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.)

Solutions

Expert Solution

Given,

Years to maturity = 10 years

Coupon rate = 6%

Price = $980

Face value = $1000 (assumed)

Solution :-

Annual coupon payment = $1000 x 6% = $60

So, we have

PMT = 60

NPER = 10

PV = -980

FV = 1000

So,

YTM = 6.275%

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

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?

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?

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

What is the YTM on a 10%, 20-year simi-annual coupon bond that that currently trades for $600?

1 Calculate the Yield to Maturity (YTM) of a 10-year annual coupon-ed bond with a coupon...

1 Calculate the Yield to Maturity (YTM) of a 10-year annual coupon-ed bond with a coupon rate of 7%, a price of $1050, and a face value of $1000. 2 a Calculate the Yield to Maturity (YTM) of a 10-year semiannual coupon-ed bond with a coupon rate of 7%, a price of $1050, and a face value of $1000. b Calculate this bond's Current Yield (CY). 3 In previous Questions 4 and 5, with all the same maturity, coupon...

Consider a 10-year 6 percent coupon bond. What is the price of this bond if the...

Consider a 10-year 6 percent coupon bond. What is the price of this bond if the market yield is 6%? What is the price of this bond if the market yield is 7%? What is the price of this bond if the market yield is 5%?

A 20 year bond pays an annual coupon of 6%. The current YTM is 8% 1)...

A 20 year bond pays an annual coupon of 6%. The current YTM is 8% 1) What is the duration of this bond? (Use the excel file for Chapter 11 to help you figure out the answer) 2) If YTM decreases to 7.8%, what is the change to bond price according to the duration formula? What is the change to bond price predicted by bond value formula? Thank you for answering the question!!!!!

A bond with a 10% annual coupon matures in 6 years. The bond has a price...

A bond with a 10% annual coupon matures in 6 years. The bond has a price of $1,200. What is the yield to maturity for this bond? Question 3 options: 2.99% 5.94% 5.98% 7.42%

You have the following bond : 5-year 6% coupon with annual interest payments YTM IS 6%...

You have the following bond : 5-year 6% coupon with annual interest payments YTM IS 6% A. Calculate price and duration of this bond B. Calculate new price if YTM instantly inceases to 8% C. Calculate new duration based on part B. D. What can you conclude about relationship between market interest rates and Duration

Consider a 5- year bond with a semi-annual 10% coupon and a yield to maturity(ytm) of...

Consider a 5- year bond with a semi-annual 10% coupon and a yield to maturity(ytm) of 9.00%. what is the duration of this bond in years?

Subjects