Question
In: Finance
A bond was issued three years ago at a price of $950 with a maturity of...
A bond was issued three years ago at a price of $950 with a maturity of six years, a yield-to-maturity (YTM) of 6.75% compounded semi-annually, and a face value of $1,000 with semi-annualy coupons. What is the price of this bond today immediately after the receipt of today's coupon if the YTM has fallen to 5.50% compounded semi-annually?
|
$905 |
|
|
$931 |
|
|
$956 |
|
|
$981 |
|
|
$1,006 |
Solutions
jeff jeffy answered 2 years agoRelated Solutions
A bond was issued three years ago at a price of $942 with a maturity of...
A bond was issued three years ago at a price of $942 with a
maturity of six years, a yield-to-maturity (YTM) of 5.75%
compounded semi-annually, and a face value of $1,000 with
semi-annualy coupons. What is the price of this bond today
immediately after the receipt of today's coupon if the YTM has
fallen to 4.50% compounded semi-annually?
A bond was issued three years ago at a price of $954 with a maturity of...
A bond was issued three years ago at a price of $954 with a
maturity of six years, a yield-to-maturity (YTM) of 7.25%
compounded semi-annually, and a face value of $1,000 with
semi-annualy coupons. What is the price of this bond today
immediately after the receipt of today's coupon if the YTM has
fallen to 6.00% compounded semi-annually?
A bond was issued 3 years ago at a price of $1,040 with a maturity of...
A
bond was issued 3 years ago at a price of $1,040 with a maturity of
6 years, a yield-to-maturity (YTM) of 5.25% compounded
semi-annually, and a face value of $1,000 with semi-annualy
coupons. What is the price of this bond today immediately after the
receipt of today's coupon if the YTM has risen to 6.50% compounded
semi-annually?
Three years ago, you bought a 12% bond that had 7 years to maturity and a...
Three years ago, you bought a 12% bond that had 7 years to
maturity and a yield to maturity of 12%. Today (after the sixth
interest payment), you sold the bond when it is yielding 13%. What
is your annual rate of return for the three year period? All coupon
payments are semi-annual, and the par value is $1,000.
Three years ago, JKL Co. issued bonds with a 18-year maturity then and at a coupon...
Three years ago, JKL Co. issued bonds with a 18-year maturity
then and at a coupon rate of 6.1 percent. The bonds make semiannual
payments. If the YTM on these bonds is 7.5 percent, what is the
current bond price? (Do not include the dollar sign ($). Enter
rounded answer as directed, but do not use the rounded numbers in
intermediate calculations. Round your answer to 2 decimal places
(e.g., 32.16).)
Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity....
Five years ago, Rock Steady Corp issued a semiannual coupon bond
with seven years until maturity. This bond was originally issued at
par with a $1,000 face value. The coupon rate on the bond is 8%.
Today, the yield-to-maturity (YTM) is 10%. Assume an investor
bought the bond at the time it was issued and sold it today. What
is the holding period return for the five year period of
investment?
Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity....
Five years ago, Rock Steady Corp issued a semiannual coupon bond
with seven years until maturity. This bond was originally issued at
par with a $1,000 face value.
The coupon rate on the bond is 8%. Today, the yield-to-maturity
(YTM) is 10%.
What was yield to maturity of this bond when it was issued?
PLEASE give step by step solutions!
8%
9%
8.5%
7.5%
Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity....
Five years ago, Rock Steady Corp issued a semiannual coupon bond
with seven years until maturity. This bond was originally issued at
par with a $1,000 face value. The coupon rate on the bond is 8%.
Today, the yield-to-maturity (YTM) is 10%. What was yield to
maturity of this bond when it was issued? Show calculations.
SJU Corp. issued a 10-year bond at a price of $1,000 two years ago in the...
SJU Corp. issued a 10-year bond at a price of $1,000 two years
ago in the US. The bond pays an annual coupon rate of 8% and the
coupon interest is paid every six months. If the current market
interest rate for this class of bond is 10%,
a. what
is the value of the bond right now?
b. what
was the market interest rate for the bond two year ago? Hint: no
calculation
needed (20 pts)
Tracer Manufacturers issued a 10-year bond six years ago. The bond’s maturity value is $1,000, and...
Tracer Manufacturers issued a 10-year bond six years ago. The
bond’s maturity value is $1,000, and its coupon interest rate is 6
percent. Interest is paid semiannually. The bond matures in four
years. If investors require a return equal to 5 percent to invest
in similar bonds, what is the current market value of Tracer’s
bond? *SET TO 4 DECIMAL PLACES*
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