Based on the information below, what is the current market interest rate? Coupon Current Price Remaining Term Bond A 5% $ 703.11 20 years Bond B 7% $ 932.05 10 years Bond C 11% $ 1,078.63 3 years Bond D 11% $ 1,296.89 20 years Question 16 options: 4% 8% 6% 10%
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Based on the information below, what is the current market interest rate?
| Coupon | Current Price | Remaining Term | ||
| Bond A | 5% | $ 703.11 | 20 years | |
| Bond B | 7% | $ 932.05 | 10 years | |
| Bond C | 11% | $ 1,078.63 | 3 years | |
| Bond D | 11% | $ 1,296.89 | 20 years |
Question 16 options:
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4% |
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8% |
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|
6% |
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|
10% |
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- Q24 A bond OMR 100 face value, 10 years to maturity, 4% annual coupon rate, and a annual required rate of return of 8%. What is the coupon payment amount of the Bond; assume that coupons are compounded monthly? a. OMR 2.000 b. OMR 1.000 c. OMR 0.333 d. OMR 4.000Year 1-Year Forward Rate 1 4.6 % 2 4.9 % 3 5.2 % 4 5.5 % 5 6.8 % What should the purchase price of a 1-year zero-coupon bond be if it is purchased today and has face value of $1,000? A. $945.51 B. $950.21 C. $912.87 D. $966.37 E. $956.02Spot rate, forward rate, and yield to maturity One year 6% coupon bond priced at par. Two year 5% coupon bond priced at par. Three year 4% coupon par priced at par. a. what is one year, two year AND three year spot rates (ie s1 s2 s3) ? b. what is the 1 year and 2 year forward rate (ie f12 f23)? c. How much should a THREE year 10% coupon bond with face value of $1,000 be price at ? d. What is the yield to maturity for bond in part 3c ?
- If interest rates rise to 12%, what will be the new price of Bond D? Coupon Current Price Remaining Term Bond A 5% $ 703.11 20 years Bond B 7% $ 932.05 10 years Bond C 11% $ 1,078.63 3 years Bond D 11% $ 1,296.89 20 years Question 20 options: $1,283.92 $924.77 $1,309.86 $514.49Question 2 Using the spot rates below, find the price of a two-years to maturity risky bond that pays 2% annual coupon and has a z-spread of 30 bps (assuming Spot Curve face value of $100 and annual convention). Year YTM 1 0.50% 3.00% 5 3.10% Selected Answer: D. $99.73 Answers: A. $98.73 O B. $100.73 C. $97.73 D. $99.73Coupon Yield Rate Rate Redemption Purchase Date March 15, 2020 Purchase Amount of Price Face Premium/Discount B=? Value 2$ 50,000 2$ Date July 12, 2014 May 15, 2012 7% 5.5% A=? May 15, 2021 8.65% C=? 24 D=? 25000 13998.50
- QUESTION 6 A. B. Matur ity (year s) 1 D. 2 3 $114.51 $113.45 $112.508 Spot rate (%) $120.54 1.25 1.50 19 2-years from now 1.908 Using the spot rates, what would be the value of an option-free bond that pays 6% annual coupon? Par value is $100. 1-year Forward rate (%) 1.70 491 0-years from now 1.25 1-year from now 1.75 Cash flow $3 $3 $103QUESTION 15 Suppose that all investors expect that the interest rates for the 4 years will be as follows. What is the price of a 3-year zero coupon bond with par-$1,000? Year 1-Year Forward rate 4.6% 2 4.9% 3 5.2% 4 5.5% O a. $1,000.00 Ob. $866.32 Oc. $858.92 Od. $821.15Question 7 You hold an annual coupon bond for 1 year, receiving the 0.14 coupon before selling. When bought it had 6 years to maturity, and the YTM was 0.095. Over the year, interest rates ROSE by 0.002What is the total holding period return for this investment? Group of answer choices 0.0939 0.0856 0.0903 0.0879 0.0820
- F What must be the price of a $2,000 bond with a 5.9% coupon rate, annual coupons, and 25 years to maturity if YTM is 10.2% APR? A. $984.98 B. $1,231.23 OC. $1,723.72 D. $1,477 47 CODECompany RJay RJay Sell-Mart Xenon Time to Expiration (months) Company RJay RJay Sell-Mart Xenon 1 $ 2 5 6 Time to Expiration (months) 1 2 5 6 Strike $ 60 70 60 7.50 Strike $ b. Now assume that the effective annual interest rate is 6.70%, which corresponds to a monthly interest rate of 0.54%. Calculate the present value of each call option's exercise price and the adjusted intrinsic value for each call option. (Do not round your intermediate calculations and round your final answers to 2 decimal places.) So 60 $ 70 60 7.50 62.92 62.84 69.80 6.78 So Intrinsic Value $ 62.92 62.84 69.80 6.78 2.92 0.00 9.80 0.00 PV(X) Adjusted Intrinsic ValueGiven only the information provided, which bond would you suspect of experiencing the largest change in price if interest rates change? Coupon Current Price Remaining Term Bond A 5% $ 703.11 20 years Bond B 7% $ 932.05 10 years Bond C 11% $ 1,078.63 3 years Bond D 11% $ 1,296.89 20 years Question 19 options: Bond A Bond B Bond C Bond D