A $1,000 par value 12-year bond with a 14 percent coupon rate
recently sold for $925. What is the yield to maturity? Assume
semiannual payments and submit your answer as a percentage rounded
to two decimal places.
To answer the question:
(1) Describe and interpret the assumptions related to the
problem.
(2) Apply the appropriate mathematical model to solve the
problem.
(3) Calculate the correct solution to the problem.
A $1,000 par value 8-year bond with a 13 percent coupon rate
recently sold for $980. What is the yield to maturity if the bond
makes semiannual payments? Submit your answer as a percentage
rounded to two decimal places.
Describe and interpret the assumptions related to the
problem.
Apply the appropriate mathematical model to solve the
problem.
Calculate the correct solution to the problem.
Consider a 7 year bond with face value $1,000 that pays an 8.4%
coupon semi-annually and...
Suppose a 10-year, 10 percent, semiannual coupon bond with a par
value of $1,000 is currently selling for $1,135.90, producing a
nominal yield to maturity of 8 percent. However, the bond can be
called after 5 years for a price of $1,050.
a. What is the bond's nominal yield to call (YTC)?
b. If you bought this bond, do you think you would be more
likely to earn the YTM or the YTC? Why
Consider a bond with a par value of $1,000, a coupon rate of 8%,
and 10 years until maturity. What is the most you should pay for
this asset if your required rate of return for assets like this is
5% and the coupon payments are paid annually? How does your answer
change if the bond is semi-annual? Does the semi-annual bond sell
at a premium or a discount?
You are considering a 10-year, $1,000 par value bond. Its coupon
rate is 10%, and interest is paid semiannually. If you require an
"effective" annual interest rate (not a nominal rate) of 11.2510%,
how much should you be willing to pay for the bond? Do not round
intermediate calculations. Round your answer to the nearest
cent.
Company issued 10-year, 11 percent coupon bond with a par value
of $1,000. The bonds may be called in 5 years at a call price of
$1,150. The bond currently sells for $1,350.
You are required to answer the following questions:
a) What is the bond's yield to maturity?
b) What is the bond's current yield?
c) What is the bond's capital gain or loss yield?
d) What is the bond's yield to call?
e) If you bought this bond...
A 14-year, semiannual coupon bond sells for $974.17. The bond
has a par value of $1,000 and a yield to maturity of 6.54 percent.
What is the bond's coupon rate?
8. What is the YTM of a $1,000 par value bond with a 10% coupon
rate, semi-annual coupon payments, and 9 years to maturity if the
bond currently sells for $900? Round to the nearest hundredth
percent. Do not include a percent sign in your answer. (i.e. If
your answer is 4.32%, then type 4.32 without a % sign)
9. Ford Motors’ bond is currently traded at the value of
$1,208.70 and a yield of 4.22%. The current rating of...
A 15-year, 14% semiannual coupon bond with a par value
of $1,000 may be called in 4 years at a call price of $1,075. The
bond sells for $1,050. (Assume that the bond has just been
issued.)
1 What is the bond's yield to maturity? Round your
answer to two decimal places
2What is the bond's current yield? Round your answer
to two decimal places
3 What is the bond's capital gain or loss yield? Loss
should be indicated with...
A 15-year, 14% semiannual coupon bond with a par value of $1,000
may be called in 4 years at a call price of $1,075. The bond sells
for $1,050. (Assume that the bond has just been issued.) What is
the bond's yield to maturity? Do not round your intermediate
calculations. Round your answer to two decimal places. ________ %
What is the bond's current yield? Do not round your intermediate
calculations. Round your answer to two decimal places. ________ %...