Question

In: Finance

a 2-year semi-annual bond with an annual coupon rate of 4.8% sells for 97% of its...

a 2-year semi-annual bond with an annual coupon rate of 4.8% sells for 97% of its face value. What is the bond's Current Yield?

4.95%

6.03%

None of the above

4.80%

3.21%

Solutions

Expert Solution


Related Solutions

last year you purchased a 10 year semi-annual coupon bond with coupon rate of 12% and...
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...
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...
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...
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...
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...
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 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...
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...
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...
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?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT