Compute the value of a bond with a typical $1000 par value, a coupon rate of 2.25%

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Question:

Compute the value of a bond with a typical $1000 par value, a coupon rate of 2.25% with semi-annual payments, and a 10-year maturity if investors required a yield to maturity of 0.9% on the bond,

2. Compute the value of the bond in #1 if investors suddenly required a yield to maturity of 0.04% on the bond,

3. Compute the value of the bond in #1 if investors suddenly required a yield to maturity of 0.30% on the bond,

4. Compute the value of a bond with a typical $1000 par value, a coupon rate of 2.25% with semi-annual payments, and a 30-year maturity if investors required a yield to maturity of 0.9% on the bond,

5. Compute the value of the bond in #4 if investors suddenly required a yield to maturity of 0.4% on the bond,

6. Compute the value of the bond in #4 if investors suddenly required a yield to maturity of 3% on the bond.

7. Compute the value of the bond in #6 if there is a 1 basis point change in the required yield due to a fall in the default risk of the debtor (where 1 basis point=0.01%)

8. Compute the value of the bond in #6 if there is a 1 basis point change in the required yield due to a rise in the prepayment/call risk of the debtor (where 1 basis point=0.01%)

9. Compute the value of a bond that is identical to the bond in #6 except that it is convertible into common stock at a fixed conversion ratio and therefore has a required yield to maturity that is 0.28% different from that in #6.

10. Compute the value of a municipal bond that has terms identical to the bond in #6 and has a required yield to maturity that is 0.12% different from that in #6.

11. Compute the value of a $1000, 1-year, zero coupon bond if investors require a yield to maturity of 0.8%

12. Compute the annual expected inflation rate (forecasted by the consensus investor in the market) over the next 10 years by using the real interest rate whichis quoted as the yield on Treasury Inflation Protected Securities (TIPS) at https://www.bloomberg.com/markets/rates-bonds/government-bonds/us

13. Compute the required yield on a 30-year bond that has a spread above Treasury rates of 0.2% using data from the https://www.bloomberg.com/markets/rates-bonds/government-bonds/us

14. Compute the annual change in the Japanese Yen over the next 10 years if the Yen earns 0.1% more than the market expectation of the change in the Yenusing the websites https://www.bloomberg.com/markets/rates-bonds/government-bonds/us and https://www.bloomberg.com/markets/rates-bonds/government-bonds/japan websites

15. Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 3.75% with semi-annual payments, and a 13 year maturity if the price is $849.21.