8. Suppose a certain bond sold a volume of 2, 375, 000. If the bonds sold for $824.99, calculate the last price and the estimated volume for the bond table shown. LAST LAST EST VOL COMPANY (TICKER) COUPON MATURITY PRICE YIELD (000s) BOND 3.961 July 31, 2004 ? 3.027 ?? The last price was $82.499. The estimated volume was 2, 375. The last price was $2.375. The estimated volume was 82.499. O The last price was $82.499. The estimated volume was 3, 961. O The last price was $396.10. The estimated volume was 2, 375.

8. Suppose a certain bond sold a volume of 2, 375, 000. If the bonds sold for $824.99, calculate the last price and the estimated volume for the bond table shown. LAST LAST EST VOL COMPANY (TICKER) COUPON MATURITY PRICE YIELD (000s) BOND 3.961 July 31, 2004 ? 3.027 ?? The last price was $82.499. The estimated volume was 2, 375. The last price was $2.375. The estimated volume was 82.499. O The last price was $82.499. The estimated volume was 3, 961. O The last price was $396.10. The estimated volume was 2, 375.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The following is a T-bond quote (par value $1,000) from the WSJ (8/31/2018). Use the information in the quote to answer the question. Maturity Coupon Bid Asked Chg Asked Yield 8/31/2,034 11.68 104:15 104:20 -14 ??? How much is the premium or discount of this bond? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16). Use a negative sign to represent a discount.)
Consider the following bonds: . What is the percentage change in the price of each bond if its yield to maturity falls from 6.3% to 5.3%? The price of bond A at 6.3% YTM per $100 face value is $ (Round to the nearest cent.) - X Data table (Click on the following icon g in order to copy its contents into a spreadsheet.) Bond Coupon Rate (annual payments) Maturity (years) A 0.0% 15 В 0.0% 10 3.6% 15 8.4% 10 Print Done
A. Given below is information about three RM $5000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value...... Bonde Coupon Rate (%)* Maturity (years) 14 10€ 5€ 24 124 10€ 34 144 15€ B. Using the above table, if the company decided to pay coupon annually (12%), calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value........ ↑. t. t. t. C. Explain the of Bons available in the market for the Companies to raise fund...... Is there any difference in the value of semiannually and annually......
Suppose the current price of the bond is $95, the YTM is 4%, and the duration of the bond is 9. If YTM decrease from 4% to 3.9%, approximate the change in price using duration of the bond. Price would increase by ____%
If the YTM on the following bonds are identical except, what is the price of bond B? Bond A Bond B Face value $1,000 $1,000 Semiannual coupon $45 $35 Years to maturity 20 20 Price $1,098.96 ?
Use the table for the question(s) below. Consider the following four bonds that pay annual coupons: Coupon Bond Years to maturity YTM A 1 0% 5% B 6% 7% C 10 10% 9% D 20 0% 8% The percentage change in the price of the bond "A" if its yield to maturity increases from 5% (Price0) to 6% (Price1) is closest to: О А. 4%. В. - 1%. C. - 4%. OD. - 6%. O O O O
The following table summarizes prices of various default-free zero-coupon bonds ($100 face value): (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) 1 2 3 4 5 Price (per $100 face value) $95.51 $91.05 $86.38 $81.65 $76.51 a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? Note: Assume annual compounding. Question content area bottom Part 1 a. Compute the yield to maturity for each bond. The yield on the 1-year bond is enter your response here%. (Round to two decimal places.)
c) Suppose you observe the following three bonds. Assume that all bonds are denominated at $100 face value per contract and that they pay their coupons annually. Price Coupon Maturity (years) Bond A 111.42 15 3 Bond B 108.33 15 Bond C 116.61 15 1 i) Compute the spot rates r0,1, r0,2 and r0,3. ii) Compute the forward rates r1,2 and r2,3.
A $1000 bond with coupons at j2 = 8% is purchased to yield j2 = 7%. The write down in the first period after purchase is $4.01. What is the purchase price of the bond?
O ook int ences You find the following Treasury bond quotes. To calculate the number of years until maturity, assu of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.052 6.143 Maturity Month/Year May 33 May 36 May 42 Yield to maturity Asked Bid 103.4560 103.5288 104.4900 104.6357 ?? Change Ask Yield +.3248 5.00 % +.4245 +.5353 In the above table, find the Treasury bond that matures in May 2036. What is your yield to matur Note: Do not round intermediate calculations and enter your answer as a percent rounded to 5.919 ?? 3.951
The following is a T-bond quote (par value $1,000) from the WSJ (8/31/2018). Use the information in the quote to answer the question. Maturity Coupon Bid Asked Chg Asked Yield 8/31/2,033 5.35 98:15 98:20 -14 ??? What is the purchase price of the bond? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
Calculate the purchase price of the following bonds. Indicate whether the bonds are priced at a discount, at par or at a premium. Give your answers in dollars and cents to the nearest cent. Face Value Coupon Rate Years to Maturity Market Rate a) $100 r = 6.75% 5 j2 = 6.75% b) $1,000 r = 8% 11 j2 = 6.25% c) $10,000 r = 7% 20 j2 = 8.75% Quoted coupon rates and market rates are nominal annual rates compounded semi-annually. a)Price = $ This bond is priced at:a discountpara premium b)Price = $ This bond is priced at:a discountpara premium c)Price = $ This bond is priced at:a discountpara premium

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