James Bank has purchased a bond that has a coupon rate of 7.25% and a face...

James Bank has purchased a bond that has a coupon rate of 7.25% and a face value of $1,000. It has 4 years to maturity and is currently selling in the market for $1,085. The bond makes annual coupon payments. What is the duration of this bond? Please show your work

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jeff jeffy answered 2 years ago

James Bank has purchased a bank-qualified municipal bond with a coupon rate of 4.5%. The bank...

James Bank has purchased a bank-qualified municipal bond with a coupon rate of 4.5%. The bank has had to borrow funds to make this purchase at a cost of 3.15%. The bank is in the 25% tax bracket. What is the net after-tax return on this bank-qualified municipal bond? Please show your work

James buys a newly issued, $1,000 face value, 10-year maturity bond with a coupon rate of...

James buys a newly issued, $1,000 face value, 10-year maturity bond with a coupon rate of 12% (coupons are semi-annual) at $1,000. What is the current yield to maturity (YTM, nominal and semi-annually compounded) of this bond? A. 13.42% B. 10% C. 8% D. 12%

Consider a coupon bond that has a face value of $1,000, a coupon rate of 4%,...

Consider a coupon bond that has a face value of $1,000, a coupon rate of 4%, and five years to maturity. What is the price of the bond if the yield to maturity on similar bonds is 6%? What should its price be the following year if the yield to maturity on similar bonds falls to 5%? Would this change in yields be a good thing or not if you purchased the bond one year earlier at the price you...

An Apple annual coupon bond has a coupon rate of 4.1%, face value of $1,000, and...

An Apple annual coupon bond has a coupon rate of 4.1%, face value of $1,000, and 4 years to maturity. If its yield to maturity is 4.1%, what is its Modified Duration? Answer in years, rounded to three decimal places.

An Apple annual coupon bond has a coupon rate of 6.9%, face value of $1,000, and...

An Apple annual coupon bond has a coupon rate of 6.9%, face value of $1,000, and 4 years to maturity. If its yield to maturity is 6.9%, what is its Modified Duration? Answer in years, rounded to three decimal places.

A bond has years to maturity, a coupon rate of 6.7% , and a face value...

A bond has years to maturity, a coupon rate of 6.7% , and a face value of $1000. The yield to maturity is 14%. Assume annual compounding. What is the current price of the bond, the coupon yield, and the capital gain yield? Also, what will be the price of the bond when it has 4 years to maturity (one year from today) and what is the percentage increase/decrease in price during the year? (Note: use negative signs to indicate...

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The...

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $950. If the corporation sells more bonds it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital? please show all steps in the calculation.

Bond A has a face value of $5,000, a coupon rate of 2%, and a maturity...

Bond A has a face value of $5,000, a coupon rate of 2%, and a maturity date of five years. Bond B has a face value of $4,000, a coupon rate of 10%, and a maturity date of 10 years. Bond C has a face value of $4,500, a coupon rate of 3%, and a maturity date of four years. If these bonds are being sold for $6,300 each, which should you buy? Assume that the prevailing interest rate is...

A bond has a face value of $1,000, a coupon rate of 8%, and a yield...

A bond has a face value of $1,000, a coupon rate of 8%, and a yield to maturity of 9.5%. If the bond matures in 8 years, what is the price of the bond? (Assume coupons are paid annually.)

A bond has a face value of $1000 and the coupon rate is 6%. Coupons are...

A bond has a face value of $1000 and the coupon rate is 6%. Coupons are paid semiannually. The bond matures in six years. The market interest rate is 7%. What is the present value of this bond? And Suppose the price of the bond equals to the present value of the bond. What is the current yield of this bond?

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