Two years ago, Weslo Corp. issued 25-year bonds at a coupon rate of 5.3 % paid...

Two years ago, Weslo Corp. issued 25-year bonds at a coupon rate of 5.3 % paid semi-annually. If the current price of these bonds is 105% of par value, what is YTM?

Select one:

a. 4.9%

b. 4.93%

c. 4%

Solutions

Expert Solution

Ans is b.4.93%

Calculations-

As no method was mentioned I have solved the problem using excel function.

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Northern Corp. issued 15-year bonds two years ago at a coupon rate of 6.25 percent.

Northern Corp. issued 15-year bonds two years ago at a coupon rate of 6.25 percent. The bonds make semiannual payments. If these bonds currently sell for 102.50 percent of par value, what is the YTM?

Heginbotham Corp. issued 10-year bonds two years ago at a coupon rate of 9 percent. The...

Heginbotham Corp. issued 10-year bonds two years ago at a coupon rate of 9 percent. The bonds make semiannual payments. If these bonds currently sell for 102 percent of par value, what is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. YMT _____% Grohl Co. issued 8-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these...

Bose Outfitters issued 25-year bonds two years ago at a coupon rate of 7.80 percent. If...

Bose Outfitters issued 25-year bonds two years ago at a coupon rate of 7.80 percent. If these bonds currently sell for $848, what is the YTM?

Dexter Mills issued a 25-year bonds two years ago at a coupon rate of 10.2 percent....

Dexter Mills issued a 25-year bonds two years ago at a coupon rate of 10.2 percent. The bonds make semiannual payments. The yield-to-maturity on these bonds is 9.2 percent. What is the current bond price? I got $5316.51, but I am unsure of my answer so would like confirmation + see the work to get the answer. Thanks!

Ngata Corp. issued 12-year bonds 2 years ago at a coupon rate of 8.4%.The bonds...

Ngata Corp. issued 12-year bonds 2 years ago at a coupon rate of 8.4%. The bonds make semiannual payments. If these bonds currently sell for 105% of par value, what is the YTM?

Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent....

Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM? Settlement Date= 1/1/2000 Maturity Date= 1/1/2018 Annual Coupon Rate =7.10% Coupon per Year=2 Face Value(%of Par)=100 Bond Price (%of Par)=105 Calculate Yield to Maturity in Excel using above Information

Bond Yields?Skolits Corp. issued 15-year bonds two years ago at a coupon rate of 5.1 percent....

Bond Yields?Skolits Corp. issued 15-year bonds two years ago at a coupon rate of 5.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM? ( I need the following info) Settlement Maturity Rate Pr Redemption Frequency Basis: YTM

West Corp. issued 14-year bonds 2 years ago at a coupon rate of 9.8 percent. The...

West Corp. issued 14-year bonds 2 years ago at a coupon rate of 9.8 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM?

Clapper Corp. issued 12-year bonds 2 years ago at a coupon rate of 7.8 percent. The...

Clapper Corp. issued 12-year bonds 2 years ago at a coupon rate of 7.8 percent. The bonds make semiannual payments. If these bonds currently sell for 108 percent of par value, what is the YTM? Par Value = $1,000 Using Method One: the equation Bond price = par value * (1+r)^-n + coupon * (1 - (1+r)^-n)/r Please show all work

West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The...

West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM?

Subjects