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- Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of j2 = 1.69% p.a. and a face value of $100. This corporate bond matures at par. Its maturity date is 1 January, 2025. The yield rate is assumed to be j2 = 10.9% p.a. Assume that this corporate bond has a 6% chance of default in any six-month period during its term. Assume, also, that, if default occurs, Georg will receive no further payments at all. Calculate Georg's purchase price. Round your answer to three decimal places. Answer a. $59.319 b. $81.541 c. $80.092 d. $53.631Today is 1 July, 2022, Georg plans to purchase a corporate bond with a coupon rate of j2 = 6.96% p.a. and a face value of $100. This corporate bond matures at par. Its maturity date is 1 January, 2025. The yield rate is assumed to be j2 = 2.2% p.a. Assume that this corporate bond has a 11% chance of default in any six-month period during its term. Assume, also, that, if default occurs, Georg will receive no further payments at all. Calculate Georg's purchase price. Round your answer to three decimal places.A $11,000 bond with a coupon rate of 5.35% is redeemable on July 01, 2031. It is purchased on February 10, 2025 when the yield rate is 5.85% compounded semi- annually. Please include a well-labelled timeline diagram. a. What is the purchase price of the bond? Round to the nearest cent b. What is the amount of discount or premium on the bond?
- Do all 3 parts Its 1 July 2020. Greg is planning to purchase a corporate bond with a coupon rate of j2 = 1.68% p.a. and face value of 1000. This corporate bond matures at par. The maturity date is 1 July 2022. The yield rate is assumed to be j2 = 6.15% p.a. Assume that this corporate bond has a 3.69% chance of default in the first six-month period (i.e., from 1 July 2020 to 31 December 2020) and this corporate bond has a 3.01% chance of default in any six-month period during the term of the bond except the first six-month (i.e., 3.01% chance of default in any six-month from 1 January 2021 to 1 July 2022). Assume also that, if default occurs, Greg will receive no further payments at all. Australian bonds (a) What is the expected coupon payment on 1 January 2021? a. 7.8487 b. 8.1472 c. 8.0900 d. 7.8465 (b) What is the expected coupon payment on 1 January 2022? a. 6.9494 b. 7.8465 c. 7.6103 d. 7.5570 (c) Calculate the purchase price of this corporate bond. Round your answer to…On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 5.6s34" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 6.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices a. $883.78 b. $889.60 c. $885.22 d. $886.60 e. $887.12On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 5.8% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) $1.152.74 O $1,15411 $1.155.30 $1.156.25 O$1,158.85
- At the end of March 2019, a Zambian corporate bond had a coupon rate of 6%, a par (face) value of K1,000 and will mature in March 2022. Market rates of interest are currently 4.5%.Required:A. Using the data given above and assuming semi-annual coupons and a semi-annual discount rate equal to 2.25%, calculate the value of the corporate bond.B. Calculate the Macaulay duration of the Zambian corporate bond described above assuming annual coupons and discount rate.C. Explain Macaulay duration and describe the main characteristics of Macaulay duration in relation to bonds.D. Explain modified duration and explain the limitations of using this measureOn May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 8.2s45" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 7.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices $1,029.11 $1,034.52 $1,033.68 $1,030.95 $1,032.06A corporate bond with a coupon rate of 7% pays interest semiannually and has a maturity date of May 28, 2030. The trade settles on March 20, 2023. The yield to maturity is 10%.What is the flat (or clean) price of the bond (in percent of par) on the settlement date? Use Excel's PRICE() function. Dates must be entered with Excel's DATE() function. ...
- On January 2021, you buy a 10-year coupon bond with coupon payments of $10,000 per year and a final value of $100,000. The yield to maturity of this bond is 10 percent. On January 2022, you collect your first coupon and sell the bond in the bond market. On January 2022 the yield to maturity of this bond decreases to 8 percent. Calculate the following: a. holding period return rate b. current yield rate c. capital gain rate Please include formulas and calculationsA) Find the price of a 5 year bond trading at a yield to maturity of 5.75% and has a coupon of 6% paid semi- annually. Assume you buy the bond on October 25, 2021 and it matures on October 25, 2026. B) Suppose the bond is callable in 3 years at $ 110. Using the price calculated above find the yield to call.A $18,000 face value bond matures on August 3, 2024, and carries a coupon of 6.55%. It is sold on February 3, 2009, for $20,557.32. Determine the yield to maturity?