Question: HW 7 1) Consider a $1,000.00 face value bond with a $55 annual coupon and 10 years until maturity. Calculate the current yeld; the coupon
HW 7 1) Consider a $1,000.00 face value bond with a $55 annual coupon and 10 years until maturity. Calculate the current yeld; the coupon rate and the yield to maturity under each of the folowing: a) The bond is purchased for $940.00 b) The bond is purchased for $1.130.00 c) The bond is purchased for $1.000.00 2) Calculate the price of a zero coupon bond that has an interest rate of 6.65% (.0665). a face value of $100.00 and six-months to maturity. 3) calculate the price of a $1.000 face value bond that offers a $45 annual coupon, and has six years to maturity, when the interest rate is 6.0% (0.060). 4) Calculate the holding period return for a S1,000 face value bond with a $60 annual coupon purchased for $970.00 and sold three years later for $1,060.00. 5) Use the example of a consol to show how bond prices and yields are inversely related
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