How much should these bonds sell for today

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Reference no: EM133731757

Question 1: Find the yield to maturity on a semiannual coupon bond given that the bond price is $1128, the coupon rate is 8%, the face value is $1000, and which matures in 13 years. (Do not use % sign with your answer).

Question 2. What is the value of a 30-year semiannual coupon bond given that the coupon rate = 11%, the face value = $1000, the required return = 15%, and there are 15 years remaining until maturity? (Do not use the dollar sign in your answer).

Question 3. What is the duration of the bond in Problem 1, assuming a settlement date of 3/1/2018 and a maturity date of 4/15/2031?

Question 4. What is the duration of the bond in Problem 2, assuming a settlement date of 3/1/2018 and a maturity date of 6/1/2033?

Question 5. Suppose you purchase a 25-year, $1000-face value, zero coupon bond for $357.80 when it was issued on 3/1/2018 (next day settlement). What is the bond's YTM? (Do not use the % sign with your answer).

Question 6. Consider the bond in Problem 5. What would the value of the bond be 5 years from settlement date, all else being equal? (Answer as percent of par).

Question 7. Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 2 years remaining until maturity. What is the current yield on the bond assuming that the required return on the bond is 10%? Assume simple compounding.

Question 8. A 2-year note was issued on 2/28/2018 (your settlement date was 3/1/2018) If it has coupon of 2.5% and sold for 99.327, what is its yield to maturity?

Question 9. A 10-year municipal bond has a coupon rate of 4.5% and just sold today for 104.56. It matures on December 1, 2023. What is its tax-equivalent yield? Assume a marginal tax rate of 40% and interest is paid June 1 and December 1. (Do not use the % sign with your answer).
Question 10. Calculate the current price of a $1,000 par value bond that has a coupon rate of 6% paid semi-annually, has 14 years remaining to maturity, and has a yield to maturity of 8%.

Question 11. You intend to purchase a 10-year, $1,000 par value bond that pays interest of $60 every six months. If the yield to maturity is 10%, how much should you be willing to pay for this bond?

Question 12. What is the price of a $5000 par value bond, with a coupon rate of 7.5% (coupon interest paid quarterly), 15years remaining to maturity and a yield to maturity of 8.25%?

Question 13. XYZ, Inc. has a bond outstanding with a par value of $10,000 that makes monthly coupon payments. Thecoupon rate is 9 percent, and the bond has 24 years remaining to maturity. If the yield to maturity of similarbonds is 9.35 percent, what is the current price of the bond?

Question 14. Clovis Pharmaceuticals, Inc. has just issued a convertible note with the following terms: Issue date: April 19, 2018; maturity date: May 1, 2025; coupon rate: 1.25%; conversion price: $76.17 per share. What is the note's conversion ratio?

Question 15. Rank the following bonds in order of descending duration:
BOND COUPON RATE (%) TIME TO MATURITY (YRS) YTM (%)
A 15 20 10
B 15 15 10
C 0 20 10
D 8 20 10
E 15 17 10

Question 16. A zero-coupon bond with a maturity of 10 years has an annual effective yield of 10%. What is the closest value for its modified duration?
a. 10
b. 100
c. 9
d. 90

Question 17. Acme Organic Potato Chip Corp. sold an issue of 12-year $1,000 par bonds for general corporation finance purposes. The bonds pay 4.85% interest, semiannually. Today's required rate of return is 9.7%. How much should these bonds sell for today?

Question 18. Dewey, Cheatham & Howe, a regional brokerage house, has an issue of $1,000 par value bonds with 18 years left until maturity. The coupon rate is 7.7%, with semi-annual payments. If the current price of the bond is $1,175, what is the bond's YTM?

Question 19. Northridge 1st National Bank issued $1000 par, 20-year bonds, with a coupon rate of 6.5% on April 30, 2015. If the bonds are currently selling at $758.18, what is the bond's YTM?

Question 20. A bond has a current price of $800, a maturity value of $1,000 (matures in 5 years). If interest is paid semi-annually and the bond is priced to yield 8%, what is the bond's annual coupon rate?

Reference no: EM133731757

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