Question: NEED QUICK ANSWERS ONLY Q2 - What is the interest rate of the following bond, assuming that the market for the bond is in equilibrium?
NEED QUICK ANSWERS ONLY
Q2 - What is the interest rate of the following bond, assuming that the market for the bond is in equilibrium?
Par value: $1,000
Years to maturity: 15 years
Coupon rate: 8% paid semiannually
Current market price: $1,200
Select one:
a. 5.96%
b. 3.46%
c. 4.21%
d. 5.28%
e. 2.98%
Q-3 5 years ago, you bought a Ford bond. At the time of the purchase, the bond had a coupon rate of 8% paid semiannually, a par value of $1,000, and a time to maturity of 25 years. What is the expected price of the bond today if the interest rate is 12%?
Select one:
a. $699.07
b. $697.43
c. $701.65
d. 703.87
Q4 - What is the current market risk premium implied by the following information about EEM Companys bonds, assuming that the market for the bonds is in equilibrium?
Par value: $1,000
Years to maturity: 20 years
Coupon rate: 8% paid semiannually
Current market price: $980
Current risk-free rate: 5%
Beta of the bond: 0.5
Select one:
a. 6.41%
b. 7.50%
c. 8.12%
d. 6.00%
e. 8.56%
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