Finance – Bond, Stocks etc.

___A 20-year original maturity bond with 1 year left to maturity has more interest rate price risk than a 10-year original maturity bond with 1 year left to maturity. (Assume that the bonds have equal default risk and equal coupon rates.)
__You have just noticed in the financial pages of the local newspaper that you can buy a bond ($1000 par) for $800. If the coupon rate is 10 percent with annual interest payments, and there are 10 year to maturity, should you make the purchase if your required return on investments of this type is 12 percent?
__A bond with a $100 annual interest payment and $1000 face value with five years to maturity (not expected to default) would sell for a premium if interest rates were below 9% and would sell for a discount if interest rates were greater than 11%.
__If a bond is callable, and if interest rates in the economy decline, then the company can sell a new issue of low-interest-rate bonds and use the proceeds to “call” the old bonds in and have effectively refinanced at a lower rate.
__If you buy a bond that is selling for less than its face, or maturity, value then the price (value) of the bond will increase the maturity date nears if market interest rates do not change during the life of the bond.
__If we have two bonds with a simple interest rate yield of 9% where one bond is compounded quarterly and the other bond is compounded monthly, the bond compounded quarterly will have a higher effective annual yield.

Stephanie just purchased a corporate bond that matures in three years. The bond has a coupon interest rate equal to 9 percent and its yield to maturity is 6 percent. If market conditions do not change – that is market interest rates remain constant – and Stephanie sells the bond in 12 months, what will be her capital gain from holding the bond?
a. Positive; because she bought the bond for a discount, which means its price has to increase as the maturity date nears.
b. Negative; because she bought the bond for a premium, which means its price has to decrease as the maturity date nears.
c. Zero, because she must have bought the bond for par, which means its price will not change as the maturity date nears.
d. This question cannot be answered, because the face (maturity) value of the bond is not given.
e. None of the above is correct.

You have just purchased a 10-year, $1000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid each 6 months. If you expect to earn a 10 percent simple rate of return on this bond, how much did you pay for it?
a. $1,122.87
b. $1,003.42
c. $875.38
d. $950.75
e. $812.15

Assume that you wish to purchase a 20-year bond that has a maturity value of $1000 and makes semiannual interest payments of $40. If you require a 10 percent simple yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
a. $619
b. $674
c. $761
d. $828
e. $902

A $1000 par value bond pays interest of $35 each quarter and will mature in 10 years. If yours simple annual required rate of return is 12 percent with quarterly compounding, how much should you be willing to pay for this bond?
a. $941.36
b. $1,051.25
c. $1,115.57
d. $1,391.00
e. $825.49

Assume that a 15-year, $1000 face value bond pays interest of $37.50 every 3 months. If you require a simple annual rate of return of 12 percent, with quarterly compounding, how much should you be will to pay for this bond?
a. $821.92
b. $1,207.57
c. $986.43
d. $1,120.71
e. $1,358.24

Cold Boxes Ltd. has 100 bonds outstanding (maturity value = $1,000). The required rate of return on these bonds is currently 10 percent, and interest is paid semiannually. The bonds mature in 5 years, and their current market value is $768 per bond. What is the annual coupon interest rate?
a. 8%
b. 6%
c. 4%
d. 2%
e. 0%

Rick bought a bond when it was issued by Macroflex Corporation 14 years ago. The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years. Interest is paid every six months; the next interest payment is scheduled for six months from today. If the yield on similar risk investments is 14 percent, what is the current market value (price) of the bond?
a. $841.15
b. $1,238.28
c. $904.67
d. $757.26
e. $844.45

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with AssignmentHelpWeb
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business Studies
Excellent service - thank you!
Customer 452469, February 20th, 2023
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
Public Administration
Excellent timely work
Customer 452451, April 19th, 2023
Business Studies
Thank you!
Customer 452451, November 27th, 2022
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
Business Studies
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
excellent loved the services
Customer 452443, September 23rd, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat