Question
In: Finance
A bond matures in 15 years and pays an 8 percent annual coupon. The bond has...
A bond matures in 15 years and pays an 8 percent annual coupon. The bond has a face value of $1,000 and currently sells for $985. What is the bond’s current yield and yield to maturity?
The face value for WICB Limited bonds is $250,000 and has a 6 percent annual coupon. The 6 percent annual coupon bonds matures in 2035, and it is now 2020. Interest on these bonds is paid annually on December 31 of each year, and new annual coupon bonds with similar risk and maturity are currently yielding 10 percent. How much should Karen sell her bonds today?
What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 119% with coupons rate of 10%? Assume the par value of the bond is $1,000.
Solutions
Expert Solution
1.
current yield
=annual coupon/current market price of the bond
=(1000*8%)/985
=8.12%
yield to maturity based on excel=RATE(nper,pmt,pv,fv)=RATE(15,1000*8%,-985,1000)=8.18%
we can do only first question based on Chegg guidelines
jeff jeffy answered 2 years agoRelated Solutions
A bond matures in 15 years and pays an 8 percent annual coupon. The bond has...
A bond matures in 15 years and pays an 8 percent annual coupon.
The bond has a face value of $1,000 and currently sells for $985.
What is the bond’s current yield and yield to maturity?
A bond matures in 15 years and pays an 8 percent annual coupon. The bond has...
A bond matures in 15 years and pays an 8 percent annual coupon.
The bond has a face value of $1,000 and currently sells for $985.
What is the bond’s current yield and yield to maturity? $
A bond matures in 20 years and pays an 8 percent annual coupon. The bond has...
A bond matures in 20 years and pays an 8 percent annual coupon.
The bond has a face value of $1000 and currently sells for $900.
What is the bond's current yield and yield to maturity?
9. A bond matures in 12 years and pays a 6 percent annual coupon. The bond...
9. A bond matures in 12 years and pays a 6 percent annual
coupon. The bond has a face value of $1,000 and currently sells for
$890. What is the bond’s current yield and yield to maturity?
10. The face value for Karen’s Limited bonds is $100,000 and has
a 2 percent annual coupon. The 2 percent annual coupon bonds
matures in 2022, and it is now 2012. Interest on these bonds is
paid annually on December 31 of each...
A corporate bond matures in 14 years. The bond has an 8 percent coupon and a...
A corporate bond matures in 14 years. The bond has an 8 percent
coupon and a par value of $1,000. Interest is paid semiannually.
The bond is priced to yeild 6.0%. What is the bond's current price?
Hint: Should it be above or below the face value?
Group of answer choices
$987.52
$1,006.57
$1,187.64
$1,199.35
$1,212.24
Consider a bond with a coupon rate of 8 percent that pays semiannual coupon and matures...
Consider a bond with a coupon rate of 8 percent that pays
semiannual coupon and matures in eight years. The market rate of
return on bonds of this risk is currently 10 percent. What is the
current value of a $1,000 face value bond?
$891.62
$830.58
$854.08
$843.07
A corporate bond matures in 17 years, pays an annual coupon rate of 5%, has a...
A corporate bond matures in 17 years, pays an annual coupon rate
of 5%, has a par value of $1,000 and a required rate of return of
5.90%. a. What is the current market value of this bond? b. In one
year, would you expect the bond price to increase or decrease from
its current market value?
A corporate bond matures in 17 years, pays an annual coupon rate of 5%, has a...
A corporate bond matures in 17 years, pays an annual coupon rate
of 5%, has a par value of $1,000 and a required rate of return of
5.90%. a. What is the current market value of this bond? b. In one
year, would you expect the bond price to increase or decrease from
its current market value?
Please don't use excel. explain normally. Thank you!
Problem A, A bond matures in 26 years, has an annual coupon rate of 8% on...
Problem A,
A bond matures in 26 years, has an annual coupon rate of 8% on a
face of $1000, yields an annual rate of 10%, and its first
annual coupon will be paid a year from now. The
following information applies to the above bond:
YTM $-Price
10.2% 801.5761
10.0% (presently) P0 =
816.7811
9.8% 832.4845
At the present price (P=816.7811), the annualized Modified
Duration is
a. 19.02
b. 19.98
c. 9.46
d. 9.51
At the present price (P0), the measure of...
Bally's Corporate Bond pays a semi-annual coupon at 8% coupon rate. If this bond has 15...
Bally's Corporate Bond pays a semi-annual coupon at 8% coupon
rate. If this bond has 15 years until maturity and the market rate
of interest (rd) is 6% what is the value of this bond.
Group of answer choices
$ 827.08
$1,000.00
$ 724.70
$1,196.00
$ 587.06
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