A $1,000 par value bond sells for $1,216. It matures in 20
years, has a 48...
A $1,000 par value bond sells for $1,216. It matures in 20
years, has a 48 percent coupon, pays interest semiannually, and can
be called in 5 years at a price of $1197. What is the bond's Yield
-to-Call?
Solutions
Expert Solution
The answer is 39.49%.The yield to call can be obtained from two
formulae but I have applied the formulae which is most relevant.
Kindly go through handwritten answer.
Calculate the value of a bond that matures in 15 years and has a
$1,000 par value. The annual coupon interest rate is 14 percent and
the market's required yield to maturity on a comparable-risk bond
is 11 percent.
Calculate the value of a bond that matures in 16 years and has a
$1,000 par value. The annual coupon interest rate is 12 percent and
the market's required yield to maturity on a comparable-risk bond
is 16 percent.
Calculate the value of a bond that matures in 18 years and has a
$1,000 par value. The annual coupon interest rate is 13 percent and
the market's required yield to maturity on a comparable-risk bond
is 15 percent.
Calculate the value of a bond that matures in 13 years and has a
$1,000 par value. The annual coupon interest rate is 9 percent and
the market's required yield to maturity on a comparable-risk bond
is 11 percent. The value of the bond is
What is the price of a? zero-coupon ($1,000 par? value) bond
that matures in 20 years has a promised yield of 12.0?%?
The bonds price is ____? (round to the nearest cent)
A $1,000 par value bond sells for $1,216. It matures in 20
years, has a 48 percent coupon, pays interest semiannually, and can
be called in 5 years at a price of $1197. What is the bond's Yield
-to-Call?
(Bond valuation) A bond that matures in 8
years has a $1,000 par value. The annual coupon interest rate is 9
percent and the market's required yield to maturity on a
comparable-risk bond is 18 percent.
What would be the value of this bond if it paid interest
annually?
What would be the value of this bond if it paid interest
semiannually?
*Someone previously answered this with annually = $604.56 and
semiannually = $596.89 and the annual number is incorrect*
(Bond valuation) A bond that matures in 11 years has a
$1,000 par value. The annual coupon interest rate is 8 percent and
the market's required yield to maturity on a comparable-risk bond
is 13 percent. What would be the value of this bond if it paid
interest annually? What would be the value of this bond if it paid
interest semiannually? a.The value of this bond if it paid
interest annually would be $
A bond that matures in 13 years has a $1,000 par value. The
annual coupon interest rate is 11 percent and the market's
required yield to maturity on a comparable-risk bond is 17
percent.
a. What would be the value of this bond if it paid interest
annually?
b. What would be the value of this bond if it paid interest
semiannually?
A $1,000 par value bond matures in 8 years. It has a 7% coupon
rate, with semi-annual interest payments. The yield (the rate at
which investors are using to calculate the price of the bond) is
8%. What is the fair market value of the bond?