Question
In: Finance
suppose a seven-year, $1000 bond with a 7.9% coupon rate and semiannual coupons is trading with...
suppose a seven-year, $1000 bond with a 7.9% coupon rate and
semiannual coupons is trading with a yield to maturity of
6.33%
if
the yield to maturity of the bond rises to 7.29% (APR with
semiannual compounding), what price will the bond trade for?
Solutions
Expert Solution
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
As nothing was mentioned excel is used. If you need with financial formula, let me know, will do that also. Thank you.
As nothing is mentioned, we assume that YTM has increased immediately.
jeff jeffy answered 1 month agoRelated Solutions
Suppose a seven-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with...
Suppose a seven-year, $1000 bond with an 8% coupon rate and
semiannual coupons is trading with a yield to maturity of
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Is this bond currently trading at a discount, at par, or at a
premium? Explain.
If the yield to maturity of the bond rises to 7.00%
(APR with semiannual compounding), what price will the
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**please list out step by step actions, please show the
formulas used, please DONT USE excel**
Suppose a seven-year, $1,000 bond with a 7.5% coupon rate and semiannual coupons is trading with...
Suppose a seven-year,
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bond with
a
7.5%
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a. Is this bond currently trading at a discount, at par, or at
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b. If the yield to maturity of the bond rises to
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Suppose a seven-year, $1,000 bond with an 8.3% coupon rate and
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a. Is this bond currently trading at a discount, at par, or at
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b. If the yield to maturity of the bond rises to 7.42% (APR
with semiannual compounding), what price will the bond trade
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Suppose a seven-year, $1,000 bond with a 8.03 % coupon rate and
semiannual coupons is trading with a yield to maturity of
6.57%.
a. Is this bond currently trading at a
discount, at par, or at a premuim? Explain.
b. If the yield to maturity of the bond rises
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Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading with...
Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and
semiannual coupons is trading with a yield to maturity of
6.39%.
a. Is this bond currently trading at a discount, at par, or at
a premium? Explain.
b. If the yield to maturity of the bond rises to 7.09%
(APR with semiannual compounding), what price will the bond
trade for?
a. Is this bond currently trading at a discount, at par, or at
a premium? Explain. (Select the best...
Suppose a seven-year, $1,000 bond with a 8.58% coupon rate and semiannual coupons is trading with...
Suppose a seven-year, $1,000 bond with a 8.58% coupon rate and
semiannual coupons is trading with a yield to maturity of
7.09%.
a. Is this bond currently trading at a discount, at par, or at
a premuim? Explain.
b. If the yield to maturity of the bond rises to 7.40% (APR
with semiannual compounding), at what price will the bond
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a. Is this bond currently trading at a discount, at par, or at
a premuim? Explain.
The bond is...
Suppose an eight-year, $1000 bond with a 6% coupon rate and semiannual coupons is trading with...
Suppose an eight-year, $1000 bond with a 6% coupon rate and
semiannual coupons is trading with a yield to maturity 5%.
a. What price is this bond currently trading at?
b. If the yield to maturity of e bond falls to 4% with
semiannual compounding what price will the bond trade at?
Suppose a? ten-year, $ 1000 bond with an 8.1 % coupon rate and semiannual coupons is...
Suppose a? ten-year, $ 1000 bond with an 8.1 % coupon rate and
semiannual coupons is trading for $ 1034.99. a. What is the? bond's
yield to maturity? (expressed as an APR with semiannual?
compounding)? b. If the? bond's yield to maturity changes to 9.5 %
?APR, what will be the? bond's price? (Round to two decimal?
places.)
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is...
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and
semiannual coupons is trading for $ 1035.41.
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b. If the bond's yield to maturity changes to 9.1 % APR, what
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Suppose a ten-year,
$ 1000 bond with an
8.5 % coupon rate and semiannual coupons is trading for
$ 1034.55
.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)? ___________
b. If the bond's yield to maturity changes to
9.9 %
APR, what will be the bond's price?
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
The bond's yield to maturity is? ______ Round to two...
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