Question

In: Finance

A $1,000 bond with annual coupon payments at 9% of par has an expected return of...

A $1,000 bond with annual coupon payments at 9% of par has an expected return of 11% over the life of the bond, compute the value of the bond at these times to maturity 12, 8, 5, 2 years ( and how do i enter this information into an online bond yield to maturity calculator)

Solutions

Expert Solution


Related Solutions

A 10-year, 10% coupon bond, semi-annual payments, $1,000 Par, is expected to make all coupon payments...
A 10-year, 10% coupon bond, semi-annual payments, $1,000 Par, is expected to make all coupon payments but to pay only 50% of par value at maturity. What is the expected yield on this bond if the bond is purchased for $975? a. 10.00% b. 6.77% c. None of the options are correct. d. 11.68% e. 6.68%
A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon...
A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110. What is its yield to maturity (YTM)? Round your answer to two decimal places.     % Assume that the yield to maturity remains constant for the next 2 years. What will the price be 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $   
A $1,000 par value bond has a 9% annual coupon and matures in 5.50 years. If...
A $1,000 par value bond has a 9% annual coupon and matures in 5.50 years. If the current market interest rate on bonds of this type is 7% p.a., calculate this bond’s invoice price, accrued interest, and clean price.
A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon...
A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.) Bond prices: 950, 1000, 1050 What are the Bond Equivalent Annual Yield to Maturity and  Effective Annual Yield to Maturity
A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a...
A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a yield to maturity of 5.25 percent. The bond matures in 9 years. What is the price of the bond, What will happen to the price if market interest rates rise to 6.45 percent, what can you say about the relationship between the price of a bond and the market interest rate?
1.A three-year bond with par-value $1,000 making annual coupon payments of $106 is priced at $1,000....
1.A three-year bond with par-value $1,000 making annual coupon payments of $106 is priced at $1,000. At the end of the first year, the interest rate turns out to be 8.6%. The investor re-invest the bond's coupon payments at 8.6%, What is the investor's, realized compound yield to maturity? 2.An investment pays out $180 at the end of each December for 3 years. An investor wants to buy the investment at the end of April, before the next $180 payment....
Bond XYZ is a 4-year, 8% annual coupon bond, with $1,000 par value. The required return...
Bond XYZ is a 4-year, 8% annual coupon bond, with $1,000 par value. The required return on the bond is 5.4%. 1)What is the duration, 2) What is the modified duration of this bond?
A two-year bond with par value $1,000 making annual coupon payments of $102 is priced at...
A two-year bond with par value $1,000 making annual coupon payments of $102 is priced at $1,000. . What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity             % b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.2%, (b) 10.2%, (c) 12.2%?(Do not round intermediate calculations.Round your answers to 2 decimal places.) Interest Rate Realized YTM 8.2...
A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon...
A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon payments made on July 1 and January 1. If the bond changes hands on November 1, which of the following is true with respect to accrued interest? The buyer will pay the seller $20 of accrued interest The seller will pay the buyer $20 of accrued interest The buyer will pay the seller $10 of accrued interest The seller will pay the buyer $10...
A zero-coupon bond has a yield to maturity of 9% and a par value of $1,000....
A zero-coupon bond has a yield to maturity of 9% and a par value of $1,000. By convention, zero bonds are assumed to pay $0 semi-annually. If the bond matures in eight years, the bond should sell for a price of _______ today.v.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT