Question
In: Finance
A 10-year, 12 percent semiannual coupon bond, with a par value of GH¢1,000, may be called...
A 10-year, 12 percent semiannual coupon bond, with a par value of
GH¢1,000, may be called in 4 years at a call price of GH¢1,060. The
bond sells for GH¢1,100. (Assume that the bond has just been
issued.)
(i) What is the bond's yield to maturity?
(ii) What is the bond's current
yield?
(iii) What is the bond's capital gain or loss
yield?
(iv) What is the bond's yield to call?
Solutions
jeff jeffy answered 4 months agoRelated Solutions
A 10-year, 12 % semiannual coupon bond with a par value of $1,000 may be called...
A 10-year, 12 % semiannual coupon bond with a par value of
$1,000 may be called in 5 years, at a call price of $1,060. The
bond sells for $1,300. (Assume the bond has just been issued).
a. What is the bond’s yields to maturity?
b. What is the bond’s current yield?
c. What is the bond’s capital gain or loss yield in the first
year?
d. What is the bond’s yield to call?
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in...
A
20-year, 8% semiannual coupon bond with a par value of $1,000 may
be called in 5 years at a call price of $1,040. The bond sells for
$1,100. (Assume that the bond has just been issued.)
Basic Input Data:
Years to maturity:
20
Periods per year:
2
Periods to maturity:
40
Coupon rate:
8%
Par value:
$1,000
Periodic payment:
$40
Current price
$1,100
Call price:
$1,040
Years till callable:
5
Periods till callable:
10
a. What is the
bond's...
A 15-year, 14% semiannual coupon bond with a par value of $1,000 may be called in...
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...
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. ________ %...
Suppose a 10-year, 10 percent, semiannual coupon bond with a par value of $1,000 is currently...
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
Assuming semiannual compounding, a 10-year zero coupon bond with a par value of $1,000 and a...
Assuming semiannual compounding, a 10-year zero coupon bond with
a par value of $1,000 and a required return of 11.8% would be
priced at _________.
$317.75
$327.78
$894.45
$944.29
Company issued 10-year, 11 percent coupon bond with a par value of $1,000. The bonds may...
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 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a...
A 6 percent coupon bond that has a $1,000 par value, semiannual
coupon payments and a yield to maturity of 5.25 percent. The bond
matures in 9 years.
What is the price of the bond, What will happen to the price if
market interest rates rise to 6.45 percent, what can you say about
the relationship between the price of a bond and the market
interest rate?
A 15-year, $1,000 par value, 10% semiannual coupon bond has a price of $1,190 and it...
A 15-year, $1,000 par value, 10% semiannual coupon bond has a
price of $1,190 and it is callable in 5 years at a call price of
$1,050. What is the bond’s nominal yield to call (YTC)?
a.
6.37%
b.
6.73%
c.
7.60%
d.
7.83%
e.
3.18%
A 15-year, $1,000 par value, 10% semiannual coupon bond has a price of $1,190 and it...
A 15-year, $1,000 par value, 10% semiannual coupon bond has a
price of $1,190 and it is callable in 5 years at a call price of
$1,050. What is the bond’s nominal yield to call (YTC)?
a.
6.37%
b.
6.73%
c.
7.60%
d.
7.83%
e.
3.18%
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