Question
In: Finance
Yield to maturity. What is the yield of each of the followingbonds,, if interest (coupon)...
Yield to maturity. What is the yield of each of the following bonds,, if interest (coupon) is paid semiannually?
a. What is the yield of the following bond if interest (coupon) is paid semiannually?
(Round to two decimal places.)
Par Value | Coupon Rate | Years to Maturity | Yield to Maturity | Price | ||
$5,000.00 | 11% | 30 | ? | $6,030.00 | ||
$5,000.00 | 8% | 5 | ? | $5,000.00 | ||
$1,000.00 | 12% | 5 | ? | $1,200.00 | ||
$1,000.00 | 6% | 20 | ? | $590.00 | ||
Solutions
Expert Solution
Ans:- we will use the RATE function of excel to find the YTM.
RATE function of excel is given by =RATE(nper,pmt,pv,fv), where nper is the number of periods, pmt is the periodic payment, pv is the price of the bond and fv is the future or par value of the bond.
Pmt is calculated by Par Value * coupon rate / 2.
jeff jeffy answered 1 year agoRelated Solutions
Yield to maturity. What is the yield of each of the following bonds, if interest (coupon)...
Yield to maturity. What is the yield of each of
the following bonds, if interest (coupon) is paid annually?
a. What is the yield of the following bond if interest (coupon)
is paid annually? (Round to two decimal places.)
Data Table
Par Value
Coupon Rate
Years to Maturity
Yield to Maturity
Price
$1,000.00
10%
30
?
$900.00
$5,000.00
6%
10
?
$5,300.00
$5,000.00
8%
10
?
$5,730.00
$1,000.00
7%
5
?
$800.00
Yield to maturity. What is the yield of each of the following bonds if interest (coupon)...
Yield to maturity. What is the yield of each of
the following bonds if interest (coupon) is paid
semiannually? (Round to two decimal places.)
Par Value
Coupon Rate
Years to
Maturity
Yield to
Maturity
Price
$1,000.00
12%
15
?______
$1,000.00
$5,000.00
11%
10
?______
$6,010.00
$5,000.00
8%
25
?______
$7,120.00
$1,000.00
7%
30
?______
$700.00
What is the yield of each of the following bonds if interest (coupon) is paid annually...
What is the yield of each of the following bonds if interest
(coupon) is paid annually ?
Par Value
Coupon Rate
Years to
Maturity
Yield to
Maturity
Price
$1,000.00
8%
20
?
$800.00
$1,000.00
9%
5
?
$1,000.00
$5,000.00
5%
30
?
$4,310.00
$5,000.00
7%
5
?
$4,260.00
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