Q3. Calculate Two-Year Returns on Different-Maturity 5% Coupon Rate Bonds with Face Value of 1000 When Interest Rates Rise from 5% to 10% Original Initial maturity Current Yield (N) 30 2252 20 10 1 Initial Price (S) Price Next Year (5) Rate of Capital Gain (N) Rate of Return (N)
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- B. Find the annual interest and maturity/yield rate. FACE VALUE COUPON RATE ANNUAL PRESENT VALUE MATURITY/YIELD RATE INTEREST 5. P1,000.00 3% P850 6. P600,000.00 5% P630,000.00Q1. Consider the following par bond (ie coupon rate=yield): Year 3 5 7 10Yld 0.83% 1.22% 1.45% 1.54% Q1a. based on linear interpolation, what is the expected yield for a 10 year note ONE year later, assuming yield curve shape stays the same? Q1b. how much should the 10y note be priced 1 year later (as a 9 year note)?Answer briefly the following questions:a) Write the formula of the Price-Earnings ratio and explain how a result of 11 should be interpreted.b) Write the equation for the PV of 200.000₺ to be received two years later when the market interest rate isforecast as 17%.c) Define the yield to maturity of a 4-year maturity bond whose face value will be repaid at the end of thematurity.d) Define the intrinsic value of a 2-year maturity bond whose face value will be repaid in equal installments.
- 1) Explain the concept of interest rate risk in bond investment 2) show a numerical example of it by calculating % changes in price for 1 year and 3-year annual coupon bonds. Assume coupon interest rate = 12%, Yield to Maturity = 6%, Face value= 100. Use 2% increase in YTM (i.e., 6% → 8%).Q1. Consider the following par bond (ie coupon rate=yield):Year: 10 and 20 years . Yld 1.50% and 2.0%Q1a. based on linear interpolation, what is the expected yield for a 20 year bond ONE year later,assuming yield curve shape stays the same?NEED ALL! A 6-year bond with an annual coupon of 4.5% currently trades with a yield of 3.2%. Estimate the:a. Bond priceb. Bond prices in case yield increase, or decrease by 1.5%c. Modified duration (analytical and approximate)d. Convexity (analytical and approximate
- Suppose you are given the following information about the default-free, coupon-paying yield curve: Maturity (years) Coupon rate (annual payment) YTM 1 0.00% 2.587% a. Use arbitrage to determine the yield to maturity of a two-year zero-coupon bond. b. What is the zero-coupon yield curve for years 1 through 4? Note: Assume annual compounding. 2 11.00% 4.008% a. Use arbitrage to determine the yield to maturity of a two-year zero-coupon bond. The yield to maturity of a two-year, zero-coupon bond is %. (Round to two decimal places.) b. What is the zero-coupon yield curve for years 1 through 4? The yield to maturity for the three-year and four-year zero-coupon bond is found in the same manner as the two-year zero-coupon bond. The yield to maturity on the three-year, zero-coupon bond is %. (Round to two decimal places.) The yield to maturity on the four-year, zero-coupon bond is %. (Round to two decimal places.) Which graph best depicts the yield curve of the zero-coupon bonds? (Select the…2. Consider an 8% annual coupon bond trading to yield 6% with 3 years to maturity and a par value of $1000. a. What is the Duration? b. What is Modified Duration? c. What is expected Price change of Bond for a 5 basis point (.05%, .0005) increase in YTM using modified duration?You have estimated spot rates as follows: r₁ = 5.00%,r₂ = 5.40%,r3 = 5.70%,r4 = 5.90%,15 a. What are the discount factors for each date (i.e., the present value of $1 paid in year t)? b. Calculate the PV of the following $1,000 bonds assuming annual coupons and maturity of: (1) 5%, two-year bond; (2) 5%, five-year bond; and (3) 10%, five-year bond. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the PV of the following $1,000 bonds assuming annual coupons and maturity of: (i) 5%, two-year bond; (ii) 5%, five-year bond; and (iii) 10%, five-year bond. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. b-i. 5%, two-year bond b-ii. 5%, five-year bond b-iii. 10%, five-year bond $ Present Value 47.60 X = 6.00%. X < Required A Required B
- Q2. Consider 3 zero coupon bond: Maturity Yld: 10 1.50%; 20 2.00%; 30 2.25% Q2a. calculate duration and convexity, dollar duration and dollar convexity for all three Q2b. how to hedge the duration risk of a 100M position in 20Y with 10Y and with 30Y respectively? Q2c. What is the dur and convexity effect of 5 bps steepening caused by 10Y up 10 bps; 20Y up 15 bps for the 10 vs 20Y trade?? Q2d. What is the dur and convexity effect of 5 bps flattening caused by 20Y up 15 bps; 30Y up 10 bps for the 20 vs 30Y trade?(C) Calculate the yield-to-maturity (YTM) and current yield for each of the bonds below. Coupon rate (%) per period 9% annually 3% semi-annually 12% quarterty Years to Вond Par Value Market Price maturity 8. RM1,000 RM100 RM500 RM820 RM118 RM560 Y 12Help me pls, ill rate you pleaseeeee "Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 4.75% with semi-annual payments, and a 13-year maturity if the price is $844."
