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    Bonds Valuation

    Uploaded by

    Urooj Hussain
    This document contains 17 questions about bond valuation calculations. The questions cover calculating annual interest payments, bond prices given yield to maturity, coupon rates, and current yields. They also include calculations for zero coupon bonds, as well as present and market values of bonds providing semi-annual and annual coupon payments over various time periods.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Bonds Valuation

    Uploaded by

    Urooj Hussain
    245 views2 pages
    This document contains 17 questions about bond valuation calculations. The questions cover calculating annual interest payments, bond prices given yield to maturity, coupon rates, and current yields. They also include calculations for zero coupon bonds, as well as present and market values of bonds providing semi-annual and annual coupon payments over various time periods.

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    bonds valuation formula

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    This document contains 17 questions about bond valuation calculations. The questions cover calculating annual interest payments, bond prices given yield to maturity, coupon rates, and current yields. They also include calculations for zero coupon bonds, as well as present and market values of bonds providing semi-annual and annual coupon payments over various time periods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    245 views2 pages

    Bonds Valuation

    Uploaded by

    Urooj Hussain
    This document contains 17 questions about bond valuation calculations. The questions cover calculating annual interest payments, bond prices given yield to maturity, coupon rates, and current yields. They also include calculations for zero coupon bonds, as well as present and market values of bonds providing semi-annual and annual coupon payments over various time periods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Bonds Valuation

    1. A 5-year bond with a coupon rate of 4% has a face value of $1000. What is the annual interest
    payment?

    2. A 3-year bond with 10% coupon rate and $1000 face value yield to maturity is 8% . Assuming
    annual coupon payment, calculate the price of the bond.

    3. A 10-year bond with 12.5% coupon rate and $1000 face value yield to maturity is 14.5% .
    Assuming annual coupon payment, calculate the price of the bond.

    4. A 10-year bond with 12.5% coupon rate and $1000 face value yield to maturity is 14.5% .
    Assuming semi annual coupon payment, calculate the price of the bond.

    5. A four-year bond has an 8% coupon rate and a face value of $1000. If the current price of the
    bond is $878.31, calculate current yield assuming annual interest payments.

    6. A five -year bond has an 8% coupon rate and a face value of $1000. If the current price of the
    bond is $1075, calculate current yield assuming annual interest payment.

    7. A twenty year bond is currently selling at $850 and current yield is 8%. What coupon rate
    offered by company?

    8. A twenty year bond is currently selling at $1250 and current yield is 8%. What coupon rate
    offered by company?

    9. A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the
    bond is10%, calculate the price of the bond assuming that the bond makes semi-annual coupon
    interest payments.

    10. A four-year bond has an 8% coupon rate and a face value of $1000. If the current price of the
    bond is $878.31, calculate the yield to maturity of the bond (assuming annual interest
    payments).

    11. A ten -year bond has an 10% coupon rate and a face value of $1000. If the current price of the
    bond is $1150, calculate the yield to maturity of the bond (assuming annual interest payments).
    12. Suppose you want to offer zero coupon bond with a face value of $1,000 maturing in twenty
    years. If the yield to maturity (YTM) on the bond is 8.00%, what will the price of the bond
    offered by your company?

    13. Suppose you offer zero coupon bond at $245 with a face value of $1,000 maturing in twenty
    years. If the yield to maturity (YTM) on the bond is 8.00%, what will the price of the bond after
    two years?

    14. A bond for J. Morris, Inc. a coupon rate of 6%. The yield to maturity is 7%. The bond has a
    remaining life of 20 years and makes semi-annual coupon payments? What is the present value
    of the bond’s face value?

    15. A bond for Firebird, Inc. has a coupon rate of 7%. The yield to maturity is 6.8%. The bond has a
    remaining life of 30 years and makes annual coupon payments? What is this bond’s current
    market value?

    16. A bond for J. Morris, Inc. a coupon rate of 6%. The yield to maturity is 7%. The bond has a
    remaining life of 20 years and makes semi-annual coupon payments? What is this bond’s
    current market value?

    17. A bond for Ballhawkers, Inc. has a coupon rate of 7%. The yield to maturity is 6.8%. The bond
    has a remaining life of 30 years and makes semi-annual coupon payments? What is this bond’s
    current market value?

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