Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. Note: Round your answers to 2 decimal places. Price Maturity (years) Bond-Equivalent Yield to Maturity $ 547.50 10.00 % $ 450.00 15.00 % $ 600.00 10.00 % $ 372.91 8.00 11.60 % 15.00 3.10 % $ 523.90 7.60%
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- Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. (Round your answers to 2 decimal places.) Maturity (years) Bond-Equivalent Yield to Maturity Price $ 495.00 10.00 % $ 510.00 15.00 % $ 530.00 10.00 % 17.00 7.90 % 12.00 10.40 % 2$ 623.35 8.00 %Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) Price (%) 3 86.50 5. 105.50 9. 136.50 a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Bond Coupon (%) YTM 3. % 9. % b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond Coupon (%) Duration years years 9. yearsFill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. (Round your answers to 2 decimal places.) Price Maturity (years) Bond-Equivalent Yield to Maturity $ 575.00 10.00 % $ 500.00 10.00 % $ 610.00 20.00 % 12.00 6.80 % 10.00 6.80 % $ 567.97 3.90 %
- The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value): Maturity (years) Price (per $100 face value) 1 $96.32 a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? a. Compute the yield to maturity for each bond. The yield on the 1-year bond is %. (Round to two decimal places.) 2 $91.93 3 $87.36 4 5 $82.57 $77.42Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Assume annual compounding. Note: Round your answers to 2 decimal places. $ GA $ $ $ $ Price 450.00 500.00 450.00 360.33 456.97 Maturity (years) 10.00 20.00 20.00 10.00 15.00 Bond-Equivalent Yield to Maturity % % % 11.50 % 10.20 % 6.80 %Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 2 Price (%) 48 80.57 97.19 134.92 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Bond Coupon YTM (%) 2 4 6.00 % 7.42% 8 7.01 %
- The following table shows some data for three bonds. In each case, the bond has a coupon of zero. The face value of each bond is $1,000. Bond Price Maturity (Years) Yield to Maturity A $ 230 20 B с 230 17 10% 9 What is the yield to maturity of bond A? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Assume annual compounding. What is the maturity of B? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Assume annual compounding. What is the price of C? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Assume annual compounding.Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100 Bond Coupon (X) Price X) 89.00 10.00 139.00 10 o. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your enswers es a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Bond Coupon (%) YIM 434 % 4.04 O% 5.10 O% 10 b. What is the duration of each bond? (Do not round intermediete celculations. Round your enswers to 2 decimal places.) Answer is complete but not entirely correct. Bond Duration Coupon () 873 years 3. 817 years 10 7.19 Cyearsnumerical answers should be calculated to at least two decimal places. Face value of bonds is taken as $100. assume coupon payments are paid once a year. Bond A: term to maturity=10 years, coupon rate = 9.75%, current price = $160.55. Find the current yield and yield to maturity of Bond A. Bond B: term to maturity-5 years, coupon rate = 11.25%, yield to maturity -2.35% p.a. Find the current price of Bond B. From your answer, what do say about this price when compared with the face value of the bond?
- Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Price $983.78 865.89 797.92 732.00 660.24 Required: a. Calculate the forward rate of interest for each year. b. How could you construct a 1-year forward loan beginning in year 3? c. How could you construct a 1-year forward loan beginning in year 4?Consider the following risk-free bonds available for sale in the bond market (assume annual +Coupons). Bond's maturity Ask Price (per $100 of Coupon rate (in %) face value 1-year bond 100.0040 0.125% 2-year bond 101.2100 2% 3-year bond 101.2140 1.625% Construct the term structure of interest rates for these three periods. b. Your company plans to issue three-year maturity coupon bonds. Based on its excellent credit rating, your company pays a low constant 3% risk premium over the relevant term-structure rates. You plan to issue bonds priced at par (i.e. price = face value). At what level should you plan to set the coupon on your bond to justify this price? c. Now assume that your company wishes to issue 3-year zero coupon bonds. At what price will these bonds sell?The following table shows some data for three bonds. In each case, the bond has a coupon of zero. The face value of each bond is $1,000. Bond Price Maturity (Years) Yield to Maturity A $ 300 30 — B 300 — 8% C — 10 10 What is the yield to maturity of bond A? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Assume annual compounding. What is the maturity of B? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Assume annual compounding. What is the price of C? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Assume annual compounding.