Strip a US Treasury bond and name the strips. Bond is 100 000 par value, 2.2% coupon and it is paid semiannually. Market rate is 1.8% show work in excel.
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Strip a US Treasury bond and name the strips.
Bond is 100 000 par value, 2.2% coupon and it is paid semiannually.
Market rate is 1.8%
show work in excel.
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- Treasury bond issued by U.S. government has 7 years of maturity. Coupon rate is 6% paid annually, Face value is $1000 and yield to maturity (Kd) equals 5%. 1. What is the price of bond (VB)? Find the discount or premium amount? 2. Calculate the current yield and expected capital gain yield? 3. If the discount rate is expected to raise up to 8%. What is the bond current market price (VB)?Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place 30. Redstar Air plans to issue a $1000 par value, 12-year, quarterly (i.e., 4 times per year) payment bond with anannual coupon rate of 6.52%. If the bond’s yield to maturity is 4.82%, what will Redstar Air’s bond sell for?31. Graystar Air plans to issue a $1000 par value, 24-year, monthly (i.e., 12 times per year) payment bond withan annual coupon rate of 12.2%. If the bond’s yield to maturity is 14.4%, what will Graystar Air’s bond sellfor?Determine the price of a single bond given the following information. Round your final answer to two decimal places. For example, if your answer is $89.12, enter 89.12 with no currency symbol. 4.39% Cost of Debt (Kd) The company is expected to pay the following forecasted CFFD (Cash Flows For Debt): Year 1: $50.00 interest payment Year 2: $50.00 interest payment Year 3: $50.00 interest payment Year 4: $50.00 interest payment Year 5: $50.00 interest payment The company will also pay the bond's face value of $1,000.00 at the end of year 5. The company faces a 25% tax rate. Type your answer...
- Find the total proceeds (in $) from the sale of 20 bonds with a coupon rate of 8.75 and a current price of 96.575. (Round your answer to the nearest cent.) The commission charge is $4.00 per bond. The date of the transaction is 145 days since the last interest payment. 2$ Need Helln? Read It Watch I Master ltBank A issues a bond with a maturity of 3 years, par value of $1,000,000, and annual coupon rate of 2%. Company B buys this bond at date 0. 1. in this situation, who lends money and who borrows money? 2. what are the cash flows received by B if it decides to hold the bond until maturity?Given below is information about three RM $5000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value..... Bonde 14 2 34 Coupon Rate (%)< 10€ 124 14€ Maturity (years) 5€ 10€ 15€ Using the above table, if the company decided to pay coupon annually (12%), calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value. ..... Explain the of Bons available in the market for the Companies to raise fund....... Is there any difference in the value of semiannually and annually....
- A bond pays interest yearly has a face value of $1,000, a coupon rate of 9%, four (4) years until maturity, while the market rate for bonds of a similar rating is 6% at the time. Determine the change in price if the YTM rate changes to 7% from the original 9%. Seleccione una: a. $-33.19 b. $-54.88 C. $69.15 d. $74.19Q1. Suppose Salalah international Co. issues bonds in Muscat security Exchange. The face value of bond is 5000 OMR and pays 4 percent interest rate.These bonds will mature in 4 years, and the yield to maturity is 7 percent. A. Calculate the interest payment generated by bond B. Calculate the fair value for this bond.Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place 34. Pennypacker Industries needs to raise $40,000,000 by issuing bonds. The company plans to issue a $1000 parvalue, 16-year semi-annual payment bond that has a coupon rate of 4.40%. The yield to maturity on the bondis expected to be 4.70%. How many bonds must Pennypacker Industries issue? Round your answer up to thenearest whole number (i.e., no decimal places); for example, enter 112,304.874 or 112,304.128 as 112305.35. Compute the price of a $5000 par value bond with a coupon rate of 7.15% (semi-annual payments) and 29years remaining to maturity. Assume that the current yield to maturity on the bond is 8.60%
- S A 19-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.00% (2.500% of face value every six months). The reported yield to maturity is 4.8% (a six-month discount rate of 4.8÷2=2.4%). a. What is the present value of the bond? b-1. If the yield to maturity changes to 1%, what will be the present value? b-2. If the yield to maturity changes to 8%, what will be the present value? b-3. If the yield to maturity changes to 15%, what will be the present value? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Present value b-1. Present value b-2. Present value b-3. Present value $ $ 25.00 361.64Compute the price of the following bonds: Bond A: Coupon bond, 4% coupon paid semi-annually, with maturity of 14 years. Bond B: Zero coupon bond with maturity of 7 years. Bond C: Coupon bond, 7.75% coupon paid yearly, with maturity 10 years. Assume that all 3 bonds have the same nominal: 1000 euro. Your required rate of return is the same for each bond and equal to 6%.A. Given below is information about three RM $5000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value...... Bonde Coupon Rate (%)* Maturity (years) 14 10€ 5€ 24 124 10€ 34 144 15€ B. Using the above table, if the company decided to pay coupon annually (12%), calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value........ ↑. t. t. t. C. Explain the of Bons available in the market for the Companies to raise fund...... Is there any difference in the value of semiannually and annually......