6)
Suppose a 5-year, $1,000 bond with annual coupons has a price
of $960 and a yield to maturity of 6%.
What is the bond's coupon rate? The coupon rate is
----------%. (Round to two decimal places.)
7)
Suppose a 5-year, $1,000 bond with annual coupons has a price
of $960 and a yield to maturity of 6%.
What is the bond's coupon rate? The coupon rate is
----------%. (Round to two decimal places.)
12)
Colgate-Palmolive Company has just paid...
Suppose a ten-year bond $1,000 bond with a 5% coupon rate that
pays annual coupons is initially trading at par (at $1,000). After
5 years time, the bond’s yield to maturity falls to 4%. If you sell
the bond after 5 years, what price will you receive
A 10 year 1000 bond with 7% semi-annual coupons is bought for a
price to yield 6.5% conv. semiannually. It is bought on Feb 1,
2003. Find the actual selling price on Dec. 31, 2003. Find the
price quoted in paper (full) on Dec 31, 2003. Use 30/360.
Consider a five-year, default-free bond with annual coupons of
6% and a face value of $1,000 and assume zero-coupon yields on
default-free securities are as summarized in the following
table:
Maturity
1 year
2 years
3 years
4 years
5 years
Zero-Coupon Yields
5.00%
5.30%
5.50%
5.70%
5.80%
a. What is the yield to maturity on this bond? The yield to
maturity on this bond is ............% (Round to three decimal
places.)
b. If the yield to maturity on this...