupon, 14-year annual bond is priced at $811. What is the current yield for this bond? (1 point)
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Q3) What is the price of a $1,000 par value, semi-annual coupon bond with 9 years to maturity, a coupon rate of 11.00% and a yield-to-maturity of 06.90%? (1 point)
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Q4) What is the price of a $1,000 par value, 20 year, annual coupon bond with a 09.20% coupon rate and a yield to maturity of 10.20%? (1 point)
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Q5) You bought a 12-year, 09.70% semi-annual coupon bond today and the current market rate of return is 08.70%. The bond is callable in 3 years with a $86 call premium. What price did you pay for your bond? (2 points)
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Q6) A 08.60% annual coupon, 14-year bond has a yield to maturity of 08.30%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year: a) what should the price of the bond be today? (1 point)
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b) What is bond price expected to be in one year? (1 point)
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c) What is the expected Capital Gains Yield for this bond? (1 point)
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d) What is the expected Current Yield for this bond? (1 point) |
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