In: Finance
Oak Bay Software has 10.6% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 108.2% of par.
What is the YTM? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
YTM %
What is the effective annual yield? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Effective annual yield %
Bond J is a 4.7% coupon bond. Bond K is a 10.7% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and have a YTM of 7.7%. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round the final answers to 2 decimal places.)
If interest rates suddenly rise by 2%, what is the percentage price change of these bonds?
Percentage change in price of Bond J | % |
Percentage change in price of Bond K | % |
What if rates suddenly fall by 2% instead?
Percentage change in price of Bond J | % |
Percentage change in price of Bond K | % |
Colwood Corp. has 8.9% coupon bonds making annual payments with a YTM of 8.1%, current market value of $1,060.10.
How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Years left to maturity years