Question: 1.Bond E has the following features: Face value = $1,000,Coupon Rate = 4%, Maturity = 5 years,Yearly coupons The market interest rate is 3.43% If

1.Bond E has the following features:

Face value = $1,000,Coupon Rate = 4%,

Maturity = 5 years,Yearly coupons

The market interest rate is 3.43%

If interest rate remains at 3.43% for the life of the bond (i.e., 3.43 years), what is the price of Bond Ein year 4?

2.Bond A has the following features:

Face value = $1,000,

Coupon Rate = 6%,

Maturity = 7 years, Yearly coupons

The market interest rate is 4.11%

If interest rates remain at 4.11%, what will the price of bond A be in year 1?

3.How much would you pay today for a bond that has a face value of $1,000, and annual coupon of $91 and a maturity of 8 years? (=what is the price of the bond?)

The annual interest rate is 4.68%?

4.Bond A has the following features:

Face value = $1,000,

Coupon Rate = 4%,

Maturity = 9 years, Yearly coupons

The market interest rate is 3.37%

What is today's price of bond A?

5.Bond A has the following features:

Face value = $1,000,

Coupon Rate = 9%,

Maturity = 5 years, Yearly coupons

The market interest rate is 4.08%

If interest rates remain at 4.08%, what is thepercentagecapital gain or losson bond A if you sell the bond in year 1?

State your answer to 2 decimal places (e.g., 3.56,0.29)

If there is a capital loss make sure to include a negative sign in your answer (e.g., -0.23)

6.Bond A has the following features:

Face value = $1,000,

Coupon Rate = 4%,

Maturity = 7 years, Yearly coupons

The market interest rate is 5.26%

What is thecurrent yieldfor bond A from today to year 1?

Calculate your answer to 2 decimal places (e.g., 5.23)

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