Question
In: Finance
A 10-year, 12 % semiannual coupon bond with a par value of $1,000 may be called...
A 10-year, 12 % semiannual coupon bond with a par value of $1,000 may be called in 5 years, at a call price of $1,060. The bond sells for $1,300. (Assume the bond has just been issued).
a. What is the bond’s yields to maturity?
b. What is the bond’s current yield?
c. What is the bond’s capital gain or loss yield in the first year?
d. What is the bond’s yield to call?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in...
A
20-year, 8% semiannual coupon bond with a par value of $1,000 may
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Basic Input Data:
Years to maturity:
20
Periods per year:
2
Periods to maturity:
40
Coupon rate:
8%
Par value:
$1,000
Periodic payment:
$40
Current price
$1,100
Call price:
$1,040
Years till callable:
5
Periods till callable:
10
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1 What is the bond's yield to maturity? Round your
answer to two decimal places
2What is the bond's current yield? Round your answer
to two decimal places
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A 15-year, 14% semiannual coupon bond with a par value of $1,000
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called after 5 years for a price of $1,050.
a. What is the bond's nominal yield to call (YTC)?
b. If you bought this bond, do you think you would be more
likely to earn the YTM or the YTC? Why
Assuming semiannual compounding, a 10-year zero coupon bond with a par value of $1,000 and a...
Assuming semiannual compounding, a 10-year zero coupon bond with
a par value of $1,000 and a required return of 11.8% would be
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$317.75
$327.78
$894.45
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A 15-year, $1,000 par value, 10% semiannual coupon bond has a price of $1,190 and it...
A 15-year, $1,000 par value, 10% semiannual coupon bond has a
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b.
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A 15-year, $1,000 par value, 10% semiannual coupon bond has a price of $1,190 and it...
A 15-year, $1,000 par value, 10% semiannual coupon bond has a
price of $1,190 and it is callable in 5 years at a call price of
$1,050. What is the bond’s nominal yield to call (YTC)?
a.
6.37%
b.
6.73%
c.
7.60%
d.
7.83%
e.
3.18%
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 12% semiannual
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What is the bond's nominal yield to maturity? Do not round
intermediate calculations. Round your answer to two decimal
places.
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What is the bond's nominal yield to call? Do not round intermediate
calculations. Round your answer to two decimal places.
%
Would an...
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 12% semiannual
coupon bond at its par value of $1,000. Currently, the bond can be
called in 6 years at a price of $1,060 and it sells for $1,300.
What is the bond's nominal yield to maturity? Do not round
intermediate calculations. Round your answer to two decimal
places.
%
What is the bond's nominal yield to call? Do not round intermediate
calculations. Round your answer to two decimal places.
%
Would an...
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 12% semiannual
coupon bond at its par value of $1,000. Currently, the bond can be
called in 6 years at a price of $1,060 and it sells for $1,300.
What is the bond's nominal yield to maturity? Do not round
intermediate calculations. Round your answer to two decimal
places.
%
What is the bond's nominal yield to call? Do not round intermediate
calculations. Round your answer to two decimal places.
%
Would an...
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