Description
What is the price of a 10-year, zero-coupon bond paying $\$1,000$ at marturity if the YTM is:
- 5 percent?
- 10 percent?
- 15 percent?
- Microhard has issued a bond with the following characteristics:
– Par: $\$1,000$
– Time to maturity: 25 years
– Coupon rate: 7 percent
– Semiannual payments
Calculate the price of this bond if the YTM is:
- 7 percent
- 9 percent
- 5 percent
- Watters Umbrella Corp. issued 12-year bonds 2 years ago at a coupon rate of 7.8 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
- Hacker Software has 7.4 percent coupon bonds on the market with 9 years to maturity. The bonds make semiannual payments and currently sell for 96 percent of par. What is the YTM?
- Pembroke Co. wants to issue new 20-year bonds for some much needed expansion projects. The company currently has 10 percent coupon bonds on the market that sell for $\$1,063$, make semiannual payments, and mature in 20 year. What coupon rate should the company set on its new bonds if it wants them to sell at par?
- Please write 2 additional bond pricing homework problems that are plausible and solve them them with your code.
- Please write 2 additional bond yield-to-maturity homework problems at are plausible and solve them with your code. Please compare with `numpy_financial`’s `irr` method.
