An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.2%. Bond C pays a 11.5% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.2% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z 4 $ 3 $ 2 1 0 $ $ $
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- An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.0%. Bond C pays a 11.5% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.0% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z $ $ 3 $ 2$ 2 $ $ 1 $ $ $An investor has two bonds in her portfolio, Bond C and Bond Z. Eachbond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.2%.Bond C pays an 11.5% annual coupon, while Bond Z is a zero coupon bond.a. Assuming that the yield to maturity of each bond remains at 8.2% over the next 4years, calculate the price of the bonds at each of the following years to maturity: b. Plot the time path of prices for each bond.An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1000, and has a yield to maturity equal to 9.6%. One bond, Bond C pays an annual coupon of 10%; the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bind remains at 9.6% over the next 4 years, what will be the price of each bond at the following time periods? Fill in the following table: T Price of Bind C Price of Bind Z O 1 2 3 4
- An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 8.5%. One bond, Bond C, pays an annual coupon of 12%; the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 8.5% over the next 4 years, what will be the price of Bond Z at the following time periods? At the end of year 2.An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 9.8%. One bond, Bond C, pays an annual coupon of 10%; the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 9.8% over the next 4 years, what will be the price of each of the bonds at the following time periods? Assume time 0 is today. Fill in the following table. Round your answers to the nearest cent. T 0 1 2 3 4 Price of Bond C $ 00000 Price of Bond Z $ 00000An investor has two bonds in her portfolio, Bond H and Bond L. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.1%. Bond H pays a 10.5% annual coupon, while Bond L is a zero coupon bond. 1.Assuming that the yield to maturity of each bond remains at 8.1% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answers to the nearest cent.
- Madsen Motors's bonds have 25 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 10%, and the yield to maturity is 12%. What is the bond's current market price? Round your answer to the nearest cent.An investor has two bonds in his portfolio. Each bond matures in 4 years,has a face value of $1,000, and has a yield to maturity equal to 9.6%. Onebond, Bond C, pays an annual coupon of 10%; the other bond, Bond Z, is azero coupon bond. Assuming that the yield to maturity of each bond remainsat 9.6% over the next 4 years, what will be the price of each of the bonds atthe following time periods?You want to form a bond portfolio that pays $100 every six months, for the next year. That is, $100 in 0.5 years and $100 in 1 year. To achieve this goal, you will purchase Bonds A and B, which have a face value of $100 and pay semi-annual coupons. The following information is available: Bond A • Coupon rate (APR): 4.3% Maturity: 1 year Bond B • Coupon rate (APR): 9.5% • Maturity: 1 year Calculate the number of units you must buy of Bond B to achieve your goal. Express your answer as a number with two decimals. E.g. If your answer is 102.544, then enter it as 102.54
- Excel Answer Please! An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.2%. Bond C pays a 10.5% annual coupon, while Bond Z is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 8.2% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z 4 $ $ 3 $ $ 2 $ $ 1 $ $ 0 $ $You want to invest in a bond for one year, and are deciding between the following two choices - Bond A and Bond B, both of which have a maturity of 1 year and a par value of $1,000.Bond A is a regular(i.e., nominal- return) with a couponrate of 3% per year, payable semi-annually. The current price of Bond A is $998. Bond B is a real-return bond with a coupon rate of 2% per year, payable annually. The current price of Bond B is $1,000. What is the inflation rate (over the next year) that will make the (nominal) ratesof return of the two choices the same?An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 17 years, while Bond S matures in 1 year. a. What will the value of the Bond L be if the going interest rate is 7%, 8%, and 12%? Assume that only one more interest payment is to be made on Bond S at its maturity and that 17 more payments are to be made on Bond L. Round your answers to the nearest cent. 7% 12% 8% $ Bond L $ Bond S $ $ b. Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates change? 1. Long-term bonds have lower interest rate risk than do short-term bonds. II. Long-term bonds have lower reinvestment rate risk than do short-term bonds. III. The change in price due to a change in the required rate of return increases as a bond's maturity decreases. IV. Long-term bonds have greater interest rate risk than do short-term bonds. V. The change in price due to a change in the required rate of return…