A level coupon bond

Related BrainMass Solutions

• Greater interest rate risk

  a) the 10-year, 6% coupon bond b) the 5-year, 4% coupon bond c) both bonds have the same level of interest rate risk d) there is not sufficient information to answer this question Which has greater interest rate risk, a newly issued 10-year bond with

• Calculating expected mean, variance and standard deviation

  five-year zero coupon bond whose face value is $1,000.

• Finance problems: NPV, Freddie Industries bond, break even l

  2-A Freddie Industries $10,000 bond was issued with a 6% coupon rate and will mature in 20 years. Assume that they pay the coupon payment once a year and the current market return for a similar bond is 7%.

• Construct synthetically a zero-coupon bond from coupon bonds

  How can I construct synthetically a 3-year zero-coupon bond?

• Price of Bonds using Excel

  Since the bond is selling at par , YTM = coupon rate= 10% What was the price of the bond on January 1, 1986, five years later, assuming that the level of the interest rates had fallen to 10%.

• Bond features and pricing explained in everyday language

  Bond 8 has an 8% annual coupon Bond 10 has a 10% annual coupon Bond 12 has a 12% annual coupon Bond 10 sells at par.

• A 20-year bond with a 7.50% semi-annual coupon bond

  A 20-year bond with a 7.50% semi-annual coupon bond was sold at par 10 years ago. Now the 10-year semi-annual payment corporate bond has a required return (or YTM) of 8.25%. Calculate the bond's market price. The par level of bonds is $1000.

• Corporate Bond Analysis and Valuation

  Each of these rating agencies has a committee that evaluates the risk level of a company's bond issue and accordingly assigns a rating ranging from AAA (best rating) down to D (default).

• Callable Bonds, Market Price, and Applicable interest rate

  level.