1) A 10-year coupon bond with coupon rate 12% and semi-annual
payment. The required return is 10%. What is the current value of
such bond?
2) Firm ABC paid an annual dividend of $2.00 per share last
year. Management just announced that future dividends will increase
by 2 percent annually. What is the amount of the expected dividend
in year 5?
A 20 yr maturity bond with par value of $1000 makes semi-annual
coupon payment at a coupon rate of 8%. What is the effective annual
yield if the bond price is $950?
The answer is 8.7%
Please show work, USING THE BA CALCULATOR. Thank you.
Calculate the annual coupon payment if the semi-annual coupon
paying bond price is $1,084, the yield for the bond is 9%, the
bond's face value is $1,000 and matures in 13 years.
A 20-year semi-annual bond has just been issued with its coupon
rate set at the current market yield of 6 percent. How much would
the price of the bond change (in percentage terms) if the market
yield suddenly fell by 50 basis points? How much would the price
change if the yield rose by 50 basis points?
A 20-year semi-annual bond has just been issued with its coupon
rate set at the current market yield of 6 percent. How much would
the price of the bond change (in percentage terms) if the market
yield suddenly fell by 50 basis points? How much would the price
change if the yield rose by 50 basis points?
A 20-year semi-annual bond has just been issued with its coupon
rate set at the current market yield of 6 percent. How much would
the price of the bond change (in percentage terms) if the market
yield suddenly fell by 50 basis points? How much would the price
change if the yield rose by 50 basis points?
Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par
value bond. The bond currently sells for $1,318. What’s the bond’s
current yield, and capital gain yield? 6.07%, 0.71% 6.07%, -0.71%
8%, 1.43% 8%, -1.43%
last year you purchased a 10 year semi-annual coupon bond with
coupon rate of 12% and face value of $1000. the bonds yield to
maturity was 11% then. a year past and the market interest rate
increases by 1 percentage point. your one-year holding period
return is____% (rounded with two decimal places)