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- Use the information for the question(s) below. The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 9.0%, then the price at which this bond trades will be closest to: OA. $919. OB. $1000. OC. $1086. OD. $946.Use the information for the question(s) below. The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.5%, then this band will trade at A) par B) a discount. C) a premium. D) None of the aboveThe Sisyphen Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.8% and that coupon are to be made Assuming the appropriate YTM on the Sisyphean bond is 9.9%, then the price that this bond trades for will be closest to OA $752 OB. $940 OC. $1,316 OD. $1.128
- A bond has following characteristics: it was issued on 14.06.2018 and has 10 years to maturity. Coupon is paid semi-annually and carries interest rate of 3,2%. Market interest rate is currently 2,9% for similar issues. Investor purchased the bond on 19.11.2021. a. Calculate MacDuration b. Calculate ModDuration c. When market interest rates increase by 50 basis points, calculate price effect using results obtained in question (b)↓ The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.5%, then the price that this bond trades for will be closest to: OA. $4,841 OB. $4,034 OC. $5,648 OD. $3,227The Salem Company bond currently sells for $848.55, has a coupon interest rate of 14%and a $1000 par value, pays interest annually, and has 16 years to maturity. a. Calculate the yield to maturity (YTM) on this bond. b. Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond.
- A bond, with a par value of $1000 and is redeemable at par, pays semiannual coupons at a coupon rate 12%. The bond is priced to yield 8% compounded semiannually. The bond matures on 4/1/22 and is purchased with a settlement date of 9/22/19. Use the Semi - Theoretical Method to calculate the following as of the settlement date. Check to see if you are calculating the number of days between the last book value and the settlement date correctly. Give your answers to two decimal places. (A) Flat price(full price) = 87.61 Incorrect: Your answer is incorrect. (B) Accrued Coupon (accrued interest) = (C ) Market Price(clean price) =The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 9.5% and that the coupon payments are to be made semannually.Assuming the appropriate YTM on the Sisyphean bond is 7.4%, then this bond will trede at A a premium. B. par c. a discount. D. none of the aboveThe face value of the bond is $10,000 with annual coupon payment. The maturity period is 6 years with the duration of 5.37 years and YTM of 14%. Determine the current market price of the bond. Answer Choices: a. The current market price of the bond is $10,000.00 b. The current market price of the bond is $6,315.26 c. The current market price of the bond is $8,051.02 d. The current market price of the bond is $7,448.90
- A fixed-income analyst, Sean, observes a 7-year, 8% semiannual-pay bond. the face amount is ¥1,000. He believes that the yield-to-maturity (YTM) on a semiannual bond basis should be 12.29%. Based on this yield estimate, the price of this bond would be A. ¥942.73. B. ¥900.89. C. ¥828.39. D. ¥802.40.The S.Alam Company bond currently sells for $955, has a 12% coupon rate and a $1,000 par value, pays interest annually, And has 15 years to maturity. Calculate the approximate yield to maturity on this bond through trial and error Explain the relationship that exists between the coupon rate and yield to maturity and the par value and market value of a bond.Assume that a company issues a new bond with a coupon rate of 13 %, 7% yield and $110 par value bond. Coupon is paid annually. The band has three years to maturity. Calculate and interpret the Macaulay duration of this bond? (ii) Discuss about some possible limitations of the Macaulay duration.