Question
Solve the quantitative tasks below using Python and choose correct answer from options given using python to solve the task please use python separately for
Solve the quantitative tasks below using Python and choose correct answer from options given using python to solve the task
please use python separately for each question by numbering them in order as shown.
1. Trampoline Inc. wants to expand its business. They will issue bonds to fund their expansion. If the current required rate of return for investors is 11%, what should the price be for their bonds with a $1,000 face value, 15 years to maturity, and a coupon rate of 8% paid semiannually?
a.$1,425.01 b.$1,198.43 c.$1,121.67 d.$1,216.15 e.$1,345.88 |
2. Currently, Sport Citys 10-year bonds are selling for $975. What is the bonds yield to maturity given that the bond has a $1,000 face value and that it pays 6% interest annually?
a.3.17% b.4.17% c.5.76% d.6.34% e.2.97% |
3. Some New Co. needs funding for a new product that will revolutionize the world. They want to issue new bonds to fund their project. Some New Co. is worried about generating enough cash to make coupon payments during the introduction phase of their product, so they would like to keep the coupon payments below the market interest rate. They are offering a five-year, $1,000 face value bond with a YTM of 15% for $750. What will their coupon payments be if they make coupon payments semiannually?
a.$42.73 b.$38.58 c.$35.14 d.$30.00 e.$29.79 |
4.Your credit union is advertising a 10-year CD at a rate of 3% EAR. These CDs compound quarterly. What is the APR?
a.2.97% b.1.50% c.3.12% d.2.56% e.2.00% |
5. Calculate the PV of the cash flows associated with a 10-year bond that pays $30 coupon payments every 6 months and has a face value of $1,000. The current interest rate is 6% APR.
a.$655.90 b.$779.20 c.$790.00 d.$1,000.00 e.$534.89 |
6. Jayne and Josh are ready to buy a house. The bank is advertising an APR for 30-year fixed-rate mortgages of 4.75%. What is the EAR for this mortgage that is compounded monthly?
a.4.00% b.4.85% c.4.25% d.4.55% e.4.99% |
7. Freedom Rings, a new local government agency, would like to issue new bonds to build a local recreation center. The bonds will mature in four years, pay $100 coupon payments annually, have a face value of $1,000, and have an expected return of 9%. If interest rates go up by 1% in the market, how much will the price of this bond go down?
a.3.5% b.3.0% c.2.0% d.2.5% e.1.5% |
8. What is the PV of a one-year, $100 bond that pays no coupon payments if borrowing rates are 4%?
a.$96.15 b.$102.35 c.$130.22 d.$90.02 e.$100.00 |
9. Currently, Sport Citys 10-year bonds are selling for $975. What is the bonds yield to maturity given that the bond has a $1,000 face value and that it pays 6% interest annually? (Assume coupons are paid semiannually.)
a.6.34% b.4.17% c.5.76% d.3.17% e.2.97% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started