A $1,000 face value bond pays a $50 semi-annual and matures in 10 years. (Write your...
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A $1,000 face value bond pays a $50 semi-annual and matures in 10 years. (Write your answers below) a. What is the bond's price if comparable debt yields/rates 12%? The price would be decimals) b. What would be the price if comparable debt yields/rates 12% and the bond matures after 5 years? The price would be (2 decimals) c. What are the current yields in a. and b.? The CY is for the 10 year and for the 5 year (2 decimals and do not type %.e.g. 6.31) d. What would be the bond's price in a. and b. if interest rates declined to 8%? The price would be for the 10 year and for the 5 year e. What is the current yield and yield to maturity for the 10 year at 8% interest rate? The CY is and the YTM is (2 decimals and do not type %.e.g. 6.31). (2 A $1,000 face value bond pays a $50 semi-annual and matures in 10 years. (Write your answers below) a. What is the bond's price if comparable debt yields/rates 12%? The price would be decimals) b. What would be the price if comparable debt yields/rates 12% and the bond matures after 5 years? The price would be (2 decimals) c. What are the current yields in a. and b.? The CY is for the 10 year and for the 5 year (2 decimals and do not type %.e.g. 6.31) d. What would be the bond's price in a. and b. if interest rates declined to 8%? The price would be for the 10 year and for the 5 year e. What is the current yield and yield to maturity for the 10 year at 8% interest rate? The CY is and the YTM is (2 decimals and do not type %.e.g. 6.31). (2
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a The bonds price if comparable debt yieldsrates are 12 can be calculated using the bond pricing for... View the full answer
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
Posted Date:
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