Question

In: Finance

What is the YTM of the bond given the information below. The bond makes semiannual interest...

What is the YTM of the bond given the information below. The bond makes semiannual interest payments.

(Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)

Coupon Rate:7.4%

Maturity (years):18

Current Price: $1,163.80

Par value: $1,000.00

YTM: ? %

Solutions

Expert Solution

YTM CAN BE CALCULATED THROUGH IRR FORMULA

SINCE, COUPON PAYMENTS ARE SEMI-ANNUALLY

THEREFORE, WE HAVE TO MULTIPLY IRR WITH 2 FOR GETTING ANNUALLY YTM


Related Solutions

1- What is the price of the bond given the information below. The bond makes annual...
1- What is the price of the bond given the information below. The bond makes annual interest payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16) Coupon Rate:7.9% YTM:10.3% Maturity (years):7 Par value: $1,000 Current Price: ? 2- What is the YTM of the bond given the information below. The bond makes annual interest payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16) Coupon Rate:8.5% Maturity (years):12 Current Price: $1,236.64 Par value:...
1- What is the copon rate of the bond given the information below. The bond makes...
1- What is the copon rate of the bond given the information below. The bond makes semiannual interest payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16) YTM:10.2% Maturity (years):9 Current Price: $1,130.33 Par value: $1,000.00 Cpoupon Rate: ? 3- Question 7 5 Points 2- What is the price of the bond given the information below. The bond makes semiannual interest payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16) Coupon Rate:6.1%...
What is the price of a $100, 12 year, 6%, semiannual bond with a YTM of...
What is the price of a $100, 12 year, 6%, semiannual bond with a YTM of 6.5%? $104.23 $95.88 $95.92 $100.00
Bond Dave has an 8% coupon rate, makes semiannual payments, a 9% YTM, and 25 years...
Bond Dave has an 8% coupon rate, makes semiannual payments, a 9% YTM, and 25 years to maturity. If interest rates suddenly rise 4%, what is the percentage change in the price of bond dave? answer with 4 decimals.
Bond Dave has a 8 percent coupon rate, makes semiannual payments, a 8 percent YTM, and...
Bond Dave has a 8 percent coupon rate, makes semiannual payments, a 8 percent YTM, and 27 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? Enter the answer with 4 decimals (e.g. 0.0123).
Bond Dave has a 7 percent coupon rate, makes semiannual payments, a 7 percent YTM, and...
Bond Dave has a 7 percent coupon rate, makes semiannual payments, a 7 percent YTM, and 26 years to maturity. If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? 4 decimals (e.g. 0.0123).
Consider a 3-year 8% semiannual coupon bond. The YTM of this bond is 6%. Compute the...
Consider a 3-year 8% semiannual coupon bond. The YTM of this bond is 6%. Compute the following a) Macaulay Duration (use  Mac Duration = b) Modified Duration c) Effective duration (assume a ±50 BP change of Yield) d) Convexity Factor (use e) Effective Convexity Factor (assume a ±50 BP change of Yield) PLEASE ANSWER ALL PARTS
A 10-year, 4% semiannual coupon bond with a YTM of 8%, what is its fair value?...
A 10-year, 4% semiannual coupon bond with a YTM of 8%, what is its fair value? Please draw a Price-Interest curve for a 10-year, 4% semiannual coupon bond (Bond value as Y, YTM as X).
a. Assume a $100,000, two-year, 10% bond that makes semiannual interest payments is sold for $96,535...
a. Assume a $100,000, two-year, 10% bond that makes semiannual interest payments is sold for $96,535 when the market interest rate is 12%. Prepare an amortization table and make the journal entries to record the first two interest payments. b. Assume a $250,000, three-year, 12% bond that makes semiannual interest payments is sold for $262,689 when the market interest rate is 10%. Prepare an amortization table and make the journal entries to record the first two interest payments.
Given a 9-year bond with YTM of 4% and a duration of 7.5, what is the...
Given a 9-year bond with YTM of 4% and a duration of 7.5, what is the expected percent price change/return for a 0.05% (5 basis-point/bps) shift up in market yields? Given 1-year ZCB securities with 5.2% yield in GBP and 4.5% yield in EUR, and a spot exchange rate of GBP/EUR at 1.5408, what expected spot ex- change rate in 1-year would result in a break-even between the two instruments? Which bond would be a better investment given a 1Y...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT