We're Open
+44 7340 9595 39
+44 20 3239 6980

# [Solved]a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, discount or par.

100% Pass and No Plagiarism Guaranteed

# Interest and Investing Research Assignment Paper

INSTRUCTIONS:

Jason Greg is a recent retiree who is interested in investing some of his savings in corporate bonds. Listed below are the bonds he is considering adding to his portfolio.
Bond A has a 7.5% semiannual coupon, matures in 12 years, and has a \$1,000 face value. Bond B has a 10% semiannual coupon, matures in 12 years, and has a \$1,000 face value. Bond C has an 11.5% semiannual coupon, matures in 12 years, and has a \$1,000 face value.
Each bond has a YTM of 10%.
a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, discount or par.
b. Calculate the price of each of these bonds.
c. Calculate the current yield for each bond.
d. If the yield to maturity for each bond remains at 9%, what will be the price of each bond 1 year from now?
e. Price each bond and explain how the number of years to maturity and the coupon rate affect the current price of bonds. Assume a YTM of 7%.
1. A 4-year bond with a 9% annual coupon
2. A 4-year bond with a zero coupon
3. A 15-year bond with a 9% annual coupon
4. A 15-year bond with a zero coupon
Provide a written explanation of calculations.

CONTENT:

Interest and Investing
Name
Institution
Date
Jason Greg is a recent retiree who is interested in investing some of his savings in corporate bonds. Listed below are the bonds he is considering adding to his portfolio.

...

100% Plagiarism Free & Custom Written,

International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

## STILL NOT CONVINCED?

View our samples written by our professional writers to let you comprehend how your work is going to look like. We have categorised this into 3 categories with a few different subject domains

View Our Samples

#### We offer a £ 2999

If your assignment is plagiarised, we will give you £ 2999 in compensation

Nov,04,2021

Nov,04,2021

Nov,04,2021

### Details

• Title: [Solved]a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, discount or par.
• Price: £ 89
• Post Date: 2021-11-05T12:34:26+00:00
• Category: Essays
• No Plagiarism Guarantee
• 100% Custom Written

### Customer Reviews

[Solved]a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, discount or par.
Reviews: 5

### A masterpiece of assignment by Izkiyah , written on 2020-03-12

The support team is quite friendly and gives you the best solutions. I literally came here crying and went smiling like an idiot. My HR assignment is written beautifully with all the specifications I wanted. This is the best platform to get helped in assignments for me. All the people are supportive. Keep it up you all!
Reviews: 5

### A masterpiece of assignment by Donna , written on 2020-03-12

Very professional and effective assignment writing service.