11-What is the approximate yield to maturity for the following bonds? Assume these are bonds issued...

11-What is the approximate yield to maturity for the following bonds? Assume these are bonds issued in the United States.

a.5 years to maturity, 6 percent coupon rate, current price is $950.

b.10 years to maturity, 0 percent coupon rate, current price is $339.

c.15 years to maturity, 8.5 percent coupon rate, current price is $1030.

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago

A bond trader purchased each of the following bonds at a yield to maturity of 11%....

A bond trader purchased each of the following bonds at a yield to maturity of 11%. Immediately after she purchased the bonds, interest rates fell to 9%. What is the percentage change in the price of each bond after the decline in interest rates? Fill in the following table: Price @ 11% Price @ 9% Percentage Change 10-year, 10% annual coupon 10-year zero 5-year zero 30-year zero Perpetuity, $100 annual coupon

Unilever has issued bonds that pay annually with the following characteristics: Coupon Yield to Maturity Maturity...

Unilever has issued bonds that pay annually with the following characteristics: Coupon Yield to Maturity Maturity Macaulay Duration 3% 3% 30 years 27.92 years Calculate modified duration using the information above. Explain why modified duration is a better measure than maturity when calculating the bond's sensitivity to changes in interest rates. Identify the direction of change in modified duration if: The coupon of the bond were 2%, not 3%. The maturity of the bond were 7 years, not 30 years.

Yield to maturity. What is the yield of each of the followingbonds,, if interest (coupon)...

Yield to maturity. What is the yield of each of the following bonds,, if interest (coupon) is paid semiannually?a. What is the yield of the following bond if interest (coupon) is paid semiannually?(Round to two decimal places.)Par ValueCoupon RateYears to MaturityYield to MaturityPrice$5,000.0011%30?$6,030.00$5,000.008%5?$5,000.00$1,000.0012%5?$1,200.00$1,000.006%20?$590.00

Yield to maturity. What is the yield of each of the following bonds, if interest (coupon)...

Yield to maturity. What is the yield of each of the following bonds, if interest (coupon) is paid annually? a. What is the yield of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Data Table Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000.00 10% 30 ? $900.00 $5,000.00 6% 10 ? $5,300.00 $5,000.00 8% 10 ? $5,730.00 $1,000.00 7% 5 ? $800.00

Yield to maturity. What is the yield of each of the following bonds if interest (coupon)...

Yield to maturity. What is the yield of each of the following bonds if interest (coupon) is paid semiannually? (Round to two decimal places.) Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000.00 12% 15 ?______ $1,000.00 $5,000.00 11% 10 ?______ $6,010.00 $5,000.00 8% 25 ?______ $7,120.00 $1,000.00 7% 30 ?______ $700.00

1. What is the yield to maturity on the following bonds; all have a maturity of...

1. What is the yield to maturity on the following bonds; all have a maturity of 10 years, a face value of 2000, and a coupon rate of 4 percent (paid semiannually). The bond's current prices are: a. $1,180 b. $ 2,400 c. Explain the relationship between yield to maturity and bond prices.

A 10-year zero coupon bonds was issued with a yield to maturity of 5% You are...

A 10-year zero coupon bonds was issued with a yield to maturity of 5% You are an investor with a one-year holding period with an ordinary income tax of 40% and capital gain tax of 20%. Assume in one year the interest rate remains the same. Determine: The current price of the bond The price of the bond at the end of the year The after tax holding period return

Baby doll Inc., issued bonds at face value at a yield to maturity of 8 percent....

Baby doll Inc., issued bonds at face value at a yield to maturity of 8 percent. Now, with 8 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased to 14 percent. What has happened to the price of the bond? b. Suppose that investors believe that Baby doll can make good on the promised coupon payments, but that the company will go bankrupt when...

Skywalker Sabers issued 6.8 percent coupon bonds with 11 years left to maturity. These bonds make...

Skywalker Sabers issued 6.8 percent coupon bonds with 11 years left to maturity. These bonds make semiannual payments and currently sell for 98.6 percent of par. What is the effective annual yield? Multiple Choice 7.33% 7.24% 7.19% 7.07% 6.98% 7.11%

Describe following for Bonds : coupon rate current yield Yield to maturity Which ones of the...

Describe following for Bonds : coupon rate current yield Yield to maturity Which ones of the above rates/yield can change over the life of the bond and if yes, why? ( 10 points) Research and find a bond for large blue chip company like McDonald, Intel, GE or any other from Dow Jones 30 list. Provide following ( and list source) Bond information : Company, rating Maturity date Current price Coupon rate % Current yield % Yield to Maturity (YTM)...

Question