Step 1: Determine Stocks + Bonds First, determine the mix of stocks and bonds she...
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Step 1: Determine Stocks + Bonds First, determine the mix of stocks and bonds she should have. To do this, you will need to solve the 10 bond problems in the box below for one missing item.
10 Bond Problems
A 5-year bond issued by Bank of America with a 3.8% coupon and a 4.5% yield to maturity.
A 10-year Treasury bond with a 3.7% yield to maturity and a 3.5% coupon.
An 8-year Treasury bond paying $19 every six months and a 3.4% annual yield to maturity.
A 2-year bond issued by Duke Energy with a 4% coupon and 3.9% market interest rate.
A development bond issued by the new St. Louis soccer stadium developers, priced at $1,234.48 per bond, with a market interest rate of 4.5% and a 25-year life.
A 15 semi-annual year Treasury bond with a yield to maturity of 3.1% and a price of $1000.
An Apple corporate bond with 8 years left to maturity is priced at $984.24 and a market rate of 3%.
A 1-year Treasury, priced at $1,015.34, paying $37 annually.
A 4-year bond from Walmart with a $24 interest payment every six months is priced at $1,085.43.
A 3-year Treasury bond with a 3.1% coupon is priced at $985.24.
1-4 present value
5-7 periodic coupon payment
8-10 yield rate
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