- +1-530-264-8006
- info@tutorsglobe.com

The bonds par value is 1000 and the current interest rate

**Questions -**

Q1: Firm A is issuing a zero-coupon bond that will have a maturity of 50 years. The bond's par value is $1,000, and the current interest rate is 7.5%. What is the price of this bond?

Q2: What is the price of a 5% coupon bond with 20 years left to maturity and a market interest rate of 6.25%? Is this a discount or premium bond? (Hint: interest payments are semi-annual and fair value is $1,000).

Q3: A6.25% coupon bond with20 years left to maturity is offered for sale at $1017.20. What yield to maturity is the bond offering? (Hint: interest payments are paid semi-annually and par value is $1,000)?

Q4: What's the taxable equivalent yield on a municipal bond with a yield to maturity of 4.25%for an investor in the 28%marginal tax bracket?

Q5: A 5.25% coupon bond with 14 years left to maturity can be called in 4 years. The call premium is one year of coupon payments. It is offered for sale at $1,075.50. What is the yield to call (YTC) of the bond?

Expected delivery within 24 Hoursrs

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment
## Q : You paid cash for 1300 worth of stock a year ago today the

nbspyou paid cash for 1300 worth of stock a year ago today the portfolio is worth 1888anbspwhat rate of return did you