Question 1 (3 points) Suppose a discount bond (Le. a bond which does not pay any...

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Question 1 (3 points) Suppose a discount bond (Le. a bond which does not pay any coupons) has a face value of $100. Also suppose that the yield to maturity for this bond is 5.11% (effective annual rate), and that this bond will mature 9.5 years from today. Determine the price of this bond today. Report your answer to 2 decimal places without any $ signs, e.g. if your answer is $345.67, enter 345.67. Your Answer: Answer Question 2 (3 points) Determine the theoretical price of the following bond: Face value - $100 Coupon Rate -5% (Semi-annual payments) Maturity-14 years Required Rate of Return-4.8% (Effective annual rate) (Enter your answer to the nearest penny, with no dollar sign. e.g. 91.23) Your Answer: Question 3 (4 points) Determine the YTM (expressed as an effective annual rate) for the following discount bond (e. the bond does not pay any coupons): Face Value: $1,000 Current Price: $633.77 Years to Maturity: 8 (Enter your answer rounded to 2 decimal places with no percent sign. e.g. 9.12) Your Answer: Answer Question 4 (4 points) A bond with a face value of $1,000 will mature 10 years from today. This bond pays coupons semi-annually, and it has an annual coupon rate of 5.75%. If this bond is selling for $862.62 today, what is its yield to maturity? (Express your answer as an effective annual rate.) (Enter your answer to 2 decimal places without any % sign, e.g. if your answer is 6.34%, enter 6.34.) Your Answer: Answer Question 1 (3 points) Suppose a discount bond (Le. a bond which does not pay any coupons) has a face value of $100. Also suppose that the yield to maturity for this bond is 5.11% (effective annual rate), and that this bond will mature 9.5 years from today. Determine the price of this bond today. Report your answer to 2 decimal places without any $ signs, e.g. if your answer is $345.67, enter 345.67. Your Answer: Answer Question 2 (3 points) Determine the theoretical price of the following bond: Face value - $100 Coupon Rate -5% (Semi-annual payments) Maturity-14 years Required Rate of Return-4.8% (Effective annual rate) (Enter your answer to the nearest penny, with no dollar sign. e.g. 91.23) Your Answer: Question 3 (4 points) Determine the YTM (expressed as an effective annual rate) for the following discount bond (e. the bond does not pay any coupons): Face Value: $1,000 Current Price: $633.77 Years to Maturity: 8 (Enter your answer rounded to 2 decimal places with no percent sign. e.g. 9.12) Your Answer: Answer Question 4 (4 points) A bond with a face value of $1,000 will mature 10 years from today. This bond pays coupons semi-annually, and it has an annual coupon rate of 5.75%. If this bond is selling for $862.62 today, what is its yield to maturity? (Express your answer as an effective annual rate.) (Enter your answer to 2 decimal places without any % sign, e.g. if your answer is 6.34%, enter 6.34.) Your Answer: Answer

Answer rating: 100% (QA)

Question 1 Formula Price of discount bond Face value 1 Yield to maturityn where Face value 100 Yield ... View the full answer