What is the YTM of a Home Depot bond that has a 3.5% coupon, 10 years...

What is the YTM of a Home Depot bond that has a 3.5% coupon, 10 years to maturity, is priced at $981.50 and pays interest annually.

please show steps in excel

Solutions

Expert Solution

Calculations-

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

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

1. A bond has a $1,000 par value, 4% coupon paid annually, 3.5% YTM, 15 years...

1. A bond has a $1,000 par value, 4% coupon paid annually, 3.5% YTM, 15 years to maturity, and a modified duration of 7.4. Use the interest rate risk estimation formula to estimate interest rate risk for this bond in response to a 50 basis point decrease in its yield to maturity. 2. A bond has a $1,000 par value, 6% coupon paid annually, 6.25% YTM, 12 years to maturity, and a modified duration of 5. Estimate the price change...

A bond has $1,000 face value, coupon rate of 3.5%, and yield to maturity (YTM) of...

A bond has $1,000 face value, coupon rate of 3.5%, and yield to maturity (YTM) of 3.7%. It will mature in 17 years and coupons are paid annually. What is this bond’s current yield?

GE has a 7-year, 4.5% coupon bond with semi-annual coupon payments. The current YTM is 3.5%....

GE has a 7-year, 4.5% coupon bond with semi-annual coupon payments. The current YTM is 3.5%. What is duration of this bond and how much will price change if YTM goes up by 1% using duration approximation method?

The YTM of 1,000 bond with a 10% coupon rate, semiannual coupons, and two years to...

The YTM of 1,000 bond with a 10% coupon rate, semiannual coupons, and two years to maturity is 6.5 APR, compounded semiannually. b.Suppose the market price of this bond curretly is $980. Is there an arbitrage opportunity ? Answer : Yes / No c. Is this bond undervalued or overvalued by the market ? Answer : I don't know / Undervalued / Overvalued d. Should you long or short this bond ? Answer : Long / Short / Do nothing...

What is the YTM of a 10 year, 6% annual coupon bond with a price of...

What is the YTM of a 10 year, 6% annual coupon bond with a price of $980? (Please answer as a percentage with no percent sign, showing 4 significant digits.)

a) Consider Bond C – a 4% coupon bond that has 10 years to maturity. It makes semi-annual payments and has a YTM of 7%

a) Consider Bond C – a 4% coupon bond that has 10 years to maturity. It makes semi-annual payments and has a YTM of 7%. If interest rates suddenly drop by 2%, what is the percentage change of the bond? What does this problem tell you about the relationship between interest rate and bond price? b) Consider another bond – Bond D, which is a 10% coupon bond. Similar to Bond C, it has 10 years to maturity. It...

Consider a 10% annual coupon bond with three years of remaining maturity and a current YTM...

Consider a 10% annual coupon bond with three years of remaining maturity and a current YTM of 12%. Calculate the duration and convex it’s of this bond. If rates are expected to decline 2 percentage points use the convexity approximation to estimate the percentage change be in price for the bond.

8. What is the YTM of a $1,000 par value bond with a 10% 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...

What is the YTM of a 10 year, 8% semi-annual coupon bond with a price of...

What is the YTM of a 10 year, 8% semi-annual coupon bond with a price of $1220?

What is the YTM on a 10%, 20-year simi-annual coupon bond that that currently trades for...

What is the YTM on a 10%, 20-year simi-annual coupon bond that that currently trades for $1,013?

Subjects