The Brownstone Corporation's bonds have 4 years remaining to maturity. Interest is paid annually, the bonds...

The Brownstone Corporation's bonds have 4 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%.

What is the yield to maturity at a current market price of $880? Round your answer to two decimal places.
%
What is the yield to maturity at a current market price of $1,129? Round your answer to two decimal places.
%

Expert Solution

	When market price is 880
1-	YTM on bond = Using rate function in MS excel	rate(nper,pmt,pv,fv,type) nper = 4 pmt =1000*10%=100 pv = 880 fv =1000 type =0	RATE(4,-100,880,-1000,0)	14.13%

	When the bond price is 1129
2-	YTM on bond = Using rate function in MS excel	rate(nper,pmt,pv,fv,type) nper = 4 pmt =1000*10%=100 pv = 1129 fv =1000 type =0	RATE(4,-100,1129,-1000,0)	6.26%

jeff jeffy answered 2 years ago

1. The Brownstone Corporation's bonds have 4 years remaining to maturity. Interest is paid annually, the...

1. The Brownstone Corporation's bonds have 4 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. a. What is the yield to maturity at a current market price of $831? Round your answer to two decimal places. b What is the yield to maturity at a current market price of $1,048? Round your answer to two decimal places. 2.Suppose Hillard Manufacturing sold an issue of bonds with...

The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. What is the yield to maturity at a current market price of $828? Round your answer to two decimal places. % What is the yield to maturity at a current market price of $1,100? Round your answer to two decimal places. % Would you pay $828 for one of these bonds if...

The Brownstone Corporations bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

The Brownstone Corporations bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. a) What is the yield to maturity at a current market price of $849? $ b) What is the yield to maturity at a current market price of $1,146? $ c) Would you pay $849 for one of these bonds if you thought that the appropriate rate of YTM was 12%? Explain.

Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have...

Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10.5%. The bonds have a yield to maturity of 11%. What is the current market price of these bonds? Round your answer to the nearest cent.

1, Jackson Corporation's bonds have 15 years remaining to maturity. Interest is paid annually, the bonds...

1, Jackson Corporation's bonds have 15 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 7%. The bonds have a yield to maturity of 8%. What is the current market price of these bonds? Do not round intermediate calculations. Round your answer to the nearest cent. 2, bonds will mature in 12 years. The bonds have a face value of $1,000 and an 11.5% coupon rate, paid semiannually. The...

1. Jackson Corporation's bonds have 9 years remaining to maturity. Interest is paid annually, the bonds...

1. Jackson Corporation's bonds have 9 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. The bonds have a yield to maturity of 10%. What is the current market price of these bonds? Do not round intermediate calculations. Round your answer to the nearest cent. 2. Wilson Corporation’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and...

1. Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

1. Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 11%. The bonds have a yield to maturity of 12%. What is the current market price of these bonds? Round your answer to the nearest cent. 2. Wilson Wonders' bonds have 15 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is...

Bonomo Corporation’s bonds have 4 years remaining to maturity. Interest is paid annually in arrears. The...

Bonomo Corporation’s bonds have 4 years remaining to maturity. Interest is paid annually in arrears. The bonds have a par value of $1,000, and a coupon interest rate of 4.5%. (a) What is the bonds’ yield-to-maturity at a current price of $916? (b) What is the bonds’ yield-to-maturity at a current price of $1022? (c) Would you pay $916 for one of Bonomo’s bonds if you thought that the appropriate rate of interest (i.e., your expected rate of return) was...

Yield to Maturity and Required Returns The Brownstone Corporation's bonds have 5 years remaining to maturity....

Yield to Maturity and Required Returns The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. What is the yield to maturity at a current market price of $799? Round your answer to two decimal places. % What is the yield to maturity at a current market price of $1,067? Round your answer to two decimal places.

Yield to Maturity and Required Returns The Brownstone Corporation's bonds have 6 years remaining to maturity....

Yield to Maturity and Required Returns The Brownstone Corporation's bonds have 6 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. What is the yield to maturity at a current market price of $835? Round your answer to two decimal places. ---------------% What is the yield to maturity at a current market price of $1,122? Round your answer to two decimal places. ---------------% Would you pay $835...

Question