Entries by Hannah Wangui

Bond

Question A 10-year, 5% bond pays semi-annual coupon payments. If the face value is $1,000 but the bond sells for $1,050, what is the annualized yield on the bond? A) 2.4% B) 6.3% C) 4.4% D) 5.5% E) 18.0%   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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Risk associated with investing

Question Which of the following is NOT a type of risk associated with investing in fixed-income securities?   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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Bonds

Question If there are two $1,000 bonds that pay semi-annual coupons, one with a 30-year maturity and the other with a 10-year maturity and both with a coupon rate of 10%, what will happen to their values if market interest rates fall to 8%? A. The value of the 30-year bond will be $90.33 lower […]

 

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zero coupon 5-year bond (semi-annual)

Question Calculate the value of a zero coupon 5-year bond (semi-annual) with a face value of $1,000. Assume the market rate is 10%. A. $702 B. $614 C. $866 D. $1,195 E. $652   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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