Vesturchase a 5 year bond that has a par value of $1,000 and an annual coupon payments of 30 each year (paid once a year). Based on this information, determine the duration in years) of this bend if the annual yield-to-maturity is 120 percent. Enter your answer in years, to 2 decimal places. For example, if your answer is 7.7546 years, enter "7.755 to Pay 3100 3100 3100 T o 10 11 12 Want Payot 600318 00 31200 99.00 37 20 3600 37 20 3000 1200 17 000 With the numbers off, we can use these dice to our advantage "Let me see if I understand this," said Harry, scribbling on an burnt section of the Daily Prope. calculations are right, for example, the sum can never be 23 "Brilliant Harry. Even Crabbe and Goyle could have figured that out. Can you tell which sumis cheap?" I'll figure that out in a minute. Regardless, what's the plan, Ron?" "Well, just to avoid being too obvious, we'll go long on '6' and short '2. What is the expected payoff to Ron's strategy? Enter your answer in dollars and cents, rounded to the nearest cent, with no punctuation. For example, if your answer is $5.286, enter"5.29". flow at You Year Cash Flow 100 200 375 275 300 325 350 Assume that an investment has the owg palm of yearty show Years S800 SOOD 10 16-17 31-35 505400 S26 00 The appropriate discount rate is a nominal annual rate of 5 30 percent, with daily compounding (you may assume a 360 day year) Determine how much you should be willing to pay for this investment at Year 0. . $4,616.95 . $4.112.78 $4,273.00 $4,801.54 $4,440.92 You purchase a 20 year bond that has a par value of $1,000 and pays an annual coupon o 51001 every six months). The yield to maturity was 6.0 percent when you purchased this bond. Now, it after you purchased this bond, the yield (reinvestment rate) went up to 13.0 percent (65 percent every six months). Determine your realized compounded yield if you hold this bond for 10 years, then sell it, and reinvestment rates stay at 13.0 percent for the entire 10 year period. Enter your answer in decimal format, to four decimal places. For example, if your answer is 3.11%. enter "0.0311 UF issued a 70 year bond that perseminar coupon of 532.00, sa por var nominal annual yield-to-maturity of 7.639 percent. The bond can be called in years, and the annual yield-to-call is 10.15 percent. Determine the call premium for this bond, $50 $30 $60 $40 $70 Spts ALT-O. you deposit $8.250 into an account, earning an effective anal rate of 10 percent. You on depositing an additional $8,250 each year, at T-1,T-2, etc. Doing this, your account will balance of $100,000 at T-X What is ? 7.22 7.42 7.33 .7.61 7.55 our favorite annuity store. Annuities R-Us, you see a security that offers 46 equal payments the first payment of $600 occurring today, and all other payments of $600 paid in succeedin month intervals, payments will therefore be at months 0,7,14,21 ... 294, 301, 308, and 315. You determine that the correct discount/compounding rate is a nominal annual rate of 5.0 percent, with monthly compounding. Given this information, determine the value of this annuity at Month 315. .$57,184 .$39,014 $48,877 $67,259 $74,982 At our favorite annuity store. Annuities R Us you see a security that offers 46 equal payment the first payment of $600 occurring today, and all other payments of $600 paid in succeedin month intervals, payments will therefore be at months 0, 7, 14, 21 ... 294, 301, 308, and 315. You determine that the correct discount/compounding rate is a nominal annual rate of 5.0 percent, with monthly compounding. Given this information, determine the value of this annuity at Month 315. .$57,184 $39,014 $48,877 $67,259 $74,982
