Question

In: Finance

A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the current...

  1. 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)?

Solutions

Expert Solution

Calculations-

Here,
Fv is the Future value of the bond
rate is the periodic interest rate
nper is no. of periods
pmt is the periodic coupon payments
Pv is the current rate of bond

type = 0 if the amount is paid at the end of the year ,1 if it is paid at the beginning.

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

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)?
A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. How much is...
A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. How much is the par value of this bond? A 10-year corporate bond has a coupon rate of 6% with annual payments. How much in interest does the bondholder receive per year? A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. How much in interest does the bondholder receive per year and per interest payment?
A semi-annual corporate bond has a coupon rate of 9 percent per year. The face value....
A semi-annual corporate bond has a coupon rate of 9 percent per year. The face value. is $1,000. The market interest rate (yield to maturity) for this bond today is 10.5 percent. This bond has 25 years. before maturity. What is the price of this bond today? (5 points). b. What is the current yield for this bond? (3 points) c. Why is the current yield different from the current market rate of this bond? (2 points)
A semi-annual corporate bond has a coupon rate of 9 percent per year. The face value...
A semi-annual corporate bond has a coupon rate of 9 percent per year. The face value is $1,000. The market interest rate (yield to maturity) for this bond today is 10.5 percent. This bond has 25 years before maturity. a. What is the price of this bond today? b. What is the current yield for this bond? c. Why is the current yield different from the current market rate of this bond? PLEASE SHOW HOW YOU WOULD GET ANSWERS ON...
10-year corporate bond has a coupon rate of 6% with semi-annual payments. If interest rates rise...
10-year corporate bond has a coupon rate of 6% with semi-annual payments. If interest rates rise to 7% on similar bonds then what is the value of the bond in the marketplace? A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. If interest rates rise to 5% on similar bonds then what is the value of the bond in the marketplace? A 10-year corporate bond has a coupon rate of 6% with annual payments. If the...
GE has a 7-year, 4.5% coupon bond with semi-annual coupon payments. The current YTM is 3.5%....
GE has a 7-year, 4.5% coupon bond with semi-annual coupon payments. The current YTM is 3.5%. What is duration of this bond and how much will price change if YTM goes up by 1% using duration approximation method?
Coupon rate for a $1000 corporate bond is 9%. This bond is paying coupon semi-annually and...
Coupon rate for a $1000 corporate bond is 9%. This bond is paying coupon semi-annually and will mature in 9 years. If the current market yield for this bond is 8%, what would be the value of this bond?
Bally's Corporate Bond pays a semi-annual coupon at 8% coupon rate. If this bond has 15...
Bally's Corporate Bond pays a semi-annual coupon at 8% coupon rate. If this bond has 15 years until maturity and the market rate of interest (rd) is 6% what is the value of this bond. Group of answer choices $ 827.08 $1,000.00 $ 724.70 $1,196.00 $ 587.06
A 27-year maturity bond making annual coupon payments with a coupon rate of 9% has duration...
A 27-year maturity bond making annual coupon payments with a coupon rate of 9% has duration of 11.5 years and convexity of 191.2. The bond currently sells at a yield to maturity of 8%. Required: (a) Find the price of the bond if its yield to maturity falls to 7% or rises to 9%. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)   Yield to maturity of 7% $      Yield to maturity of 9% $   ...
1) A 10-year corporate bond has a coupon rate of 6% with annual payments. If interest...
1) A 10-year corporate bond has a coupon rate of 6% with annual payments. If interest rates rise to 8% on similar bonds, then what is the value of the bond in the marketplace? 2) A 10-year corporate bond has a coupon rate of 6% with quarterly payments. If interest rates rise to 8% on similar bonds, then what is the value of the bond in the marketplace? 3) A 100-year corporate bond has a coupon rate of 6% with...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT