last year you purchased a 10 year semi-annual coupon bond with
coupon rate of 12% and face value of $1000. the bonds yield to
maturity was 11% then. a year past and the market interest rate
increases by 1 percentage point. your one-year holding period
return is____% (rounded with two decimal places)
A 20-year semi-annual bond has just been issued with its coupon
rate set at the current market yield of 6 percent. How much would
the price of the bond change (in percentage terms) if the market
yield suddenly fell by 50 basis points? How much would the price
change if the yield rose by 50 basis points?
A 20-year semi-annual bond has just been issued with its coupon
rate set at the current market yield of 6 percent. How much would
the price of the bond change (in percentage terms) if the market
yield suddenly fell by 50 basis points? How much would the price
change if the yield rose by 50 basis points?
A 20-year semi-annual bond has just been issued with its coupon
rate set at the current market yield of 6 percent. How much would
the price of the bond change (in percentage terms) if the market
yield suddenly fell by 50 basis points? How much would the price
change if the yield rose by 50 basis points?
Jack is planning to buy a 9-year bond with semi-annual coupons
and a coupon rate of 6.9 percent p.a. The face value is $1,000.
Given an annual yield of 5.4 percent, what is the bond’s current
price? (to the nearest cent)?
1) A 10-year coupon bond with coupon rate 12% and semi-annual
payment. The required return is 10%. What is the current value of
such bond?
2) Firm ABC paid an annual dividend of $2.00 per share last
year. Management just announced that future dividends will increase
by 2 percent annually. What is the amount of the expected dividend
in year 5?
Bond A: 10-year annual bond, price $1010, coupon rate 6% par
$1000 bond B: 10-year semi-annual bond, price $1010, coupon rate
6%, par $1000 Does bond A has a higher cost of debt than bond
B?
A 3-year, semi-annual bond has an 8% coupon rate and a face
value of $1,000. If the yield to maturity on the bond is 10%, what
is the price of the bond?
A 100-year corporate bond has a coupon rate of
9% with semi-annual payments. If the current value
of the bond in the marketplace is $400, then what is the
Yield-to-Maturity (YTM)?
Suppose a ten-year, $1000 bond with an 8.7% coupon rate and
semi-annual coupons is trading for a price of $1 034.59.
a. What is the bond's yield to maturity (expressed as an APR
with semi-annual compounding)?
b. If the bond's yield to maturity changes to 9.3% APR, what
will the bond's price be?