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Suppose you owned a portfolio consisting of $250,000 worth of long-term U.S. government bonds. 1) Would your portfolio be riskless?
Which bond(s) has a 10% yield with an semiannual coupon payment of 8%. Either $1000 face value bond with 5-yr maturity selling for $964.54 or $1000 face value
The bonds have a yield to maturity of 9%. What is the current market price of these bonds?
What is the discount yield, bond yield, and effective annual return on a $1million Treasury bill that currently sells
A 6-year Circular File bond pays interest of $80 annually and sells for $950. What are its coupon rate, current yield, and yield to maturity?
The company has run into hard times and the yield to maturity on the bonds has increased to 15 percent. What has happened to the price of the bond?
The yield to maturity on the bonds is 12% annual interest. There are 15 years to maturity. Compute the price of the bonds based on semiannual analysis.
a. What is the nominal annual return on this investment? b. What is the effective annual rate on this investment?
The bond can be called in five years at a call price of $1,050. What is the bond's nominal yield to call?
Prepare journal entries to record the following events. a) The issuance of the bonds
What are their yield to maturity and their yield to call? What return should investors expect to earn on this bond?
There are 15 years to maturity. a. Compute the price of the bonds based on semiannual analysis.
A) What interest payments do bondholders receive each year? B) At what price does the bond sell, assuming annual interest payments?
Assume that all of the bonds listed in the following table are the same except for their pattern of promised cash flows over time.
Suppose you observe the following prices for zero-coupon bonds (pure discount bonds) that have no risk of default:
If the CPI today is equal to 135 and five years ago it was 105, then the annual compound inflation rate is approximately
If the bond market requires 10% interest compounded semiannually for the debt issued by the company, what is the market price (present value) of the bond?
What coupon rate should the company set on its new bonds if it wants them to sell at par?
What is the yield to maturity of the bond? What is the current yield? What is the yield to maturity on a comparable U.S. Treasury issue?
Determine the current market value of a share of equity in GAG, assuming 10,000 shares of GAG stock are outstanding
The bond has a par value of $1,000 and a yield to maturity of 5.29 percent. How many years is it until this bond matures?
A General Co. bond has an 8 percent coupon and pays interest annually. The face value is $1,000 and the current market price is $1,020.50.
The bonds mature in 9 years. What is the market price of a $1,000 face value bond?
a. What interest payments do bondholders receive each year? b. At what price does the bond sell? (assume annual interest payments.)
1) What interest payments do bondholders receive each year? 2) At what price does the bond sell?